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
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|
|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|
|Extended Stay America, Inc. - Paired Shares||(STAY)||5||5.07||15-May-19||4.55%||Challenger|
|Cogent Communications Holdings, Inc.||(CCOI)||8||4.2||16-May-19||3.45%||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|
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|
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|
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.
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.
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|
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)
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.