Dividend Increases: July 29-August 2, 2019 (Part 2: Remaining Sectors)

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Includes: BR, CAKE, CONE, EVA, FRT, LFUS, MCK, MDLZ, MXIM, TRNO
by: FerdiS
Summary

Companies can only increase their dividends regularly if they grow earnings sufficiently.

I write a weekly summary of dividend increase announcements.

Part 1 covered dividend increases of stocks in the Industrials, Materials, and Financials sectors. Part 2 covers the remaining sectors.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis. Companies can only raise their dividends regularly and sustainably if they grow earnings sufficiently.

I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:

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

Recently, 21 companies that declared dividend increases passed these screens. Part 1 presented dividend increases announced for stocks in the Industrials, Materials, and Financials sectors.

The table below presents a summary of increases of stocks in the remaining sectors.

The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context.)

Summary of Dividend Increases: July 29-August 2, 2019

Previous Post: Dividend Increases: July 22-26, 2019

Terreno Realty (TRNO)

Founded in 2009 and headquartered in San Francisco, CA, TRNO is a real estate investment trust that acquires, owns, and operates industrial real estate properties. TRNO owns properties in six major coastal markets, namely Los Angeles, New Jersey and New York City, San Francisco, Seattle, Miami, and Washington, DC, and Baltimore.

The company declared a quarterly dividend of 27¢ per share, an increase of 12.50% over the prior quarterly dividend. The dividend is payable on October 18 to shareholders of record on October 4. The stock will trade ex-dividend on October 3.

Littelfuse (LFUS)

LFUS designs, manufactures, and sells circuit protection, power control, and sensing products worldwide. The company operates through three segments - Electronics, Automotive, and Industrial - and sells its products through distributors, direct sales force, and manufacturers' representatives. LFUS was founded in 1927 and is headquartered in Chicago, Illinois.

The company declared a quarterly dividend of 48¢ per share, an increase of 11.63% over the prior quarterly dividend. The dividend is payable on September 5 to shareholders of record on August 22.

Broadridge Financial Solutions (BR)

BR provides investor communications and technology-driven solutions for the financial services industry in the United States, Canada, the United Kingdom, and internationally. Its customers include banks, broker-dealers, mutual funds, and corporate issuers globally. BR was founded in 1962 and is headquartered in Lake Success, New York.

The company announced a quarterly DIV increase of 11.34% to 54¢ per share. The first payment will be on October 3 to shareholders of record on September 13. The ex-dividend date is September 12.

Mondelez International (MDLZ)

MDLZ manufactures and markets snack food and beverage products worldwide. The company offers cookies, crackers, and salted snacks; chocolates; gums and candies; coffee and powdered beverages; and cheese and grocery products. Its brands include Nabisco, Oreo, Cadbury, Toblerone, Trident, and Halls. MDLZ was founded in 2000 and is based in Deerfield, Illinois.

On July 30, the board of directors declared a quarterly dividend of 28.5¢ per share. The new dividend represents an increase of 9.62%. The dividend is payable October 14, with an ex-dividend date of September 27.

Cheesecake Factory (CAKE)

CAKE operates restaurants and bakery production facilities, primarily in the United States. Its restaurants offer lunch and dinner, as well as Sunday brunch. The bakeries produce desserts for its restaurants, international licensees, and third-party bakery customers. CAKE was founded in 1972 and is headquartered in Agoura Hills, California.

Recently, CAKE increased its quarterly dividend by 9.09% to 36¢ per share. The dividend is payable on August 27 to shareholders of record on August 14. CAKE will trade ex-dividend on August 13.

CyrusOne (CONE)

CONE is a real estate investment trust that owns, operates, and develops enterprise-class, carrier-neutral, and multi-tenant data center properties. The company provides mission-critical data center facilities that protect and ensure the continued operation of information technology infrastructure. CONE was founded in 2012 and is headquartered in Dallas, Texas.

On Wednesday, July 31, CONE increased its quarterly dividend to 50¢ per share, an increase of 8.70%. The ex-dividend date is September 26, and the dividend will be paid on October 11 to shareholders of record on September 27.

