Dividend Increases: April 22-26, 2019 (Remaining Sectors)

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Includes: ADC, AVY, EQM, JNJ, LAD, MEOH, MMP, NEP, POR, PRGO, XLNX, XOM
by: FerdiS
Summary

Companies that regularly increase their dividends show confidence in the potential growth of future earnings. I monitor dividend increases to identify candidates for further analysis.

Part 1 of this article covered dividend increases announced for stocks in the Industrials and Financials Sectors.

This is Part 2, which covers the remaining sectors.

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis. Companies that regularly raise dividends show confidence in the potential growth of future earnings.

I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:

  • Dividend Yield ≥ 1.0%
  • Market cap ≥ $1 billion
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet stocks

This past week, 26 companies that announced dividend increases passed these screens, including 2 of the stocks I own.

The following table provides a summary of increases announced for stocks in all sectors except the Industrials and Financials sectors. Please see Part 1 for coverage of those sectors.

The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).

Summary of Dividend Increases: April 22-26, 2019

Previous Post: Dividend Increases: April 8-19, 2019

Perrigo (PRGO)

PRGO is a healthcare company that manufactures and supplies over-the-counter healthcare products, infant formulas, branded products, and generic pharmaceutical products. The company operates through Consumer Healthcare Americas, Consumer Healthcare International, and Prescription Pharmaceuticals segments. PRGO was founded in 1887 and is headquartered in Dublin, Ireland.

Recently, PRGO increased its quarterly dividend from 19¢ per share to 21¢ per share, an increase of 10.53%. The quarterly dividend will be paid on June 18 to shareholders of record on May 31. The ex-dividend date is May 30.

Avery Dennison (AVY)

AVY provides pressure-sensitive materials and a variety of tickets, tags, labels, and other converted products. The company’s pressure-sensitive materials are sold to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping, and die-cutting. AVY was founded in 1935 and is headquartered in Glendale, California.

The company's board of directors approved an increase in the quarterly dividend of 11.54% to 58¢ per share. The stock will trade ex-dividend on June 4, and shareholders can expect to receive the new dividend on June 19.

Johnson & Johnson (JNJ)

Founded in 1886 and based in New Brunswick, New Jersey, JNJ has grown into one of the largest companies in the world. The company is a leader in the pharmaceutical, medical device, and consumer products industries. JNJ distributes its products to the general public, retail outlets and distributors, wholesalers, hospitals, and health care professionals.

Recently, JNJ increased its quarterly dividend to 95¢ per share, an increase of 5.56% over the prior dividend of 90¢ per share. All shareholders of record on May 28 will receive the new dividend on June 11.

Agree Realty (ADC)

Founded in 1971 and headquartered in Farmington Hills, Michigan, ADC is an integrated REIT focused on the ownership, acquisition, development, and management of retail properties in the United States. ADC's business objective is to generate consistent shareholder returns by investing in a diversified portfolio of retail properties net leased to industry tenants.

On Thursday, April 25, ADC increased its quarterly dividend to 57¢ per share, an increase of 2.70%. All shareholders of record on June 28 will receive the new dividend on July 12.

Magellan Midstream Partners (MMP)

Founded in 2000 and headquartered in Tulsa, Oklahoma, MMP is a publicly traded partnership engaged in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. MMP owns the longest refined products pipeline in the USA, with access to about half of the nation’s refining capacity.

MMP will pay a quarterly dividend of $1.005 per share, an increase of 0.75% over the previous quarterly dividend. The new dividend is payable on May 15 to shareholders of record on May 8, with an ex-dividend date of May 7.

Methanex (MEOH)

MEOH is a Canada-based producer and supplier of methanol to markets in North America, the Asia Pacific, Europe, and South America. The company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, and Trinidad and Tobago. MEOH was founded in 1968 and is headquartered in Vancouver, Canada.

On April 24, the board of directors declared a quarterly dividend of 36¢ per share. The new dividend represents an increase of 9.09%. The new dividend is payable on June 30 to shareholders of record on June 16, with an ex-dividend date of June 13.

