19 Upcoming Dividend Increases Including 3 Dividend Kings

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Includes: BMI, CBOE, DOV, GPI, GS, K, KEY, MCK, MGEE, MLHR, MXIM, NDSN, RBA, SMG, SPY, STI, SWK, SWKS, UNP, WLK
by: Dividend Derek
Summary

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

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

An average increase of 9.98%, with six having at least a 10% increase. Median increase of 7.69%.

Nordson Corp., Dover Corp. and Stanley Black & Decker are all Dividend Kings with increases coming.

Goldman Sachs delivers an insanely impressive 47% dividend increase also.

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 3
Champion 2
Contender 6
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
Nordson Corporation (NDSN) 55 1.14 26-Aug-19 8.57% King
Westlake Chemical Corporation (WLK) 15 1.73 26-Aug-19 4.80% Contender
Scotts Miracle-Gro Company (The) (SMG) 9 2.08 26-Aug-19 5.45% Challenger
KeyCorp (KEY) 9 4.51 26-Aug-19 8.82% Challenger
Skyworks Solutions, Inc. (SWKS) 5 2.27 26-Aug-19 15.79% Challenger
Ritchie Bros. Auctioneers Incorporated (RBA) 18 2.03 27-Aug-19 11.11% Contender
Maxim Integrated Products, Inc. (MXIM) 18 3.5 28-Aug-19 4.35% Contender
Dover Corporation (DOV) 63 2.14 29-Aug-19 2.08% King
MGE Energy Inc. (MGEE) 43 1.85 29-Aug-19 4.44% Champion
Badger Meter, Inc. (BMI) 26 1.32 29-Aug-19 13.33% Champion
Union Pacific Corporation (UNP) 13 2.3 29-Aug-19 10.23% Contender
Goldman Sachs Group, Inc. (The) (GS) 9 2.49 29-Aug-19 47.06% Challenger
Cboe Global Markets, Inc. (CBOE) 9 1.21 29-Aug-19 16.13% Challenger
Herman Miller, Inc. (MLHR) 8 1.99 29-Aug-19 6.33% Challenger
SunTrust Banks, Inc. (STI) 8 3.72 29-Aug-19 12.00% Challenger
Stanley Black & Decker, Inc. (SWK) 52 1.99 30-Aug-19 4.55% King
Kellogg Company (K) 16 3.6 30-Aug-19 1.79% Contender
McKesson Corporation (MCK) 11 1.12 30-Aug-19 5.13% Contender
Group 1 Automotive, Inc. (GPI) 9 1.46 30-Aug-19 7.69%

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
NDSN 0.35 0.38 8.57%
WLK 0.25 0.262 4.80%
SMG 0.55 0.58 5.45%
KEY 0.17 0.185 8.82%
SWKS 0.38 0.44 15.79%
RBA 0.18 0.2 11.11%
MXIM 0.46 0.48 4.35%
DOV 0.48 0.49 2.08%
MGEE 0.338 0.3525 4.44%
BMI 0.15 0.17 13.33%
UNP 0.8 0.97 10.23%
GS 0.8 1.25 47.06%
CBOE 0.31 0.36 16.13%
MLHR 0.198 0.21 6.33%
STI 0.5 0.56 12.00%
SWK 0.66 0.69 4.55%
K 0.56 0.57 1.79%
MCK 0.39 0.41 5.13%
GPI 0.26 0.28 7.69%

