Summary Of Dividend Increases In Q2-2019

Jul. 06, 2019 7:49 AM ETCAT, CCOI, CE, AMT, FRME, KR, LM, MAR, NTAP, POOL, PSX, TJX, UNH, WBS18 Comments
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FerdiS
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Summary

  • I summarize dividend increases of a selection of CCC stocks on a weekly basis.
  • This article provides a summary of 132 dividend increases covered in Q2-2019.
  • What is the average dividend increase in Q2-2019?
  • Which companies announced the largest increases?
  • Which sectors have the largest increases?

In this article, I summarize the dividend increases announced in the second quarter of 2019 (Q2-2019), as summarized in my weekly Dividend Increases article series. My weekly articles cover dividend increases for a selection of dividend growth stocks in the CCC list. The following screens determine the selection:

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

In preparing for this article, I excluded dividend increases of stocks not in the latest available CCC list (dated 06/28/19) and those that no longer pass the above screens.

Exactly 132 companies in the latest CCC list announced dividend increases in Q2-2019.

Top Increases

Here is a summary of the top 10 increases in Q2-2019:

Stocks I own in my DivGro portfolio are highlighted in the Ticker column.

Pool (POOL) - Consumer Discretionary

Founded in 1993 and headquartered in Covington, Louisiana, POOL distributes swimming pool supplies, equipment, and related leisure products in North America and internationally. POOL offers maintenance products, repair and replacement parts for pool equipment, packaged pool kits, pool equipment and components for new pool construction and the remodeling of existing pools, and irrigation and landscape products.

Webster Financial (WBS) - Financials

WBS is a bank holding company for Webster Bank, National Association, which provides financial services to individuals, families, and businesses in the United States. The company provides commercial, small business and consumer banking, mortgage lending, financial planning, and trust and investment services. WBS was founded in 1935 and is headquartered in Waterbury, Connecticut.

NetApp (NTAP) - Information Technology

NTAP is a hybrid cloud data services company headquartered in Sunnyvale, California. The company offers hybrid cloud data services to accelerate digital transformation and to simplify the management of applications and data across cloud and on-premises environments. The company also provides cloud Infrastructure solutions. NTAP was founded in 1992.

UnitedHealth (UNH) - Healthcare

Founded in 1974 and based in Minnetonka, Minnesota, UNH is a diversified health and well-being company with core capabilities in clinical expertise, advanced technology, and data and health information. UNH provides medical benefits to customers in the United States and in more than 125 other countries.

Caterpillar (CAT) - Industrials

CAT was founded in 1925 and is headquartered in Deerfield, IL. The company manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. CAT provides technology for construction, transportation, mining, forestry, energy, logistics, electronics, financing, and electric power generation.

CoreSite Realty (COR) - Real Estate

COR is a real estate investment trust that owns, acquires, constructs, and operates data centers in the United States. The company offers data center and interconnection solutions, as well as colocation and interconnection solutions for networks, cloud, and information technology service providers. COR was founded in 2010 and is headquartered in Denver, Colorado.

First Merchants (FRME) - Financials

FRME operates as the financial holding company for First Merchants Bank, which provides community banking services in Indiana, Illinois, and Ohio. The company accepts deposits and provides a variety of different loan products. It also provides safety deposit facilities. FRME was founded in 1893 and is headquartered in Muncie, Indiana.

TJX (TJX) - Consumer Discretionary

Founded in 1956 and based in Framingham, Massachusetts, TJX operates as an off-price apparel and home fashions retailer in the United States and internationally. The company sells family apparel, home fashions, seasonal items, jewelry, and other merchandise. TJX operates stores under various names, including T.J. Maxx, Marshalls, and Sierra Trading.

Legg Mason (LM) - Financials

LM is an asset management holding company with operations in the United States and the United Kingdom, and several other countries. The company provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investments. LM was founded in 1899 and is based in Baltimore, Maryland.

Marriott International (MAR) - Consumer Discretionary

MAR operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates its properties under 30 hotel brands including JW Marriott, The Ritz-Carlton, Bulgari, Sheraton, Westin, Renaissance, Le Meridien, Courtyard, Residence Inn, and Protea Hotels. MAR was founded in 1927 and is headquartered in Bethesda, Maryland.

The Financials and Consumer Discretionary sectors both have three stocks in the top 10 increases, while the Information Technology, Healthcare, Industrials, and Real Estate sectors each have one stock in the top 10.

Analysis of Increases

Here is a table of tickers in five different categories based on the percentage of each dividend increase. As above, the tickers of stocks in my portfolio are highlighted:

The following table presents a summary of average dividend increases by Increase Category, along with average dividend yield and average years of consecutive dividend increases:

Generally, there is an inverse correlation between the average increase and both average yield and average streak (though the correlation with average yield is not perfect).

Other Statistics

The following table presents a summary of average increase overall (i.e. for the 132 stocks included in this analysis) and by sector. Also included are the average yield and average streak:

In the table, the highest and lowest averages are indicated with green and red cells, respectively.

Top Increases By Sector

Finally, here are the top dividend increases by sector. As before, stocks in my portfolio are highlighted.Cogent Communications (CCOI) - Communication Services

Founded in 1999 and headquartered in Washington DC, CCOI provides high-speed Internet access and Internet protocol communications services to small- and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Asia. CCOI offers bandwidths up to 100 Gigabits per second.

Pool - Consumer Discretionary

See above.

Kroger (KR) - Consumer Staples

KR, along with its subsidiaries, operates retail food and drug stores, multi-department stores, jewelry stores and convenience stores across the United States. The company's banner brands include Kroger, Ralphs, Fred Meyer, and King Soopers, as well as Simple Truth and Simple Truth Organic. KR was founded in 1883 and is headquartered in Cincinnati, Ohio.

Phillips 66 (PSX) - Energy

PSX is an energy manufacturing and logistics company founded in 1875 and headquartered in Houston, Texas. The company operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. PSX processes, transports, stores and markets fuels and products globally. Phillips 66 Partners (PSXP) is the company's master limited partnership.

Webster Financial - Financials

See above.

UnitedHealth - Healthcare

See above.

Caterpillar - Industrials

See above.

NetApp - Information Technology

See above.

Celanese (CE) - Materials

Founded in 1918 and headquartered in Irving, Texas, CE is a technology and specialty materials company. The company manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products in North America, Europe, and Asia. CE's segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates.

CoreSite Realty (COR) - Real Estate

See above.

Concluding Remarks

I regularly report dividend increases for a selection of stocks in the CCC list. In Q2-2019, 132 stocks announced dividend increases. This article provided a summary of these dividend increases and some interesting statistics.

Below is a comparison with the statistics from the summary articles from last year and last quarter:

So far in 2019, the average dividend increase seems to be well below the average dividend increase of 2018.

Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Thanks for reading and happy investing!

This article was written by

FerdiS profile picture
26.31K Followers
FerdiS invests in dividend growth stocks and writes options to boost dividend income. He manages DivGro, a portfolio of mainly dividend growth stocks created in January 2013. With investment and trading experience spanning nearly 20 years, FerdiS enjoys writing articles about dividend growth investing, options trading, stock selection, portfolio management, and passive income generation. His DivGro blog hosts more than 1,000 posts and a live, public spreadsheet with full details of his DivGro portfolio, allowing readers to follow along in his investment journey. FerdiS is collaborating with the founders of Portfolio Insight, an online platform for portfolio management and investment analysis. Together, we maintain and publish Dividend Radar, a free spreadsheet of dividend growth stocks, on a weekly basis.

Disclosure: I am/we are long TJX, UNH. 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.

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