Portland General Electric (POR)

Founded in 1930 and headquartered in Portland, Oregon, POR is a vertically integrated electric utility engaged in the generation, purchase, transmission, distribution, and retail sale of electricity. The company serves residential, commercial and industrial customers in Oregon. POR generates power from a diverse mix of resources, including hydropower, coal and natural gas.

The company announced an increase of its quarterly dividend of 6.21% to 38.5¢ per share. POR will trade ex-dividend on June 24. The dividend is payable on July 15, to shareholders of record on June 25.

Exxon Mobil (XOM)

XOM is the world's largest publicly traded international oil and gas company. Founded in 1882 and based in Irving, TX, the company is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. The majority of XOM's earnings come from operations outside the United States.

Recently, XOM increased its quarterly dividend from 82¢ per share to 87¢ per share, an increase of 6.10%. The dividend is payable June 10, with an ex-dividend date of May 10.

Lithia Motors (LAD)

LAD operates as an automotive retailer in the United States. The company offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts. LAD was founded in 1946 and is headquartered in Medford, Oregon.

On Wednesday, April 24, LAD increased its quarterly dividend to 30¢ per share, an increase of 3.45%. The ex-dividend date is May 9 and the dividend will be paid on May 24 to shareholders of record on May 10.

Xilinx (XLNX)

Founded in 1984 and headquartered in San Jose, California, XLNX designs and develops programmable devices and associated technologies. The company’s programmable devices comprise integrated circuits (ICS) and three-dimensional ICs. XLNX also designs and develops software design tools, software development environments, and embedded platforms, targeted reference designs, and printed circuit boards.

The company's board of directors approved an increase in the quarterly dividend of 2.78% to 37¢ per share. XLNX will trade ex-dividend on May 15. The dividend is payable on June 3, to shareholders of record on May 16.

EQT Midstream Partners (EQM)

Founded in 1925 and headquartered in Pittsburgh, Pennsylvania, EQM operates as an integrated energy company in the United States. The company explores for, develops, and produces natural gas, natural gas liquids, and crude oil primarily in the Appalachian Basin. EQM provides natural gas transmission, storage and gathering services in southwestern Pennsylvania and northern West Virginia.

The company declared a quarterly dividend of $1.145 per share, an increase of 1.33% over the prior quarterly dividend. The dividend is payable on May 14 to shareholders of record on May 3. EQM will trade ex-dividend on May 2.

NextEra Energy Partners (NEP)

NEP acquires, owns, and operates contracted clean energy projects in the United States and Canada. The company owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as seven contracted natural gas pipeline assets. NEP was founded in 2014 and is based in Juno Beach, Florida.

On April 23, the company declared a dividend of 48.25¢ per share. The new dividend represents a 3.76% increase. NEP will trade ex-dividend on May 6. The dividend is payable on May 15, to shareholders of record on May 7.

Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Below, I'm including charts from F.A.S.T. Graphs for three of this week's dividend raisers, AVY, JNJ, and XLNX.

In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the timeframe in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).

AVY's price line (black) is above the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at a premium to fair value. An investment in AVY in January 2009 would have returned 13.7% on an annualized basis (with dividends included).

JNJ's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in JNJ in January 2009 would have returned 10.5% on an annualized basis (with dividends included).

XLNX's price line is above the primary valuation line and above the stock's normal P/E ratio. The stock is trading at a premium to fair value. An investment in XLNX in April 2009 would have returned 20.9% on an annualized basis (with dividends included).

Upcoming Ex-Dividend Dates

As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is sorted by Ticker, and as before, Next Div is annualized. Please note that the table lists ex-dividend dates of stocks in all sectors except the Industrials and Financials sectors, which were covered in Part 1 of this article.

