Dividend Increases: May 27-31, 2019

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Includes: DCI, LOW, LYB
by: FerdiS
Summary

Companies can only increase their dividends regularly and sustainably if they grow earnings sufficiently.

This article summarizes last week's dividend increase announcements.

I also include a summary of upcoming ex-dividend dates.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis. Companies can only increase their dividends regularly and sustainably if they grow earnings sufficiently.

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

Last week, three companies that decided to increase their dividends passed these screens, including one of the stocks I own.

The table below presents 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 27-31, 2019

Previous Post: Dividend Increases: May 20-24, 2019

The stock I own is highlighted in the table.

Lowe's (LOW)

LOW is a home improvement retailer. The company offers a complete line of products for maintenance, repair, remodeling, and home decorating. It also offers installation services through independent contractors, as well as extended protection plans and repair services. LOW was founded in 1946 and is based in Mooresville, North Carolina.

Recently, LOW increased its quarterly dividend to 55¢ per share, an increase of 14.58% over the prior dividend of 48¢ per share. The dividend is payable on August 7 to shareholders of record at the close of business on July 24.

LyondellBasell Industries (LYB)

LYB is a global chemical company with operations in 17 countries. The company manufactures chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. LYB was founded in 2005 and is based in London, the United Kingdom.

The company declared a quarterly dividend of $1.05 per share, an increase of 5.00% over the prior quarterly dividend. The dividend is payable on June 17 to shareholders of record on June 10. The ex-dividend date is June 7.

Donaldson (DCI)

DCI is a leading worldwide provider of filtration systems and replacement parts. The company's product mix includes air and liquid filtration systems and exhaust and emission control products. Products are manufactured at various plants internationally and through three joint ventures. DCI was founded in 1915 and is based in Minneapolis, Minnesota.

The company announced an increase of its quarterly dividend of 10.53% to 21¢ per share. The new dividend is payable on June 28 to shareholders of record on June 13, with an ex-dividend date of June 12.

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, LOW, LYB, and DCI.

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 time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).

LOW's price line (black) is above the primary valuation line (orange) and below the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in LOW in February 2009 would have returned 18.2% on an annualized basis (with dividends included).

LYB'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 LYB in January 2011 would have returned 12.9% on an annualized basis (with dividends included).

DCI's price line is above the primary valuation line and below the stock's normal P/E ratio. The stock is trading at about fair value. An investment in DCI in August 2009 would have returned 10.9% 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.

Summary of Upcoming Ex-Dividend Dates: June 4-17, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