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
NDSN 133.09 110.16 149.23 24.66 15% Off Low 9% Off High
WLK 60.77 57.2 98.99 12.95 6% Off Low 36% Off High
SMG 111.36 57.96 114.63 16.95 91% Off Low 2% Off High
KEY 16.4 13.66 21.67 9.68 19% Off Low 24% Off High
SWKS 77.58 60.12 94.39 14.63 28% Off Low 17% Off High
RBA 39.49 30.76 39.85 32.58 28% Off Low New High
MXIM 54.94 46.64 65.73 18.3 17% Off Low 16% Off High
DOV 91.71 65.83 103.47 22.4 39% Off Low 10% Off High
MGEE 76.31 56.64 76.48 29.69 33% Off Low 0% Off High
BMI 51.47 46.7 61.57 41.5 10% Off Low 15% Off High
UNP 168.52 128.08 180.54 19.9 31% Off Low 6% Off High
GS 200.69 151.7 245.08 8.39 32% Off Low 17% Off High
CBOE 119.16 87.87 122.88 32.98 34% Off Low 2% Off High
MLHR 42.24 28.66 46.3 15.62 47% Off Low 8% Off High
STI 60.27 46.05 75.02 10.56 30% Off Low 19% Off High
SWK 138.48 106.41 155.22 28.94 29% Off Low 11% Off High
K 63.34 51.34 74.98 25.19 22% Off Low 15% Off High
MCK 146.43 106.11 149.99 48.49 37% Off Low 1% Off High
GPI 76.97 48.69 89.85 9.64 58% Off Low 12% 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
KEY 4.51 48.7 24.9 21.3 -5.5 25.9
STI 3.72 36.4 25.1 38.8 -4.5 42.5
K 3.6 3.8 3.6 4.1 5.4 7.7
MXIM 3.5 27.5 14.9 12 8.5 15.5
GS 2.49 8.6 7.3 9 8.4 11.5
UNP 2.3 23.4 11.6 15.6 20.7 17.9
SWKS 2.27 16.7 21.5
DOV 2.14 4.4 5 9.4 9.7 11.6
SMG 2.08 4.9 5.5 7.2 15.8 9.3
RBA 2.03 2.9 5.3 6.7 7.5 8.7
SWK 1.99 6.6 6.4 5.4 7.4 7.4
MLHR 1.99 6.9 9.1 9.2 7.7 11.2
MGEE 1.85 4.8 4.6 4.3 3.3 6.2
WLK 1.73 14.8 9.9 17.4 24.5 19
GPI 1.46 7.2 7.8 9.9 8.3 11.3
BMI 1.32 14.3 12.8 9.9 10.8 11.2
CBOE 1.21 11.5 9.6 11.9 13.1
NDSN 1.14 9.6 11.6 14.7 13.1 15.8
MCK 1.12 19.5 10.7 9.9 12.9 11

Bonus

The three Dividend Kings of Nordson Corp., Dover Corp. and Stanley Black & Decker will share the spotlight this week. I'll provide the Fast Graphs for each with a little commentary. All three are in the industrial sector though in different industries.

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

Nordson shares seem to have gotten ahead of themselves in the past year or so on the tail of large double-digit earnings growth. With shares near 22x earnings and muted low-single-digit growth expected this year, shares appear to be in a "show me" holding period before deciding whether they will push upwards or not.

Dover has a P/E in the 16 range though historically speaking that looks slightly elevated. Like the other industries, be prepared for some cyclical earnings and take the forward earnings estimates with the whole salt shaker.

Of the three, Stanley Black & Decker appears to be the one closest to its historical valuation though the P/E is about the same as Dover.

Looking at the scorecard from Simply Safe Dividends, here's how the three rank.

(Source: Simply Safe Dividends)

All three score at least an 89 in dividend safety and also score at least an 80 in dividend growth. And all three suffer from low current yield. What has been great is that these companies understand the cyclical nature of their business and have been able to provide great dividend growth over long stretches of time without straining the balance sheet.

Here are the aggregate stats once more:

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
Nordson Corporation NDSN 55 1.14 26-Aug-19 8.57% King
Dover Corporation DOV 63 2.14 29-Aug-19 2.08% King
Stanley Black & Decker, Inc. SWK 52 1.99 30-Aug-19 4.55% King

Stock Returns

I ran a stock return calculation comparing these three to the S&P (SPY) since August 2010. Nordson handily beat the market with Dover also outperforming while Stanley trailed by some (this is a percentage error with the Dover stats).

Here's the look at the investments over time:

  • NDSN is the blue line
  • DOV is the black/gray line
  • SWK is the green line
  • S&P is the orange line

(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 SWK. 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.