15 Upcoming Dividend Increases

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Includes: AGCO, BHB, CCOI, CHCT, HOMB, PAYX, PBFX, POOL, SO, SPY, STAY, SWX, TJX, TTEK, WHR, XLNX
by: Dividend Derek
Summary

All stocks have at least five years of dividend growth history.

15 increases for next week (down from 25 last week).

An average increase of 8.4% with five sporting at least a 10% increase. Median increase of 4.8%.

Introduction

I'm a huge fan of dividend growth stocks and hope you are too. If you do, you are in the right place! I've compiled a list of stocks that are increasing their dividends next week. This gives investors an opportunity to start or add to a position to capture an upcoming payment. This can be especially important for retirees who live on dividend checks.

This list is a trimmed-down version only covering dividend increases. A full upcoming dividend calendar is always available here. If you know how this was built and the caveats, feel free to jump down to the lists themselves.

How It's Assembled

The information presented below was created by combining the "U.S. Dividend Champion" spreadsheet hosted here, with upcoming dividend information from Nasdaq. This meshes metrics about companies with dividend growth history with upcoming dividend payments (and whether those payments are increasing). These companies all have a minimum five-year dividend growth history.

What Is The Ex-Dividend Date?

The "ex-dividend" date is the day you are no longer entitled to the dividend or distribution. You need to have made your purchase by the preceding business day. If the date is a Tuesday, you need to have purchased (or already owned) shares by market close on Monday. Be aware that for any stock going ex-dividend on a Monday (or Tuesday, if Monday may be a holiday), you must own it by the prior Friday.

Dividend Streak Categories

Here are the definitions of the streak categories as I'll be using them throughout the piece:

  • King: 50+ years
  • Champion/Aristocrat: 25+ years
  • Contender: 10-24 years
  • Challenger: 5+ years

Fun Facts

Category Count
King 0
Champion 0
Contender 5
Challenger 10

The Main List

The data is sorted by the ex-dividend day (ascending) and then the streak (descending):

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
Bar Harbor Bankshares, Inc. (BHB) 16 3.22 13-May-19 10.00% Contender
Southwest Gas Holdings, Inc. (SWX) 13 2.69 14-May-19 4.81% Contender
Home Bancshares, Inc. - common stock (HOMB) 9 2.75 14-May-19 8.33% Challenger
Paychex, Inc. (PAYX) 8 2.95 14-May-19 10.71% Challenger
AGCO Corporation (AGCO) 7 0.88 14-May-19 6.67% Challenger
PBF Logistics LP Common Units representing Limited Partner Interests (PBFX) 6 9.85 14-May-19 0.99% Challenger
Tetra Tech, Inc. (TTEK) 5 0.89 14-May-19 25.00% Challenger
TJX Companies, Inc. (The) (TJX) 23 1.7 15-May-19 17.95% Contender
Xilinx, Inc. (XLNX) 17 1.26 15-May-19 2.78% Contender
Extended Stay America, Inc. - Paired Shares (STAY) 5 5.07 15-May-19 4.55% Challenger
Whirlpool Corporation (WHR) 9 3.5 16-May-19 4.35% Challenger
Cogent Communications Holdings, Inc. (CCOI) 8 4.2 16-May-19 3.45% Challenger
Pool Corporation (POOL) 8 1.2 16-May-19 22.22% Challenger
Community Healthcare Trust Incorporated (CHCT) 5 4.51 16-May-19 0.74% Challenger
Southern Company (The) (SO) 19 4.75 17-May-19 3.33% Contender

Field Definitions

Streak: This is years of dividend growth history sourced from the U.S. Dividend Champions spreadsheet.

Forward Yield: This is the new payout rate divided by the current share price.

Ex-Dividend Date: This is the date by which you need to own the stock.

Increase Percent: This is the amount by which the dividend is being increased.

Streak Category: This is the overall dividend history classification of the company.

Show Me The Money

Here's a table mapping the new rates versus the old rates. It also reiterates the increase in percentage. This table is sorted the same way as the first table (ex-dividend day ascending, dividend streak descending).

Ticker Old Rate New Rate Increase Percent
BHB 0.2 0.22 10.00%
SWX 0.52 0.545 4.81%
HOMB 0.12 0.13 8.33%
PAYX 0.56 0.62 10.71%
AGCO 0.15 0.16 6.67%
PBFX 0.5 0.51 0.99%
TTEK 0.12 0.15 25.00%
TJX 0.195 0.23 17.95%
XLNX 0.36 0.37 2.78%
STAY 0.22 0.23 4.55%
WHR 1.15 1.2 4.35%
CCOI 0.56 0.6 3.45%
POOL 0.45 0.55 22.22%
CHCT 0.405 0.41 0.74%
SO 0.6 0.62 3.33%

Additional Metrics

Here are some additional metrics related to these companies, including yearly pricing action and the P/E ratio. This table is sorted in exactly the same way as the table above. The value investor may find stock ideas with those companies near their 52-week low. They may provide a larger margin of safety and inflated yield.