American Assets Trust

AAT

2.46%

$45.52

8

5.10%

$1.12

06/12

06/27

Automatic Data Processing

ADP

1.97%

$160.03

44

11.70%

$3.16

06/13

07/01

Ameren

AEE

2.57%

$73.93

5

2.90%

$1.90

06/11

06/28

Altra Industrial Motion

AIMC

2.15%

$31.57

7

14.90%

$0.68

06/17

07/02

Arthur J Gallagher

AJG

2.03%

$84.80

9

3.20%

$1.72

06/06

06/21

Air Lease

AL

1.43%

$36.41

7

39.80%

$0.52

06/04

07/11

Albemarle

ALB

2.27%

$64.82

25

6.70%

$1.47

06/13

07/01

Allegion

ALLE

1.09%

$99.07

6

N/A

$1.08

06/13

06/28

Amerisafe

AMSF

1.66%

$60.22

7

22.40%

$1.00

06/06

06/21

Anthem

ANTM

1.16%

$275.10

9

14.90%

$3.20

06/07

06/25

Argo

ARGO

1.75%

$70.70

7

15.70%

$1.24

06/06

06/21

Avnet

AVT

1.93%

$41.55

6

21.10%

$0.80

06/04

06/19

AVX

AVX

3.04%

$15.12

9

5.60%

$0.46

06/13

06/28

Avery Dennison

AVY

2.20%

$105.23

9

12.00%

$2.32

06/04

06/19

Bank of America

BAC

2.23%

$26.93

5

68.30%

$0.60

06/06

06/28

Booz Allen Hamilton

BAH

1.45%

$63.49

8

14.30%

$0.92

06/13

06/28

Best Buy

BBY

3.18%

$62.84

16

21.50%

$2.00

06/12

07/05

Becton, Dickinson

BDX

1.31%

$235.59

47

8.30%

$3.08

06/06

06/28

Big Lots

BIG

4.46%

$26.93

5

N/A

$1.20

06/13

06/28

BlackRock

BLK

3.14%

$420.57

10

12.30%

$13.20

06/05

06/20

Broadridge Financial Solutions

BR

1.55%

$125.15

12

16.10%

$1.94

06/13

07/03

BancorpSouth Bank

BXS

2.48%

$27.42

6

49.10%

$0.68

06/13

07/01

Commerce Bancshares

OTC:CBSH

1.80%

$57.69

51

5.90%

$1.04

06/06

06/24

Community Bank System

CBU

2.44%

$62.38

26

4.90%

$1.52

06/13

07/10

Crown Castle International

CCI

3.45%

$130.61

5

N/A

$4.50

06/13

06/28

Chemical Financial

CHFC

3.53%

$38.57

7

7.30%

$1.36

06/06

06/21

C.H. Robinson Worldwide

CHRW

2.49%

$80.45

21

6.10%

$2.00

06/06

06/28

Comerica

CMA

3.83%

$70.07

10

22.80%

$2.68

06/13

07/01

CME

CME

1.56%

$192.65

9

9.20%

$3.00

06/07

06/25

CNO Financial

CNO

2.76%

$15.92

8

28.80%

$0.44

06/07

06/24

Chesapeake Utilities

CPK

1.78%

$91.07

16

6.50%

$1.62

06/13

07/05

CenterState Bank

CSFL

1.99%

$22.07

5

58.50%

$0.44

06/13

06/28

Dominion Energy

D

4.88%

$75.28

16

8.20%

$3.67

06/06

06/20

Donaldson

DCI

1.73%

$48.55

32

8.40%

$0.84

06/12

06/28

Dick's Sporting Goods

DKS

3.08%

$35.77

5

12.50%

$1.10

06/13

06/28

Digital Realty Trust

DLR

3.70%

$116.87

15

4.90%

$4.32

06/13

06/28

DTE Energy

DTE

3.01%

$125.65

10

6.70%

$3.78

06/14

07/15

Brinker International

EAT

3.96%

$38.41

13

11.60%

$1.52

06/06

06/27

Ecolab

ECL

0.99%

$185.53

27

12.30%

$1.84

06/17

07/15

El Paso Electric

EE

2.32%

$66.44

9

6.20%

$1.54

06/13

06/28

Eastman Chemical

EMN

3.71%

$66.84

9

13.30%

$2.48

06/14

07/05

Exponent

EXPO

1.13%

$56.50

7

28.20%

$0.64

06/06

06/21

Extra Space Storage

EXR

3.37%

$106.74

10

18.30%

$3.60

06/13

06/28

First American Financial

FAF

3.22%

$52.18

9

27.20%

$1.68

06/07

06/17

FBL Financial

FFG

3.12%

$61.54

9

28.80%

$1.92

06/13

06/28

First Horizon National

FHN

4.13%

$13.58

8

23.00%

$0.56

06/13

07/01

Flowers Foods

FLO

3.36%

$22.60

18

9.80%

$0.76

06/06

06/21

Fidelity National Financial

FNF

3.16%

$39.21

8

23.00%

$1.24

06/13

06/28

Franco-Nevada

FNV

1.29%

$77.58

12

5.70%

$1.00

06/12

06/27

GATX

GATX

2.61%

$70.49

9

7.30%

$1.84

06/13

06/30

Gilead Sciences

GILD

3.94%

$63.98

5

N/A

$2.52

06/13

06/27

Gaming and Leisure Properties

GLPI

6.92%

$39.29

5

N/A

$2.72

06/13

06/28

Genuine Parts

GPC

3.06%

$99.59

63

5.70%

$3.05

06/06

07/01

Huntington Bancshares

HBAN

4.36%

$12.86

8

21.20%

$0.56

06/14

07/01

Home Depot