McKesson (MCK)

MCK distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products. The company also provides specialty pharmaceutical solutions for manufacturers of pharmaceutical products, and medical-surgical supply distribution, logistics, and other services to healthcare providers. MCK was founded in 1833 and is headquartered in San Francisco, California.

Recently, the board of directors of MCK declared a quarterly dividend of 41¢ per share. The new dividend represents an increase of 5.13%. The ex-dividend date is August 30, and the dividend will be paid on October 1 to shareholders of record on September 3.

Maxim Integrated Products (MXIM)

Founded in 1983 and headquartered in San Jose, California, MXIM is engaged in designing, developing, manufacturing, and marketing various linear and mixed-signal integrated circuits. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. MXIM primarily serves automotive, communications and data center, computing, consumer, and industrial markets.

Recently, MXIM increased its quarterly dividend to 48¢ per share, an increase of 4.35% over the prior dividend of 46¢ per share. The ex-dividend date is August 28, and the dividend will be paid on September 13 to shareholders of record on August 29.

Federal Realty Investment Trust (FRT)

FRT owns, manages, develops, and redevelops retail and mixed-use properties. These properties are located primarily in affluent communities in select metropolitan markets in the Northeast and Mid-Atlantic regions of the USA and in California and South Florida. FRT was founded in 1962 and is headquartered in Rockville, Maryland.

The company's board of directors approved an increase in the quarterly dividend of 2.94% to $1.05 per share. All shareholders of record on September 23 will receive the new dividend on October 15.

Enviva Partners (EVA)

EVA produces and supplies utility-grade wood pellets. It serves utilities and large-scale power generators in the United Kingdom and other European markets. Enviva Partners GP, LLC operates as the general partner of the company. EVA was founded in 2013 and is based in Bethesda, Maryland.

The company announced a quarterly DIV increase of 2.33% to 66¢ per share. All shareholders of record on August 15 will receive the new dividend on August 29.

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

Below, I'm including charts from F.A.S.T. Graphs for three of this week's dividend raisers, CAKE, MCK, and MXIM.

In these charts, the black line represents the share price and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas, depending on the earnings growth rate achieved over the time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart.)

CAKE's price line (black) is above the primary valuation line (orange) and below the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in CAKE in January 2010 would have returned 8.7% on an annualized basis (with dividends included).

MCK's price line is below the stock's normal P/E ratio and below the primary valuation line. The stock is trading at a discount to fair value. An investment in MCK in April 2010 would have returned 22.7% on an annualized basis (with dividends included).

MXIM's price line is above the primary valuation line and above the stock's normal P/E ratio. The stock is trading at a premium to fair value. An investment in MXIM in July 2010 would have returned 15.5% on an annualized basis (with dividends included).

Upcoming Ex-Dividend Dates

As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is sorted by Ticker, and as before, Next Div is annualized. Please note that the table presents ex-dividend dates of stocks in all sectors except the Industrials, Materials, and Financials Sectors. See Part 1 for coverage of those sectors.

Summary of Upcoming Ex-Dividend Dates: August 6-19, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

Exxon Mobil

XOM

4.95%

$70.28

37

5.60%

$3.48

08/12

09/10

Arbor Realty Trust

ABR

9.43%

$12.30

8

14.40%

$1.16

08/14

09/03

Applied Industrial Technologies

AIT

2.22%

$55.82

10

5.50%

$1.24

08/14

08/30

Boeing

BA

2.48%

$331.06

8

28.70%

$8.22

08/08

09/06

BB&T

BBT

3.80%

$47.37

9

10.50%

$1.80

08/13

09/03

Berkshire Hills Bancorp

BHLB

3.09%

$29.81

5

4.10%

$0.92

08/07

08/22

BOK Financial

BOKF

2.60%

$76.99

14

4.30%

$2.00

08/09

08/27

Cohen & Steers

CNS

2.85%

$50.44

10

9.50%

$1.44

08/09

08/22

Columbia Banking System

COLB

3.25%

$34.46

9

19.50%

$1.12

08/06

08/21

Carlisle

CSL

1.46%

$137.09

42

12.90%

$2.00

08/19

09/03

Donaldson

DCI

1.79%

$46.80

33

8.40%

$0.84

08/12

08/29

First Interstate BancSystem

FIBK

3.22%

$38.52

10

15.70%

$1.24

08/07

08/21

Great Western Bancorp

GWB

3.94%

$30.48

5

N/A

$1.20

08/08

08/23

W.W. Grainger

GWW

2.14%

$268.83

48

8.30%

$5.76

08/09

09/01

Heritage Financial Corp.

