I like monitoring dividend increases of a selection of dividend growth stocks in the CCC list because I consider such stocks to be worthy candidates for further analysis. The following screens determine the selection:
- Dividend Yield ≥ 1.0%
- Market cap ≥ $1 billion
- No stocks that are being acquired
- No Over-The-Counter or Pink Sheet stocks
This article provides a summary of dividend increases announced in the first quarter of 2019 (Q1-2019), as summarized in my weekly Dividend Increases article series.
In preparing for this article, I excluded dividend increases of stocks not in the latest available CCC list (dated 03/29/19) and those that no longer pass the above screens.
Exactly 204 companies in the latest CCC list announced dividend increases in Q1-2019, but one company increased its dividend twice in Q1-2019, so there are 205 dividend increases in total.
The top increase is from Independent Bank Group (IBTX) with a 79% increase. IBTX operates as the bank holding company for Independent Bank, which provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. The company offers various deposit and loan products, as well as other financial services. IBTX was founded in 2002 and is headquartered in McKinney, Texas.
The runner-up is Primerica (PRI) with a 36% increase. Together with its subsidiaries, PRI distributes financial products through licensed sales representatives to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. PRI was founded in 1927 and is headquartered in Duluth, Georgia.
The third largest increase is from one of the stocks I own, Home Depot (HD), which announced a 32% increase. Founded in 1978 and based in Atlanta, Georgia, HD is a home improvement retailer that sells an assortment of building materials, home improvement products, and lawn and garden products. HD provides installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers.
Here is a summary of the top 10 increases:
Stocks I own in my DivGro portfolio are highlighted.
The Financials and Industrials sectors both have three stocks in the top 10 increases, followed by the Materials sector with two stocks. The only other sectors with representation in the top 10 are the Consumer Discretionary and Information Technology sectors.
Analysis of Increases
Here is a table of tickers in 5 different categories based on the percentage of each dividend increase. Stocks in my portfolio are highlighted:
The following table presents a summary of average dividend increases by Category, along with average dividend yield and average years of consecutive dividend increases:
Generally, there is an inverse correlation between the average increase and both average yield and average streak (though the correlation with average streak is not perfect).
In DivGro, I have one outsized increase, four large increases, fifteen medium increases, five small increases, and four tiny increases. The average increase of my DivGro stocks is 7.09% and those stocks yield 3.43%, on average. Moreover, the average streak is 22.6 years.
The following table presents a summary of average increase overall (i.e. for the 204 stocks included in this analysis), and by Sector. Also included are the average yield and average streak:
In the table, the highest and lowest averages are indicated with green and red cells, respectively.
Top Increases By Sector
Finally, here are the top dividend increases by Sector. As before, stocks in my portfolio are highlighted.
• Nexstar Media (NXST) — Communication Services
Founded in 1996 and headquartered in Irving, Texas, NXST operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets. NXST offers free over-the-air programming to television viewing audiences.
• Home Depot (HD) — Consumer Discretionary
• Church & Dwight (CHD) — Consumer Staples
CHD develops, manufactures and markets a range of household, personal care, and specialty products. The company sells its consumer products under a range of brands through a distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, specialty stores, and websites.:// CHD was founded in 1846 and is headquartered in Ewing, New Jersey.
• Marathon Petroleum (MPC) — Energy
MPC refines, markets, sells, and transports petroleum products in the United States. The company’s Refining & Marketing segment refines crude oil and other feed stocks; its Speedway segment sells transportation fuels and convenience products; and its Midstream segment midstream operates energy infrastructure assets. MPC was incorporated in 2009 and is headquartered in Findlay, Ohio.
• Independent Bank Group (IBTX) — Financials
• Anthem (ANTM) — Health Care
ANTM operates as a health benefits company in the United States, offering a spectrum of network-based managed care health benefit plans to large and small group, individual, Medicaid, and Medicare markets. It also provides a range of managed care services to self-funded customers. ANTM was founded in 1944 and is headquartered in Indianapolis, Indiana.
• Trinity Industries (TRN) — Industrials
Founded in 1933 and headquartered in Dallas, Texas, TRN is a diversified industrial company that owns businesses operating in the energy, chemical, agriculture, transportation, and construction sectors. TRN provides railcars and tank cars; highway construction products and aggregates; deck and tank barges; utility steel structures and containers; and leasing and management services.
• Oracle (ORCL) — Information Technology
ORCL develops, manufactures, markets, sells, hosts, and supplies IT-related application, platform, and infrastructure services to businesses, government agencies, educational institutions, and resellers worldwide. The company also licenses its Oracle Database for storage, retrieval, and manipulation of data. ORCL was founded in 1977 and is headquartered in Redwood City, California.
• Sherwin-Williams (SHW) — Materials
SHW develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers in North and South America, the Caribbean, Europe, Asia, and Australia. The company operates in three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. SHW was founded in 1866 and is headquartered in Cleveland, Ohio.
• Rexford Industrial Realty (REXR) — Real Estate
REXR is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. As of February 2019, REXR owns 179 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.
• NextEra Energy (NEE) — Utilities
NEE is an electric power company with approximately 42,500 MW of generating capacity in 26 states in the United States and 4 provinces in Canada. The company generates electricity from gas, oil, coal, petroleum coke nuclear, solar and wind. Formerly known as FPL Group, the company was founded in 1984 and is based in Juno Beach, Florida.
Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
I regularly report dividend increases for a selection of stocks in the CCC list. In Q1-2019, 204 companies announced dividend increases, including one (Realty Income) that did so twice.
This article provided a summary of these dividend increases and some interesting statistics.
Below is a comparison with the statistics from last year's summary article:
So far in 2019, the average dividend increase is well below the average dividend increase of 2018. I'm hoping to continue to monitor these statistics throughout the year.
Thanks for reading and happy investing!
Disclosure: I am/we are long HD, NEE. 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.