14 Upcoming Dividend Increases

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Includes: CTO, HFWA, LSTR, MMP, NEP, OKE, PAG, PPG, RGA, SPY, SSB, UGI, USDP, WAFD, WFC
by: Dividend Derek
Summary

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

14 increases for next week (down from 16 last week).

An average increase of 6.84%, with four having at least a 10% increase. Median increase of 5.91%.

Introduction

This article series is designed to keep investors informed of upcoming dividend increases. For dividend growth investors, this can be an opportunity to start or add to positions prior to a new increased payout. This can be especially important for retirees who live on dividend checks.

The lists I've compiled provide various stats for the stocks that are increasing their dividends next week.

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 4
Challenger 8

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
ONEOK, Inc. (OKE) 17 5.07 5-Aug-19 2.89% Contender
NextEra Energy Partners, LP Common Units (NEP) 6 4.14 5-Aug-19 4.15% Challenger
USD Partners LP Common Units (USDP) 5 12.24 5-Aug-19 0.55% Challenger
Magellan Midstream Partners L.P. Limited Partnership (MMP) 19 6.12 6-Aug-19 0.80% Contender
Reinsurance Group of America, Incorporated (RGA) 10 1.79 7-Aug-19 16.67% Contender
Heritage Financial Corporation (HFWA) 9 2.66 7-Aug-19 5.56% Challenger
UGI Corporation (UGI) 32 2.54 8-Aug-19 8.33% Champion
Penske Automotive Group, Inc. (PAG) 9 3.47 8-Aug-19 2.56% Challenger
Washington Federal, Inc. (WAFD) 9 2.3 8-Aug-19 5.00% Challenger
Wells Fargo & Company (WFC) 9 4.21 8-Aug-19 13.33% Challenger
South State Corporation (SSB) 8 2.15 8-Aug-19 7.50% Challenger
PPG Industries, Inc. (PPG) 47 1.74 9-Aug-19 6.25% Champion
Landstar System, Inc. (LSTR) 14 0.66 9-Aug-19 12.12% Contender
Consolidated-Tomoka Land Co. Common Stock (CTO) 7 0.7 9-Aug-19 10.00% 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
OKE 0.855 0.89 2.89%
NEP 0.45 0.502 4.15%
USDP 0.3575 0.365 0.55%
MMP 0.9775 1.013 0.80%
RGA 0.6 0.7 16.67%
HFWA 0.17 0.19 5.56%
UGI 0.26 0.325 8.33%
PAG 0.37 0.4 2.56%
WAFD 0.18 0.21 5.00%
WFC 0.43 0.51 13.33%
SSB 0.36 0.43 7.50%
PPG 0.48 0.51 6.25%
LSTR 0.165 0.185 12.12%
CTO 0.08 0.11 10.00%

Additional Metrics

Here are some additional metrics related to these companies, including yearly pricing action and the P/E ratio. This table is sorted 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. Scanning the list this week, nearly everything is within an ear shot of its high which suggests not a ton of opportunities here.

Ticker Current Price 52 Week Low 52 Week High PE Ratio % Off Low % Off High
OKE 70.23 50.26 71.47 23.3 34% Off Low New High
NEP 48.58 39.35 50.99 0 23% Off Low 2% Off High
USDP 11.93 9.15 11.94 20.33 30% Off Low New High
MMP 66.17 54.25 72.9 11.37 20% Off Low 8% Off High
RGA 156.06 127.84 163.14 0 20% Off Low 4% Off High
HFWA 28.52 26.95 37.29 16.13 4% Off Low 23% Off High
TBNK 28.78 24.78 31.44 12.83 16% Off Low 6% Off High
UGI 51.22 49.62 59.31 23.33 3% Off Low 13% Off High
PAG 46.09 38.49 53.84 8.53 18% Off Low 13% Off High
WAFD 36.59 24.67 37.25 14.21 47% Off Low New High
WFC 48.41 43.02 59.53 10.18 12% Off Low 18% Off High
SSB 80.06 56.55 88.7 15.65 40% Off Low 9% Off High
PPG 117.41 94.37 121.29 23.21 23% Off Low 2% Off High
LSTR 111.3 90.23 128.7 17.74 22% Off Low 12% Off High
CTO 62.79 49.23 67.02 11.12 25% Off Low 6% 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
USDP 12.24 4.8 8.3
MMP 6.12 7.7 9.2 12.6 10.8 18.8
OKE 5.07 19.3 10.1 20.2 16.9 25.5
WFC 4.21 6.5 3.6 7.4 2.4 11.6
NEP 4.14 14.9 23.7
PAG 3.47 12.7 14.7 18 14.7 21.6
HFWA 2.66 41.2 18.7 17.6 -0.7 20.3
UGI 2.54 4.6 4.7 6.7 7.3 9.2
WAFD 2.3 16.7 10.4 14.2 -1.8 16.5
SSB 2.15 4.5 12.1 13.3 7.3 15.3
RGA 1.79 20.9 16.3 15.3 37.7 16.9
PPG 1.74 9.4 9.5 9 5.9 10.7
CTO 0.7 50 50 35.1 -3.9 35.8
LSTR 0.66 65.8 28.1 20.3 15.1 21

Bonus

With 47+ years of dividend increases under their belt, PPG is in the spotlight this week. It is a juggernaut in the sexy world of paints and industrial coatings.

(Source)

Looking at the F.A.S.T. Graph, there are a few pieces to this story. Coming out of the recession, earnings grew sharply which sent shares soaring through 2014.

In fact, buying at the peak of 2014, you are about even over the past five years including reinvested dividends. Since that point, shares have meandered through a tight range as the rapid earnings growth slowed. Currently sitting at 19x earnings, shares seem to be on the upper end of what may be called "fair value". Earnings growth is expected to be in the mid-single digits for the FY.

Analysts are pegging growth to be double digit for both FY '20 and '21 though that may be optimistic. Historically analysts have a mixed bag when making their future predictions, so as always, take it with a grain of salt.

Looking at the scorecard from Simply Safe Dividends, PPG scores well in safety and growth with a poor score on current yield. It shouldn't be surprising, particularly in a cyclical industry with such a long dividend growth history. With a forward yield of approximately 1.75%, shares rank fairly lowly in the total universe of dividend stocks.

(Source)

Here are the aggregate stats once more:

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
PPG Industries, Inc. PPG 47 1.74 9-Aug-19 6.25% Champion

Stock Returns

I ran a stock return calculation comparing PPG to the S&P (SPY) since August of 2010. PPG did beat the market with a total return of 288% to 220%. That does include the stale past five years! And even with a low yield, dividends received were greater for PPG as well. Looking at the investment results over time, PPG took an early lead and maintained it the entire time. You can visually see the peak in the blue line by mid-2015 as the stock had reached its peak. It eventually ticked up recently, but clearly with the rapid earnings growth over, it did not garner the same attention.

(Courtesy: Custom Stock Alerts)

Conclusion

I hope you 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.