HD

2.85%

$190.76

10

21.40%

$5.44

06/05

06/20

Hillenbrand

HI

2.22%

$37.77

12

1.20%

$0.84

06/13

06/28

Horace Mann Educators

HMN

2.81%

$40.86

10

7.90%

$1.15

06/13

06/28

HP

HPQ

3.37%

$19.00

9

16.30%

$0.64

06/11

07/03

Intercontinental Exchange

ICE

1.33%

$82.54

7

49.20%

$1.10

06/13

06/28

Ingersoll-Rand

IR

1.76%

$120.38

8

23.90%

$2.12

06/06

06/28

Iron Mountain

IRM

7.90%

$30.94

9

16.80%

$2.44

06/14

07/02

ITT

ITT

1.00%

$58.52

7

6.00%

$0.59

06/07

07/01

J & J Snack Foods

JJSF

1.25%

$160.30

15

23.00%

$2.00

06/11

07/03

Kimberly-Clark

KMB

3.16%

$130.18

47

5.50%

$4.12

06/06

07/02

Coca-Cola

KO

3.25%

$49.30

57

6.90%

$1.60

06/13

07/01

Kohl's

KSS

5.31%

$50.43

9

11.80%

$2.68

06/11

06/26

Kansas City Southern

KSU

1.27%

$113.09

7

11.40%

$1.44

06/07

07/03

Lamar Advertising

LAMR

4.90%

$78.37

6

N/A

$3.84

06/13

06/28

Lancaster Colony

LANC

1.80%

$144.19

56

8.60%

$2.60

06/06

06/28

Lear

LEA

2.49%

$120.70

9

32.70%

$3.00

06/06

06/26

Leggett & Platt

LEG

4.45%

$35.94

48

4.80%

$1.60

06/13

07/15

Lam Research

LRCX

2.49%

$176.64

5

N/A

$4.40

06/11

07/10

Southwest Airlines

LUV

1.50%

$48.08

8

34.40%

$0.72

06/04

06/26

LyondellBasell Industries

LYB

5.47%

$76.72

8

14.90%

$4.20

06/07

06/17

Main Street Capital

MAIN

7.52%

$39.89

9

4.30%

$3.00

06/17

06/25

Mercury General

MCY

4.33%

$58.00

32

0.40%

$2.51

06/12

06/27

MDU Resources

MDU

3.25%

$24.95

28

2.70%

$0.81

06/12

07/01

Methanex

MEOH

3.37%

$42.75

9

11.00%

$1.44

06/13

06/30

Altria

MO

6.44%

$49.68

49

9.70%

$3.20

06/13

07/10

Medical Properties Trust

MPW

5.61%

$17.83

5

4.40%

$1.00

06/12

07/11

Merck

MRK

2.72%

$80.74

8

2.20%

$2.20

06/14

07/08

Motorola Solutions

MSI

1.51%

$150.94

9

13.80%

$2.28

06/13

07/15

Nasdaq

NDAQ

2.07%

$90.82

8

26.70%

$1.88

06/13

06/28

NewMarket

NEU

1.79%

$391.90

13

15.20%

$7.00

06/14

07/01

New Jersey Resources

NJR

2.45%

$47.75

23

6.50%

$1.17

06/14

07/01

Nielsen Holdings

NLSN

6.10%

$22.94

6

14.10%

$1.40

06/04

06/19

EnPro Industries

NPO

1.77%

$56.48

5

N/A

$1.00

06/04

06/19

Insperity

NSP

1.05%

$114.58

9

18.70%

$1.20

06/07

06/24

Northern Trust

NTRS

2.78%

$86.34

8

9.70%

$2.40

06/13

07/01

NorthWestern

NWE

3.23%

$71.19

15

7.70%

$2.30

06/13

06/28

Omnicom

OMC

3.34%

$77.75

10

9.90%

$2.60

06/13

07/12

Occidental Petroleum

OXY

6.23%

$50.07

15

5.40%

$3.12

06/07

07/15

Prosperity Bancshares

PB

2.49%

$65.78

20

10.90%

$1.64

06/13

07/01

Public Service Enterprise

PEG

3.20%

$58.68

8

4.60%

$1.88

06/06

06/28

PepsiCo

PEP

2.96%

$128.86

47

9.40%

$3.82

06/06

06/28

Packaging Corp Of America

PKG

3.50%

$90.40

8

15.80%

$3.16

06/13

07/15

Children's Place

PLCE

2.43%

$92.31

6

N/A

$2.24

06/17

06/28

Prologis

PLD

2.84%

$74.66

6

11.40%

$2.12

06/12

06/28

PolyOne

POL

3.05%

$25.62

9

24.90%

$0.78

06/13

07/10

PPL

PPL

5.51%

$29.95

18

3.50%

$1.65

06/07

07/01

PS Business Parks

PSB

2.61%

$160.89

5

16.60%

$4.20

06/11

06/27

Qualcomm

QCOM

3.69%

$67.17

16

13.30%

$2.48

06/05

06/27

Restaurant Brands International

QSR

3.07%

$65.22

5

N/A

$2.00

06/14

07/03

Regions Financial

RF

3.99%

$14.02

6

38.70%

$0.56

06/06

07/01

Retail Opportunity Investments

ROIC

4.70%

$16.78

10

5.40%

$0.79

06/12

06/27

Ross Stores

ROST

1.10%

$92.98

25

21.50%

$1.02

06/10

06/28

Service Corp International

SCI

1.63%

$44.26

9

20.30%

$0.72

06/13

06/28

Thanks for reading and happy investing!

Disclosure: I am/we are long LOW. 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.