Dividend Increases: May 6-10, 2019 (Part 1: Industrials And Materials Sectors)

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Includes: CBT, EXPD, FNV, HNI, IEX, IOSP, MAN, MSA, UFS, WTS
by: FerdiS
Summary

Companies that regularly raise their dividend payments show confidence in future earnings growth potential.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

Last week, 27 companies announced dividend increases. Part 1 covers the Industrials and Materials sectors.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis. Companies that regularly raise dividends show confidence in the potential growth of future earnings.

I use the CCC List as a starting point and apply the following screens:

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

In the past week, 27 companies that declared dividend increases passed these screens. In Part 1 of this article, I'm covering dividend increase announcements for stocks in the Industrials and Materials sectors. See the upcoming Part 2 and Part 3 for coverage of the remaining sectors.

The following table provides a summary of these increases.

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: May 6-10, 2019

Previous Post: Dividend Increases: April 29-May 3, 2019

IDEX (IEX)

IEX is an applied solutions company with 40 diverse businesses operating in more than 20 countries. The company operates through three segments: Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products. IEX was incorporated in 1987 and is headquartered in Lake Forest, Illinois.

The company announced a quarterly DIV increase of 16.28% to 50¢ per share. All shareholders of record on May 17 can expect the dividend to be paid on May 31.

Expeditors International of Washington (EXPD)

EXPD provides logistics services worldwide. The company offers airfreight services; ocean freight and ocean services; intra-continental ground transportation and delivery, warehousing, and distribution services; and customs clearance, purchase order management, cargo insurance, cargo monitoring, and tracking, and other logistics solutions. EXPD was founded in 1979 and is headquartered in Seattle, Washington.

On May 8, the board of directors approved an increase to the regular semi-annual dividend from 45¢ per share to 50¢ per share, an increase of 11.11%. The new dividend is payable on June 17 to shareholders of record on June 3. The ex-dividend date will be May 31.

Innospec (IOSP)

Formerly known as Octel Corp, IOSP develops, manufactures, blends, markets, and supplies specialty chemicals for use as fuel additives, ingredients for personal care, home care, agrochemical, mining, and other applications, and oilfield chemicals worldwide. IOSP was founded in 1938 and is headquartered in Englewood, Colorado.

On May 7, the company declared a dividend of 50¢ per share. The new dividend represents an 11.11% increase. The dividend is payable May 30, with an ex-dividend date of May 20.

MSA Safety (MSA)

Established in 1914, MSA develops, manufactures, and supplies safety products that protect people and facilities. The company's core products include self-contained breathing apparatus, fixed gas, and flame detection systems, portable gas detection instruments, industrial head protection, fire and rescue helmets, and fall protection devices. MSA is based in Cranberry Township, Pennsylvania.

The board of directors of MSA has declared a quarterly dividend of 42¢ per share. The new dividend is 10.53% above the prior dividend of 38¢ per share. The dividend is payable on June 10 to shareholders of record on May 20.

Watts Water Technologies (WTS)

WTS designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through, and out of buildings. The company sells its products to plumbing, heating, and mechanical wholesale distributors, original equipment manufacturers, do-it-yourself chains, and wholesalers. WTS founded in 1874 and is headquartered in North Andover, Massachusetts.

The company announced a quarterly DIV increase of 9.52% to 23¢ per share. The new dividend is payable on June 14 to shareholders of record on May 31, with an ex-dividend date of May 30.

ManpowerGroup (MAN)

MAN provides workforce solutions and services in the Americas, Europe, and the Asia Pacific Middle East region. The company’s recruitment services include permanent, temporary, and contract recruitment. It also offers career management, training and development, and outsourcing of human resources functions. MAN was founded in 1948 and is headquartered in Milwaukee, Wisconsin.

The board of directors of MAN has declared a semi-annual dividend of $1.09 per share. The new dividend is 7.92% above the prior dividend of $1.01¢ per share. The stock will trade ex-dividend on May 31, and shareholders can expect to receive the new dividend on June 14.

Cabot (CBT)

CBT operates as a specialty chemicals and performance materials company. The company provides carbon black to enhance the physical properties of things in which it is incorporated. It also provides rubber blacks for use as a rubber reinforcing agent and performance additive. CBT was founded in 1882 and is headquartered in Boston, Massachusetts.

The company increased its quarterly dividend by 6.06%, from 33¢ per share to 35¢ per share. The quarterly dividend will be paid on June 14 to shareholders of record on May 31. The ex-dividend date is May 30.

Domtar (UFS)

Incorporated in 2006 and based in Fort Mill, South Carolina, UFS designs, manufactures, markets and distributes a range of fiber-based products, including communication papers, specialty and packaging papers, and absorbent hygiene products. The foundation of UFS's business is a network of wood fiber converting assets that produce paper grade, fluff, and specialty pulps.

