Seeking Alpha

16 Upcoming Dividend Increases Including 10% From This Dividend Aristocrat

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Includes: AUB, BMRC, BMTC, BSRR, CASY, CFG, CLX, EPD, MATX, MPLX, MS, NNN, PSXP, TGE, UCFC, WES
by: Dividend Derek
Summary

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

16 increases for next week (up from 4 last week).

An average increase of 6.70%, with six having at least a 10% increase. Median increase of 5.1%.

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 is 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 3
Challenger 11

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
The Clorox Company (CLX) 42 2.59 30-Jul-19 10.42% Champion
National Retail Properties (NNN) 29 3.92 30-Jul-19 3.00% Champion
Enterprise Products Partners L.P. (EPD) 22 5.78 30-Jul-19 0.46% Contender
Western Midstream Partners, LP Common Units (WES) 7 8.12 30-Jul-19 1.31% Challenger
Phillips 66 Partners LP Common Units (PSXP) 7 6.37 30-Jul-19 1.18% Challenger
Citizens Financial Group, Inc. (CFG) 6 3.83 30-Jul-19 12.50% Challenger
Tallgrass Energy, LP Class A Shares (TGE) 5 10.04 30-Jul-19 1.89% Challenger
Morgan Stanley (MS) 5 3.08 30-Jul-19 16.67% Challenger
Casey's General Stores, Inc. (CASY) 20 0.79 31-Jul-19 10.34% Contender
Bryn Mawr Bank Corporation (BMTC) 8 2.82 31-Jul-19 4.00% Challenger
Matson, Inc. (MATX) 8 2.15 31-Jul-19 4.76% Challenger
Sierra Bancorp (BSRR) 7 2.97 31-Jul-19 5.56% Challenger
Bank of Marin Bancorp (BMRC) 15 1.9 1-Aug-19 10.53% Contender
Atlantic Union Bankshares Corporation (AUB) 8 2.66 1-Aug-19 8.70% Challenger
MPLX LP Common Units Representing Limited Partner (MPLX) 7 8.49 2-Aug-19 1.52% Challenger
United Community Financial Corp. (UCFC) 5 2.92 2-Aug-19 14.29% Challenger

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
CLX 0.96 1.06 10.42%
NNN 0.5 0.515 3.00%
EPD 0.4325 0.44 0.46%
WES 0.965 0.618 1.31%
PSXP 0.792 0.855 1.18%
CFG 0.27 0.36 12.50%
TGE 0.51 0.54 1.89%
MS 0.3 0.35 16.67%
CASY 0.29 0.32 10.34%
BMTC 0.25 0.26 4.00%
MATX 0.21 0.22 4.76%
BSRR 0.16 0.19 5.56%
BMRC 0.175 0.21 10.53%
AUB 0.23 0.25 8.70%
MPLX 0.6375 0.668 1.52%
UCFC 0.07 0.08 14.29%

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
CLX 163.54 129.34 167.7 26.95 26% Off Low 2% Off High
NNN 52.58 42.97 55.97 38.47 21% Off Low 6% Off High
EPD 30.47 23.33 30.87 14.79 30% Off Low 1% Off High
WES 30.41 28.22 53.44 20.38 7% Off Low 41% Off High
PSXP 53.72 40.76 55.02 13.25 31% Off Low 2% Off High
CFG 37.62 27.62 41.76 9.94 34% Off Low 9% Off High
TGE 21.51 20.05 26.35 19.66 6% Off Low 18% Off High
MS 45.49 36.74 51.36 9.83 22% Off Low 11% Off High
CASY 162.75 106.75 165.38 29.51 51% Off Low 1% Off High
BMTC 36.84 32.84 50.35 12.13 9% Off Low 26% Off High
MATX 40.95 30.6 41.96 16.17 32% Off Low 2% Off High
BSRR 25.61 22.68 31.19 11.86 9% Off Low 18% Off High
BMRC 44.12 38 45.13 17.69 13% Off Low 2% Off High
AUB 37.53 26.48 42.64 15.79 37% Off Low 12% Off High
MPLX 31.47 28.32 39.01 13.65 10% Off Low 19% Off High
UCFC 9.61 8.49 11.04 12.36 8% Off Low 13% Off High

Tickers by Yield and 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
TGE 10.04 47.5 104.7
MPLX 8.49 12.7 13.5 19.3 27.8
WES 8.12 13.7 17.9 41 49
PSXP 6.37 9.6 19.7 76.2 82.6
EPD 5.78 2.9 4.4 4.9 5.3 10.7
NNN 3.92 4.8 4.5 4 2.8 7.9
CFG 3.83 53.1 34.8
MS 3.08 22.2 26 40.6 0.2 43.7
BSRR 2.97 14.3 15.1 19.7 -0.6 22.7
UCFC 2.92 85.7 54.9 6.2
BMTC 2.82 9.3 6.4 6.4 5.7 9.3
AUB 2.66 8.6 9 10.3 1.7 13
CLX 2.59 13.4 7.2 6.6 8 9.2
MATX 2.15 5.1 5.4 5.8 8
BMRC 1.9 13.4 12.2 11.7 8.5 13.5
CASY 0.79 10 9.4 9.8 14.7 10.6

Bonus

The Clorox Company is the highlight this week. With 42+ years of dividend increases, Clorox delivers another strong hike with their 10% increase next week.

(Source)

Visually looking at the F.A.S.T. Graphs, shares appear to be vastly overvalued, currently sitting at all-time highs again. It's not particularly surprising given where the whole market currently sits. For existing holders, the 10% increase gives a nice reason to continue to hold, though it would be hard to fault someone for trimming at these levels. At 26x earnings, I'd want substantially higher growth expectations.

There was a very brief blip in April of 2018 where shares last appeared to be "reasonably valued." Even then, the P/E was still 19 and hard to remotely consider purchasing due to the lack of a margin of safety.

No growth is expected this year and moderate mid-single digit growth is projected for the next two years. Once again, I'm not sure what the upside is here and how much further multiple expansion can push this stock up. Otherwise, there seems to be a large downside risk from here to bring the valuation more in line with reality.

Looking at the scorecard from Simply Safe Dividends, Clorox scores well in safety and growth with a ding on current yield.

(Source)

Here are the aggregate stats once more:

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
The Clorox Company (CLX) 42 2.59 30-Jul-19 10.42% Champion

Stock Returns

I ran a stock return calculation comparing CLX to the S&P (SPY) since July of 2010. Clorox saw a return that edged out the S&P with a total return of 225% to 221%. Dividends received were higher for Clorox though. Stock returns meandered over time though they tracked pretty closely. It was the most recent trough and rise from April 2018 that saw Clorox edge out the S&P in terms of total return. Once again though, that was multiple expansion doing the lion's share of stock return and there seems to be substantial downside risk to bring the valuation in line with growth expectations.

(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.