21 Upcoming Dividend Increases Including The #1 In Streak Length

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Includes: ABR, AWR, BBT, CAKE, CHCT, CHFC, DUK, EBMT, EVA, KR, MSCI, ODC, PBFX, R, RMD, SJM, SMBC, SPG, USPH, WTR, ZION
by: Dividend Derek
Summary

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

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

An average increase of 6.83%, with seven having at least a 10% increase. Median increase of 4.17%.

American States Water announced its 65th consecutive annual dividend hike, #1 on the entire streak list!

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 1
Champion 1
Contender 7
Challenger 12

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
BB&T Corporation (BBT) 9 3.82 13-Aug-19 11.11% Challenger
The Cheesecake Factory Incorporated (CAKE) 7 3.54 13-Aug-19 9.09% Challenger
American States Water Company (AWR) 64 1.52 14-Aug-19 10.91% King
Kroger Company (KR) 14 2.68 14-Aug-19 14.29% Contender
U.S. Physical Therapy, Inc. (USPH) 9 0.95 14-Aug-19 11.11% Challenger
ResMed Inc. (RMD) 8 1.21 14-Aug-19 5.41% Challenger
Arbor Realty Trust (ABR) 8 9.23 14-Aug-19 3.57% Challenger
Southern Missouri Bancorp, Inc. (SMBC) 8 1.77 14-Aug-19 15.38% Challenger
Chemical Financial Corporation (CHFC) 7 3.24 14-Aug-19 2.94% Challenger
Zions Bancorporation N.A. (ZION) 7 3.29 14-Aug-19 13.33% Challenger
PBF Logistics LP Common Units representing limited ... (PBFX) 6 9.95 14-Aug-19 0.98% Challenger
Enviva Partners, LP Common units representing limit... (EVA) 5 8.79 14-Aug-19 2.33% Challenger
Aqua America, Inc. (WTR) 27 2.23 15-Aug-19 6.85% Champion
J.M. Smucker Company (SJM) 22 3.16 15-Aug-19 3.53% Contender
Eagle Bancorp Montana, Inc. (EBMT) 20 2.19 15-Aug-19 2.70% Contender
Oil-Dri Corporation Of America (ODC) 17 3.07 15-Aug-19 4.17% Contender
Duke Energy Corporation (Holding Company) (DUK) 15 4.25 15-Aug-19 1.83% Contender
Simon Property Group, Inc. (SPG) 10 5.47 15-Aug-19 2.44% Contender
Community Healthcare Trust Incorporated (CHCT) 5 3.88 15-Aug-19 0.49% Challenger
MSCI Inc (MSCI) 5 1.25 15-Aug-19 17.24% Challenger
Ryder System, Inc. (R) 15 4.62 16-Aug-19 3.70% 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
BBT 0.405 0.45 11.11%
CAKE 0.33 0.36 9.09%
AWR 0.275 0.305 10.91%
KR 0.14 0.16 14.29%
USPH 0.23 0.3 11.11%
RMD 0.37 0.39 5.41%
ABR 0.15 0.29 3.57%
SMBC 0.13 0.15 15.38%
CHFC 0.34 0.35 2.94%
ZION 0.3 0.34 13.33%
PBFX 0.5 0.515 0.98%
EVA 0.635 0.66 2.33%
WTR 0.219 0.234 6.85%
SJM 0.85 0.88 3.53%
EBMT 0.0925 0.095 2.70%
ODC 0.24 0.25 4.17%
DUK 0.9275 0.945 1.83%
SPG 2 2.1 2.44%
CHCT 0.405 0.412 0.49%
MSCI 0.58 0.68 17.24%
R 0.54 0.56 3.70%

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 lows. They may provide a larger margin of safety and inflated yield.

