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|
|Donaldson Company, Inc.||(DCI)||32||1.72||12-Jun-19||10.53%||Champion|
|Saratoga Investment Corp New||(SAR)||5||8.89||12-Jun-19||1.85%||Challenger|
|Leggett & Platt, Incorporated||(LEG)||48||4.26||13-Jun-19||5.26%||Champion|
|Chesapeake Utilities Corporation||(CPK)||16||1.75||13-Jun-19||9.46%||Contender|
|Extra Space Storage Inc||(EXR)||10||3.38||13-Jun-19||4.65%||Contender|
|El Paso Electric Company||(EE)||9||2.34||13-Jun-19||6.94%||Challenger|
|Preferred Apartment Communities, Inc.||(APTS)||9||6.6||13-Jun-19||0.77%||Challenger|
|Sotherly Hotels Inc.||(SOHO)||9||7.32||13-Jun-19||4.00%||Challenger|
|Hawthorn Bancshares, Inc.||(HWBK)||8||1.79||13-Jun-19||20.00%||Challenger|
|Unity Bancorp, Inc.||(UNTY)||7||1.59||13-Jun-19||14.29%||Challenger|
|Carolina Financial Corporation||(CARO)||7||1.06||13-Jun-19||12.50%||Challenger|
|United Community Banks, Inc.||(UCBI)||6||2.44||13-Jun-19||6.25%||Challenger|
|First Financial Corporation Indiana||(THFF)||31||2.61||14-Jun-19||1.96%||Champion|
|Stock Yards Bancorp, Inc.||(SYBT)||10||3.03||14-Jun-19||4.00%||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 before 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|
|DCI||48.72||40.27||59.43||20.48||16% Off Low||18% Off High|
|FNV||77.56||58.26||78.89||103.98||33% Off Low||New High|
|SAR||24.76||18.6||28.3||9.58||33% Off Low||12% Off High|
|LEG||37.59||33.48||46.71||17.54||10% Off Low||19% Off High|
|UGI||52.54||48.17||59.31||24.36||8% Off Low||10% Off High|
|CPK||92.77||73.55||95.6||26.45||26% Off Low||1% Off High|
|EXR||106.37||83.7||109.81||33.16||27% Off Low||New High|
|EE||65.72||47.99||66.83||27.43||36% Off Low||1% Off High|
|MEOH||43.81||41.41||83.23||7.73||3% Off Low||47% Off High|
|APTS||15.9||13.14||18.6||0||21% Off Low||13% Off High|
|SOHO||7.1||5.43||7.62||0||30% Off Low||6% Off High|
|HWBK||26.81||20.05||28.62||12.18||33% Off Low||6% Off High|
|NDAQ||92.76||75.49||96.84||30.48||23% Off Low||1% Off High|
|UNTY||20.16||16.74||25.5||9.96||20% Off Low||20% Off High|
|CARO||34.05||27.62||45.58||12.55||22% Off Low||25% Off High|
|UCBI||27.9||20.23||34.18||12.94||35% Off Low||19% Off High|
|THFF||39.83||37.41||53.05||10.28||4% Off Low||25% Off High|
|SYBT||34.35||28.02||41||13.63||21% Off Low||16% 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|
Leggett & Platt looks interesting this week. It produces a variety of components for various industries such as bedding. Check out its website for more info. In any event, it looks interesting for numerous reasons:
- 48-year dividend growth history (two away from being a Dividend King)
- 4.25% forward yield on the heels of a 5.25% increase
- Member of the Dividend Aristocrats
- Trading at a discount to its historically earned P/E ratio
The blue line from the Fast Graph shows the 18.5x P/E ratio shares have averaged over the past two decades. Today shares are closer to 15, which is about a 20% discount, though no earnings growth is expected this year, which makes the discount look justified. There is upside should earnings growth pick back up.
Looking at the scorecard from Simply Safe Dividends, LEG scores above average in all three categories, which is impressive. The safety score is dinged somewhat because of a little bit of a higher payout ratio coupled with a slightly elevated debt/cap, which is also seen in the Fast Graph.
On the other hand, you are granted a higher yield of 4.25% and some decent historical growth rates.
|Ticker||Yield||1 Yr DG||3 Yr DG||5 Yr DG||10 Yr DG||Chowder Rule|
Running a stock return calculation against the S&P (SPY) since June of 2010, LEG lagged the market (10.35% versus 13.8% annualized). If income is your prime focus, you've received nearly double the dividends than the market would otherwise offer. What isn't fully captured in the absolute investment results is there were clear times when shares were overvalued. This becomes more apparent when looking at the separation of LEG (blue line) from SPY (black line) from 2015 onwards. This meshes with the Fast Graph where shares traded at about a 25% premium to their "normal" value. An astute investor could have seen this and exited with a handsome return and dramatically different end results.
(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.