14 Upcoming Dividend Increases Including Realty Income And W. P. Carey

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Includes: ADC, ARE, CAH, COR, FMBI, HCKT, LII, NFG, NHC, O, POR, RBC, SPY, TOWN, VNQ, WPC
by: Dividend Derek
Summary

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

14 increases for next week (up from five last week).

An average increase of 7.4%, with four having at least a 10% increase. Median increase of 4.94%.

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 2
Contender 5
Challenger 7

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
Portland General Electric Co (POR) 14 2.77 24-Jun-19 6.21% Contender
National Fuel Gas Company (NFG) 48 3.13 27-Jun-19 2.35% Champion
W.P. Carey Inc. REIT (WPC) 22 4.82 27-Jun-19 0.39% Contender
National HealthCare Corporation (NHC) 16 2.53 27-Jun-19 4.00% Contender
Regal Beloit Corporation (RBC) 15 1.5 27-Jun-19 7.14% Contender
Lennox International, Inc. (LII) 10 1.13 27-Jun-19 20.31% Contender
CoreSite Realty Corporation (COR) 10 4.15 27-Jun-19 18.45% Contender
Alexandria Real Estate Equities, Inc. (ARE) 9 2.68 27-Jun-19 3.09% Challenger
Towne Bank (TOWN) 8 2.62 27-Jun-19 12.50% Challenger
Agree Realty Corporation (ADC) 7 3.33 27-Jun-19 2.70% Challenger
First Midwest Bancorp, Inc. (FMBI) 7 2.7 27-Jun-19 16.67% Challenger
The Hackett Group, Inc. (HCKT) 6 2.08 27-Jun-19 5.88% Challenger
Realty Income Corporation (O) 27 3.71 28-Jun-19 2.71% Champion
Cardinal Health, Inc. (CAH) 24 4.26 28-Jun-19 0.99% 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 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
POR 0.3625 0.385 6.21%
NFG 0.425 0.435 2.35%
WPC 1.03 1.034 0.39%
NHC 0.5 0.52 4.00%
RBC 0.28 0.3 7.14%
LII 0.64 0.77 20.31%
COR 1.03 1.22 18.45%
ARE 0.97 1 3.09%
TOWN 0.16 0.18 12.50%
ADC 0.555 0.57 2.70%
FMBI 0.12 0.14 16.67%
HCKT 0.17 0.18 5.88%
O 0.221 0.227 2.71%
CAH 0.4763 0.481 0.99%

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
POR 55.62 41.88 55.78 22.53 31% Off Low 0% Off High
NFG 54.31 49.6 61.71 16 9% Off Low 12% Off High
WPC 85.66 62.12 86.41 28.23 36% Off Low 0% Off High
NHC 82.21 69.57 86.53 15.12 17% Off Low 4% Off High
RBC 80.02 66.04 87.31 13.47 21% Off Low 8% Off High
LII 271.43 177.36 287.42 28.28 51% Off Low 5% Off High
COR 117.47 82.64 120.93 54.2 39% Off Low 2% Off High
ARE 149.49 109.04 153.51 45.06 35% Off Low 2% Off High
TOWN 27.5 22.88 33.85 14.14 20% Off Low 18% Off High
ADC 68.45 50.72 70.26 39.3 33% Off Low 3% Off High
FMBI 20.71 18.1 27.7 12.71 14% Off Low 24% Off High
HCKT 17.28 15.16 22.84 23.58 13% Off Low 24% Off High
O 73.31 52.74 74.14 54.66 37% Off Low 1% Off High
CAH 45.05 42.01 58.31 436.06 7% Off Low 22% 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
WPC 4.82 1.2 2.1 5.1 7.7 10
CAH 4.26 2.9 8.7 10.2 17.5 14.5
COR 4.15 11.7 33.8 30.1 34.3
O 3.71 3.8 5 4.1 4.5 7.9
ADC 3.33 5 5 5.4 0.6 8.7
NFG 3.13 2.4 2.5 2.6 2.8 5.8
POR 2.77 6.4 6.6 5.2 3.9 8
FMBI 2.7 13.2 7.1 33.9 -10 36.6
ARE 2.68 6.4 6.6 8 1.5 10.7
TOWN 2.62 11.1 9.3 10.2 6.8 12.8
NHC 2.53 5.4 9.8 9.6 8.1 12.1
HCKT 2.08 6.7 17 26.2 28.3
RBC 1.5 8 6.3 6.7 5.7 8.2
LII 1.13 22.3 20.3 21.2 15.2 22.3

Bonus Charts

I'll briefly cover both Realty Income and W.P. Carey this week as they are dividend darlings in the REIT world.

(Source)

Both have performed exceptionally well this year, though they now sport historically low yields and appear moderately overvalued.

Looking at the scorecard from Simply Safe Dividends, both REITs score well in terms of safety and current yield at the expense of absolute growth.

Realty Income:

W.P. Carey:

(Source)

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
W.P. Carey Inc. REIT WPC 22 4.82 27-Jun-19 0.39% Contender
Realty Income Corporation O 27 3.71 28-Jun-19 2.71% Champion

Here are the high level stats covered once again for these two REITs.

Stock Returns

I ran a stock return calculation for O and WPC against both the S&P (SPY) and the Vanguard Real Estate ETF (VNQ) since June of 2010. WPC was the best performer followed by O, which both beat both of their benchmarks. Here are the investment results over time. WPC is the blue line that quick jumps out to an early lead and maintains it. O meanders above and below the S&P, which is clearly visible through some of its boom and bust price cycles.

(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.