Ticker Current Price 52-Week Low 52-Week High P/E Ratio % Off Low % Off High
BBT 47.14 40.68 53.08 11.82 13% Off Low 11% Off High
CAKE 40.63 39.8 55.63 17.34 New Low 27% Off High
AWR 80.38 58.26 81.15 37.87 33% Off Low New High
KR 23.9 20.7 32.74 9.73 6% Off Low 27% Off High
USPH 126.8 98.69 132.17 85.83 24% Off Low 4% Off High
RMD 128.98 90.64 133.17 46.29 39% Off Low 3% Off High
ABR 12.57 9.48 13.94 8.85 29% Off Low 9% Off High
SMBC 33.99 29.92 40 10.49 9% Off Low 17% Off High
CHFC 42.04 34.62 59.1 11.37 21% Off Low 26% Off High
ZION 41.36 38.08 54.76 10.15 6% Off Low 24% Off High
PBFX 20.71 19.17 23.69 12.94 8% Off Low 12% Off High
EVA 30.03 25.4 33.48 63.95 17% Off Low 10% Off High
WTR 42.07 32.09 42.32 46.61 27% Off Low 0% Off High
SJM 111.39 91.32 128.43 24.49 19% Off Low 13% Off High
EBMT 17.35 14.2 19.3 14.08 22% Off Low 8% Off High
ODC 32.87 24.25 42.32 21.51 34% Off Low 22% Off High
DUK 88.87 78 91.67 19.63 13% Off Low 2% Off High
SPG 153.54 150.8 191.49 21.88 New Low 19% Off High
CHCT 42.54 27.54 43.09 264.28 50% Off Low New High
MSCI 217.18 134.28 247.57 32.44 56% Off Low 12% Off High
R 48.5 44.8 79.95 8.08 5% Off Low 39% 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 + 5-year dividend growth rate.

Ticker Yield 1-Year DG 3-Year DG 5-Year DG 10-Year DG Chowder Rule
PBFX 9.95 5.9 11
ABR 9.23 36.1 19.1 14.4 -7.3 23.8
EVA 8.79 10.3 52.8
SPG 5.47 10.5 9.3 12.6 8.8 18.1
R 4.62 17.8 10.8 10.3 8.7 14.9
DUK 4.25 4.2 3.9 3.3 3 7.6
CHCT 3.88 2.6 45.9
BBT 3.82 20.2 13 10.5 -2 14.3
CAKE 3.54 17 19.3 19 22.5
ZION 3.29 136.4 67.8 51.6 -4.3 54.8
CHFC 3.24 12.7 7.4 7.3 0.5 10.5
SJM 3.16 6.5 7.6 8.2 10 11.4
ODC 3.07 4.4 4.7 4.9 5.7 8
KR 2.68 8.2 10.3 11.5 11.9 14.4
WTR 2.23 7.1 7.3 7.7 7.6 10
EBMT 2.19 7.4 6.2 4.8 3.4 7
SMBC 1.77 14.3 11.1 9.1 8.1 10.9
AWR 1.52 6.6 6.6 6.9 7.8 8.5
MSCI 1.25 45.5 33.9
RMD 1.21 5.9 7.5 11.4 12.6
USPH 0.95 19.5 15.3 18.1 19.1

Bonus

American States Water is the focus this week. Per the CCC list, this is the #1 company in terms of streak length with its 65th annual raise in a row. In case the name is not self-explanatory, AWR deals in the sexy business of providing water to California residents.

(Source: F.A.S.T. Graphs)

This is one of the few times I'll include a full 20-year history of a F.A.S.T. Graph, but there is one unmistakable trend. The share price has absolutely ballooned to monstrous proportions ever since coming out of the recession. Prior to 2015, shares usually traded around a P/E of 20, which was fair for a consistent dividend and earnings grower in a stable business. We've now seen the price come completely decoupled from the business since then, propelling shares to a P/E over 42 - an even steeper multiple than a Visa or Mastercard! That said, if you are buying today, buyer beware. This may be a great and steady business, but it seems perilously poised on the edge of P/E contraction at some point.

Looking at the scorecard from Simply Safe Dividends, AWR scores well in safety (65 years ought to count for something!) with an average growth rate and a poor yield rating. The yield shouldn't be surprising given the moon ride shares have been on; if shares fell 50%, the yield would only make its way back to 3%. The growth score should tick up, as the recent 10% hike is a bit higher than the raises have been over the past several years.

(Source: Simply Safe Dividends)

Here are the aggregate stats once more:

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
American States Water Company AWR 64 1.52 14-Aug-19 10.91% King

Stock Returns

I ran a stock return calculation comparing AWR to the S&P (SPY) since August 2010. AWR annihilated the market with a total return of 491% vs. 205%. Even with a low yield, it compounded quickly, and the dividends also outperformed the broader market. The annualized return was 21.8% vs. 13.2%.

Looking at the investment results over time, AWR essentially was always ahead of the market, and since 2015, the stock only expanded its lead.

(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 am/we are long SPG. 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.