Summary of Upcoming Ex-Dividend Dates: April 30-May 13, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

American Electric Power

AEP

3.16%

$84.71

9

5.30%

$2.68

05/09

06/10

AES

AES

3.13%

$17.46

8

26.60%

$0.55

04/30

05/15

Allete

ALE

2.92%

$80.39

9

3.30%

$2.35

05/14

06/01

Alexander's

ALX

4.82%

$373.19

5

10.40%

$18.00

05/03

05/17

AptarGroup

ATR

1.29%

$111.42

25

5.70%

$1.44

04/30

05/22

American Water Works

AWK

1.87%

$106.88

11

10.30%

$2.00

05/10

06/04

CMS Energy

CMS

2.79%

$54.90

13

7.00%

$1.53

05/02

05/31

CenterPoint Energy

CNP

3.77%

$30.47

14

6.00%

$1.15

05/15

06/13

California Water Service

CWT

1.59%

$49.79

52

3.30%

$0.79

05/03

05/17

D.R. Horton

DHI

1.36%

$44.00

5

N/A

$0.60

05/10

05/28

Consolidated Edison

ED

3.48%

$84.97

45

3.10%

$2.96

05/14

06/17

Goodyear Tire & Rubber

GT

3.33%

$19.24

6

63.30%

$0.64

04/30

06/03

Hasbro

HAS

2.65%

$102.59

16

9.50%

$2.72

04/30

05/15

Helmerich & Payne

HP

4.84%

$58.71

46

16.80%

$2.84

05/10

06/03

Idacorp

IDA

2.58%

$97.70

7

8.90%

$2.52

05/03

05/30

Intel

INTC

2.40%

$52.43

5

5.90%

$1.26

05/06

06/01

Kroger

KR

2.24%

$25.00

13

11.50%

$0.56

05/14

06/01

Lithia Motors

LAD

1.07%

$112.62

9

18.40%

$1.20

05/09

05/24

Macerich

MAC

7.30%

$41.07

9

4.70%

$3.00

05/07

06/03

Marathon Petroleum

MPC

3.51%

$60.39

9

19.00%

$2.12

05/15

06/10

Microsoft

MSFT

1.42%

$129.89

17

12.10%

$1.84

05/15

06/13

Nexstar Media

NXST

1.54%

$116.85

7

25.60%

$1.80

05/09

05/24

Realty Income

O

3.84%

$70.58

27

4.10%

$2.71

04/30

05/15

Pfizer

PFE

3.60%

$39.97

9

7.20%

$1.44

05/09

06/07

PNM Resources

PNM

2.54%

$45.67

8

10.60%

$1.16

05/01

05/16

Pinnacle West Capital

PNW

3.10%

$95.09

7

5.10%

$2.95

04/30

06/03

PPG Industries

PPG

1.63%

$117.81

47

9.00%

$1.92

05/09

06/12

Starbucks

SBUX

1.86%

$77.45

9

24.30%

$1.44

05/08

05/24

Signet Jewelers

SIG

6.51%

$22.72

8

20.00%

$1.48

05/02

05/31

SJW

SJW

1.98%

$60.47

52

8.90%

$1.20

05/03

06/03

Sonoco Products

SON

2.74%

$62.85

36

5.70%

$1.72

05/09

06/10

Southwest Gas

SWX

2.64%

$82.48

13

9.80%

$2.18

05/14

06/03

Sensient Technologies

SXT

2.05%

$70.33

13

8.20%

$1.44

05/09

06/03

Target

TGT

3.32%

$77.12

51

9.80%

$2.56

05/14

06/10

TJX

TJX

1.67%

$55.06

22

21.90%

$0.92

05/15

06/06

Texas Instruments

TXN

2.63%

$117.21

15

19.70%

$3.08

05/03

05/20

WEC Energy

WEC

3.04%

$77.64

16

8.90%

$2.36

05/13

06/01

Walmart

WMT

2.09%

$101.53

46

2.70%

$2.12

05/09

06/03

WestRock

WRK

4.90%

$37.11

10

26.90%

$1.82

05/09

05/20

Xilinx

XLNX

1.24%

$118.93

16

8.10%

$1.48

05/15

06/03

Exxon Mobil

XOM

4.32%

$80.49

36

5.60%

$3.48

05/10

06/10

Thanks for reading and happy investing!

Disclosure: I am/we are long JNJ, XOM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.