Recently, UFS increased its quarterly dividend from 43.50¢ per share to 45.5¢ per share, an increase of 4.60%. The dividend is payable on July 16 to shareholders of record on July 2. The stock will trade ex-dividend on July 1.

Franco-Nevada (FNV)

FNV operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, Australia, and Africa. It also holds interests in silver and platinum group metals; and oil, gas, and natural gas liquids. FNV was incorporated in 2007 and is headquartered in Toronto, Canada.

The company declared a quarterly dividend of 25¢ per share, an increase of 4.17% over the prior quarterly dividend. The first payment will be on June 27 to shareholders of record on June 13. The ex-dividend date is June 12.

HNI (HNI)

HNI designs, manufactures, and markets office furniture and hearth products. The company's office furniture products include panel-based and freestanding furniture systems, seating, storage, and tables. Its hearth products include a line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings, and accessories. HNI was founded in 1944 and is headquartered in Muscatine, Iowa.

On May 7, the company declared a dividend of 30.5¢ per share. The new dividend represents a 3.39% increase. All shareholders of record on May 17 will receive the new dividend on June 3.

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 last week's dividend raisers, IEX, MAN, and CBT.

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).

IEX'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 IEX in January 2009 would have returned 20.4% on an annualized basis (with dividends included).

MAN's price line is below the stock's normal P/E ratio and below the primary valuation line. The stock is trading at a discount to fair value. An investment in MAN in January 2009 would have returned 11.6% on an annualized basis (with dividends included).

CBT's price line is below the primary valuation line and below the stock's normal P/E ratio. The stock is trading at a discount to fair value. An investment in CBT in October 2009 would have returned 5.5% 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 ex-dividend dates are only for stocks in the Industrials and Materials sectors. See Part 2 and Part 3 of this article for coverage of the other sectors.

Summary of Upcoming Ex-Dividend Dates: May 14-27, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

Applied Industrial Technologies

AIT

2.25%

$55.19

10

5.50%

$1.24

05/14

05/31

Alaska Air

ALK

2.35%

$59.55

7

45.00%

$1.40

05/20

06/06

Apogee Enterprises

APOG

1.82%

$38.41

8

11.80%

$0.70

05/15

05/31

Barnes

B

1.16%

$54.98

8

6.60%

$0.64

05/23

06/10

Carlisle

CSL

1.20%

$133.77

42

12.90%

$1.60

05/14

06/03

Emerson Electric

EMR

3.02%

$64.84

62

3.20%

$1.96

05/16

06/10

Healthcare Services

HCSG

2.37%

$33.30

17

2.80%

$0.79

05/23

06/28

Huntington Ingalls Industries

HII

1.69%

$203.21

7

43.30%

$3.44

05/23

06/07

HNI

HNI

3.43%

$35.57

8

4.00%

$1.22

05/16

06/03

Honeywell International

HON

1.96%

$167.00

8

12.70%

$3.28

05/23

06/14

Harris

HRS

1.53%

$179.32

17

9.70%

$2.74

05/16

06/04

IDEX

IEX

1.33%

$150.34

9

13.30%

$2.00

05/16

05/31

Innospec

IOSP

1.20%

$83.46

5

12.20%

$1.00

05/20

05/30

L3 Technologies

LLL

1.46%

$232.43

16

7.80%

$3.40

05/16

06/04

Mobile Mini

MINI

3.29%

$33.47

6

N/A

$1.10

05/14

05/29

MSA Safety

MSA

1.59%

$105.46

47

4.80%

$1.68

05/17

06/10

Neenah Paper

NP

2.94%

$61.23

9

18.60%

$1.80

05/16

06/04

Oshkosh

OSK

1.44%

$75.00

6

45.90%

$1.08

05/15

05/30

Ryder System

R

3.74%

$57.75

14

10.30%

$2.16

05/17

06/21

Robert Half International

RHI

2.21%

$56.09

16

11.80%

$1.24

05/23

06/14

Sherwin-Williams

SHW

1.05%

$431.03

41

11.50%

$4.52

05/16

05/31

Scotts Miracle-Gro

SMG

2.51%

$87.65

9

7.20%

$2.20

05/24

06/10

Snap-On

SNA

2.33%

$162.86

9

16.60%

$3.80

05/20

06/10

Schweitzer-Mauduit Intl

SWM

5.82%

$30.25

7

6.50%

$1.76

05/23

06/21

Timken

TKR

2.32%

$48.21

5

3.80%

$1.12

05/21

06/04

United Parcel Service

UPS

3.89%

$98.71

10

8.00%

$3.84

05/17

06/05

United Technologies

UTX

2.20%

$133.43

25

5.30%

$2.94

05/16

06/10

Vulcan Materials

VMC

0.97%

$127.42

6

94.70%

$1.24

05/23

06/07

Thanks for reading and 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.