Ticker Current Price 52 Week Low 52 Week High PE Ratio % Off Low % Off High
BHB 27.29 21.25 30.95 13.04 28% Off Low 11% Off High
SWX 81.1 70.34 85.97 22.07 15% Off Low 4% Off High
HOMB 18.94 15.35 24.56 10.95 23% Off Low 22% Off High
PAYX 84.19 61.32 84.85 29.55 36% Off Low 0% Off High
AGCO 73 49.5 75.56 17.7 45% Off Low 3% Off High
PBFX 20.72 18.95 23.69 12.7 9% Off Low 12% Off High
TTEK 67.54 48.52 72.56 23.74 38% Off Low 6% Off High
TJX 54.01 41.16 56.64 22.15 29% Off Low 4% Off High
XLNX 117.69 64.15 141.6 34.01 82% Off Low 16% Off High
STAY 18.13 14.77 22.58 28.79 22% Off Low 19% Off High
WHR 136.98 99.4 167.54 37.58 38% Off Low 17% Off High
CCOI 57.17 42.4 58.05 84.46 33% Off Low New High
POOL 183.06 136.83 186.5 32.3 33% Off Low 1% Off High
CHCT 36.35 25.34 37.62 196.92 43% Off Low 0% Off High
SO 52.2 42.42 53.4 16.16 23% Off Low 1% Off High

Tickers By Yield (With Growth Rates)

Some investors are more interested in current yield, so this table is sorted descending by yield. This also includes some of the historical dividend growth rates as a bonus. Additionally, the "Chowder Rule" has been included, which is the current yield + five-year dividend growth rate.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
PBFX 9.85 5.9 11
STAY 5.07 6.1 9.6
SO 4.75 3.5 3.4 3.4 3.7 8.2
CHCT 4.51 2.6 45.9
CCOI 4.2 17.8 13.2 22.8 22.8
WHR 3.5 5.8 9.7 13.9 10.2 13.9
BHB 3.22 5.4 5.3 7.2 5.7 10.4
PAYX 2.95 13.5 10.9 9.9 6 12.9
HOMB 2.75 15 18.7 26 25 28.8
SWX 2.69 6.2 9.2 9.8 8.7 9.8
TJX 1.7 23.8 22.6 21.9 21.6 21.9
XLNX 1.26 3.6 5.4 8.1 10.2 8.1
POOL 1.2 21.1 19.8 18.7 12.9 18.7
TTEK 0.89 17.9 14.1
AGCO 0.88 7.1 7.7 8.4 9.3

Bonus Charts

This week I'll cover TJX Companies which you may know better through its retail stores T.J. Maxx, HomeGoods and Marshalls. You would be forgiven if you thought that all retail was doing poorly from the popular narrative. The simple fact of the matter is that TJX is getting it done with its unique shopping experiences. Since the products carried vary between stores, it becomes about the experience of making a great find. That success has parlayed tangibly for investors.

The company has raised its dividend for 23 years in a row and is two years away from becoming a Dividend Aristocrat/Champion. The company sports an A+ credit rating from S&P. Shares aren't cheap today when glancing at the Fast Graph.

(Source)

It's been difficult finding a reasonable entry point in this stock. The last two times it has hit its historical P/E ratio, it rapidly bounced off.

From Simply Safe dividends, TJX rocks it with a safety score of 78, growth of 90, but at the expense of current yield.

(Source)

Focusing on the dividend growth numbers just for TJX, you can see why the growth rate score is so high.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
TJX 1.7 23.8 22.6 21.9 21.6 21.9

Part of the reason I picked TJX for this week was because of its fantastic dividend growth rates. This recent increase of 18% is actually a little lower than the historical growth rates, so keep an eye if this data point becomes a trend going forward. Other than this, all time periods sport a growth rate averaging over 20% per year.

Running a stock return calculation against the S&P (SPY) since May of 2010 to May of 2018 (I have a bug to work on with the most recent split), TJX has been a market crusher (19.6% versus 13.2% annually). This chart you can see the investment value over time and TJX (blue line) steadily grew faster than SPY (black line).

(Courtesy: Custom Stock Alerts)

Conclusion

I hope you are able to find this information valuable. Let me know if you want to see additional data points or what may help make this more useful.

As always, do your due diligence on any stock before buying or selling. Happy investing!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.