HFWA

2.87%

$26.50

9

17.60%

$0.76

08/07

08/22

Home Bancshares

HOMB

2.88%

$18.06

9

26.00%

$0.52

08/13

09/04

Honeywell International

HON

2.02%

$162.01

8

12.70%

$3.28

08/15

09/06

International Paper Company

IP

4.98%

$40.20

9

9.30%

$2.00

08/14

09/16

Investors Bancorp

ISBC

3.99%

$11.02

7

37.10%

$0.44

08/08

08/23

Invesco

IVZ

7.22%

$17.17

10

7.00%

$1.24

08/14

09/03

Main Street Capital

MAIN

6.01%

$40.90

9

4.30%

$2.46

08/19

09/16

Moelis

MC

6.01%

$33.26

6

N/A

$2.00

08/08

09/27

Mobile Mini

MINI

3.55%

$30.97

6

N/A

$1.10

08/13

08/28

MSCI Inc.

MSCI

1.30%

$209.24

5

N/A

$2.72

08/15

08/30

Neenah Inc.

NP

2.95%

$61.08

9

18.60%

$1.80

08/15

09/04

Oshkosh Corp.

OSK

1.44%

$75.01

6

45.90%

$1.08

08/16

09/03

PACCAR Inc.

PCAR

1.99%

$64.43

9

6.40%

$1.28

08/13

09/04

Provident Financial Services

PFS

3.92%

$23.44

9

7.90%

$0.92

08/14

08/30

PPG Industries

PPG

1.84%

$110.96

48

9.00%

$2.04

08/09

09/12

Ryder System

R

4.64%

$48.23

15

10.30%

$2.24

08/16

09/20

Reinsurance Group of America

RGA

1.90%

$147.42

11

15.30%

$2.80

08/07

08/29

Rockwell Automation

ROK

2.57%

$150.80

9

11.80%

$3.88

08/09

09/10

Rollins

ROL

1.31%

$32.15

17

18.50%

$0.42

08/08

09/10

Reliance Steel & Aluminum

RS

2.28%

$96.64

9

9.70%

$2.20

08/15

09/06

Sandy Spring Bancorp

SASR

3.47%

$34.56

9

11.40%

$1.20

08/13

08/21

Selective Insurance Group

SIGI

1.04%

$77.01

5

7.30%

$0.80

08/14

09/03

Sonoco Products Company

SON

2.97%

$57.92

37

5.70%

$1.72

08/08

09/10

South State Corp.

SSB

2.31%

$74.35

8

13.30%

$1.72

08/08

08/16

Terex Corp.

TEX

1.63%

$27.01

7

51.60%

$0.44

08/09

09/19

United Technologies Corp.

UTX

2.34%

$125.75

25

5.30%

$2.94

08/15

09/10

Washington Federal, Inc.

WAFD

2.43%

$34.57

9

14.20%

$0.84

08/08

08/23

Wells Fargo

WFC

4.42%

$46.14

9

7.40%

$2.04

08/08

09/01

WestRock Company

WRK

5.17%

$35.17

10

26.90%

$1.82

08/08

08/20

WSFS Financial Corp.

WSFS

1.19%

$40.50

6

21.30%

$0.48

08/07

08/22

Wintrust Financial Corp.

WTFC

1.51%

$66.21

6

33.40%

$1.00

08/07

08/22

Zions Bancorporation

ZION

3.30%

$41.18

7

51.60%

$1.36

08/14

08/22

Thanks for reading and 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.