15 Upcoming Dividend Increases Including A Dividend King

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Includes: CCOI, CMI, CSL, DFS, EXPE, HCSG, HNNA, HSY, HVT, LFUS, MCHP, MFC, RECN, TGT, WBA
by: Dividend Derek
Summary

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

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

An average increase of 8.83%, with six having at least a 10% increase. Median increase of 7.06%.

Dividend King Target delivers its 52nd consecutive increase.

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 2
Contender 5
Challenger 7

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
Walgreens Boots Alliance, Inc. (WBA) 44 3.63 19-Aug-19 3.98% Champion
Carlisle Companies Incorporated (CSL) 42 1.43 19-Aug-19 25.00% Champion
Hennessy Advisors, Inc. (HNNA) 5 5.82 19-Aug-19 25.00% Challenger
Manulife Financial Corporation (MFC) 5 4.6 19-Aug-19 1.07% Challenger
Target Corporation (TGT) 52 3.22 20-Aug-19 3.13% King
Microchip Technology Incorporated (MCHP) 18 1.68 20-Aug-19 0.14% Contender
Cummins Inc. (CMI) 14 3.63 20-Aug-19 15.00% Contender
Resources Connection, Inc. (RECN) 10 3.36 21-Aug-19 7.69% Contender
Littelfuse, Inc. (LFUS) 9 1.26 21-Aug-19 11.63% Challenger
Discover Financial Services (DFS) 9 2.22 21-Aug-19 10.00% Challenger
Expedia Group, Inc. (EXPE) 8 1.07 21-Aug-19 6.25% Challenger
Healthcare Services Group, Inc. (HCSG) 17 3.54 22-Aug-19 0.63% Contender
The Hershey Company (HSY) 10 2.03 22-Aug-19 7.06% Contender
Cogent Communications Holdings, Inc. (CCOI) 8 4.45 22-Aug-19 3.33% Challenger
Haverty Furniture Companies, Inc. (HVT) 9 4.21 23-Aug-19 11.11% 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
WBA 0.44 0.4575 3.98%
CSL 0.4 0.5 25.00%
HNNA 0.11 0.1375 25.00%
MFC 0.019 0.189 1.07%
TGT 0.64 0.66 3.13%
MCHP 0.3645 0.366 0.14%
CMI 1.14 1.311 15.00%
RECN 0.13 0.14 7.69%
LFUS 0.43 0.48 11.63%
DFS 0.4 0.44 10.00%
EXPE 0.32 0.34 6.25%
HCSG 0.195 0.19875 0.63%
HSY 0.722 0.773 7.06%
CCOI 0.56 0.62 3.33%
HVT 1.18 0.2 11.11%

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 PE Ratio % Off Low % Off High
WBA 50.41 49.31 86.31 10.42 2% Off Low 39% Off High
CSL 139.66 92.16 146.16 20.24 51% Off Low 3% Off High
HNNA 9.45 9 15.27 6.19 3% Off Low 37% Off High
MFC 16.51 13.33 18.95 7.82 24% Off Low 12% Off High
TGT 81.88 60.15 90.39 14.74 35% Off Low 8% Off High
MCHP 86.88 60.7 101.35 61.07 42% Off Low 13% Off High
CMI 144.42 124.4 175.91 9.22 16% Off Low 15% Off High
RECN 16.67 12.72 19.5 17.34 30% Off Low 13% Off High
LFUS 152.03 151.77 228.94 23.85 New Low 32% Off High
DFS 79.39 54.36 92.98 9.71 46% Off Low 12% Off High
EXPE 126.56 108.11 144 31.88 16% Off Low 11% Off High
HCSG 22.58 22.52 48.73 20.63 New Low 52% Off High
HSY 152.44 98.01 156.69 26.89 55% Off Low 1% Off High
CCOI 55.75 42.4 64.24 84.39 31% Off Low 12% Off High
HVT 18.98 15.81 25.09 15.73 20% Off Low 24% 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
HNNA 5.82 40.6 36.8 37.5 21.2 43.3
MFC 4.6 11 11.3 11.8 -0.9 16.3
CCOI 4.45 17.8 13.2 22.8 27.1
HVT 4.21 33.3 26 24.6 13.5 28.7
WBA 3.63 8.4 6.4 7.3 15 10.8
CMI 3.63 5.5 8.1 14.6 22.2 18.1
HCSG 3.54 2.7 2.7 2.8 7.2 6.2
RECN 3.36 8.7 11.6 14 17.3
TGT 3.22 3.3 5.3 9.8 15.4 12.9
DFS 2.22 15.4 11.6 15.2 20.1 17.3
HSY 2.03 8.2 7.2 8.8 8.8 10.8
MCHP 1.68 0.6 0.5 0.6 0.9 2.2
CSL 1.43 6.9 11.9 12.9 9.9 14.3
LFUS 1.26 14.3 14 13.8 15
EXPE 1.07 6.9 13.9 17.2 18.3

Bonus

Target is in the spotlight this week. Being a Dividend King comes with certain honors and privileges after all! While the increase of 3% continues the trend of lower yearly increases, it is nevertheless the 52nd consecutive yearly increase provided by Target. There has been plenty of talk about the retail apocalypse and while that has been - and will continue to claim - retailers, Target appears to be on the winning side. There has been ample room for Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT) and Target to all exist. Target has been able to pivot into more e-commerce and in store shopping experiences to stay relevant.

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

Shares have not garnered much premium in the past decade as the e-commerce story globally has developed, though there have been some better times to buy shares. Currently shares appear to be fairly and fully valued in the 14-15x range, but there have been some opportunities to get shares at the 10-12x range.

Looking at the scorecard from Simply Safe Dividends, TGT scores in the upper quartile of dividend safety and an approximately average growth rate and yield.

(Source: Simply Safe Dividends)

Here are the aggregate stats once more:

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
Target Corporation TGT 52 3.22 20-Aug-19 3.13% King

Stock Returns

I ran a stock return calculation comparing TGT to the S&P (SPY) since August 2010. TGT lagged the market with a total return nearly half offered by the S&P (216% vs. 109%). Looking at the investment results over time, TGT lagged the whole time though there were a few periods in which it nearly caught up with the S&P.

(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 WBA. 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.