Seeking Alpha

Dividend Increases: September 30-October 4, 2019

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Includes: AFG, CVGW, NWN, OZK, RPM
by: FerdiS
Summary

This article series provides a weekly summary of dividend increase announcements.

Monitoring dividend increases helps me to identify candidate stocks for further analysis.

As a bonus, I include ex-dividend dates for the next two weeks.

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 that regularly increase dividends show confidence in the potential growth of future earnings.

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

This week, five companies that announced dividend increases passed these screens.

The following table provides a summary of these increases.

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: September 30-October 4, 2019

Previous Post: Dividend Increases: September 16-20, 2019

American Financial (AFG)

AFG is an insurance holding company based in Cincinnati, Ohio. The company provides property and casualty insurance in the United States and sells these products through independent insurance agents and brokers, as well as through employee agents. It also provides traditional fixed and fixed-indexed annuities. AFG was founded in 1872.

The company announced a quarterly dividend increase of 12.50% to 45¢ per share. The quarterly dividend will be paid on October 25 to shareholders of record on October 15. The ex-dividend date is October 11.

Calavo Growers (CVGW)

CVGW markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers. It operates in three segments: Fresh Products, Calavo Foods, and RFG. CVGW was founded in 1924 and is headquartered in Santa Paula, California.

The company announced an increase of its annual dividend of 10.00% to $1.10 per share. The dividend is payable on December 6 to shareholders of record on November 15.

Bank OZK (OZK)

Founded in 1981 and headquartered in Little Rock, Arkansas, OZK provides deposit services, loan products, mortgage lending, treasury management services, and trust and wealth management services. OZK serves businesses, individuals, and non-profit and governmental entities in Arkansas, Georgia, North and South Carolina, Texas, Florida, Alabama, New York, and California.

The company announced a quarterly dividend increase of 4.17% to 25¢ per share. OZK will trade ex-dividend on October 10. The dividend is payable on October 18, to shareholders of record on October 11.

RPM International (RPM)

Founded in 1947 and headquartered in Medina, Ohio, RPM manufactures, markets, and sells specialty chemical products, including paints, protective coatings, roofing systems, sealants, and adhesives. The company markets its products worldwide, focusing primarily on industrial, specialty and consumer markets. RPM has manufacturing facilities in approximately 120 locations.

The company announced a quarterly dividend increase of 2.86% to 36¢ per share. The dividend is payable on October 31 to shareholders of record on October 15.

Northwest Natural (NWN)

NWN is engaged in the storage and distribution of natural gas in the United States. The company has operations in Oregon, Washington, and California and conducts businesses through NW Natural and its subsidiaries. NWN was founded in 1859 and is headquartered in Portland, Oregon.

The company increased its quarterly dividend by 0.53%, from 47.50¢ per share to 47.75¢ per share. The dividend is payable on November 15 to shareholders of record on October 31.

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, AFG, OZK, and RPM.

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).

AFG's price line (black) is below the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at about fair value. An investment in AFG in January 2010 would have returned 16.4% on an annualized basis (with dividends included).

OZK'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 OZK in January 2010 would have returned 15.5% on an annualized basis (with dividends included).

RPM'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 RPM in June 2010 would have returned 15.4% 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.

Summary of Upcoming Ex-Dividend Dates: October 8-21, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

AbbVie

ABBV

5.82%

$73.53

7

17.50%

$4.28

10/11

11/15

Abbott Laboratories

ABT

1.61%

$79.28

6

14.90%

$1.28

10/11

11/15

Accenture

ACN

0.87%

$184.01

15

9.90%

$1.60

10/16

11/15

American Financial

AFG

1.79%

$100.81

13

12.50%

$1.80

10/11

10/25

Apogee Enterprises

APOG

1.92%

$36.50

8

11.80%

$0.70

10/18

11/05

Banner

BANR

3.15%

$52.03

7

27.20%

$1.64

10/08

10/18

Saul Centers

BFS

3.95%

$53.69

6

7.60%

$2.12

10/16

10/31

Brady

BRC

1.70%

$51.27

34

1.70%

$0.87

10/09

10/31

Cracker Barrel Old Country Store

CBRL

3.26%

$159.27

17

14.40%

$5.20

10/17

11/05

City

CHCO

3.06%

$74.50

8

5.50%

$2.28

10/11

10/31

Foot Locker

FL

3.72%

$40.86

9

11.50%

$1.52

10/17

11/01

H.B. Fuller

FUL

1.42%

$45.14

50

9.80%

$0.64

10/16

10/31

General Dynamics

GD

2.29%

$178.43

28

10.60%

$4.08

10/10

11/15

Graco

GGG

1.46%

$43.86

22

9.60%

$0.64

10/18

11/06

Gentex

GNTX

1.79%

$25.71

9

9.40%

$0.46

10/08

10/23

Hormel Foods

HRL

1.96%

$42.96

53

17.10%

$0.84

10/18

11/15

IDEX

IEX

1.30%

$153.59

10

13.30%

$2.00

10/15

10/31

Quaker Chemical

KWR

1.00%

$154.40

12

7.90%

$1.54

10/16

10/31

Legg Mason

LM

4.57%

$35.01

9

19.90%

$1.60

10/09

10/28

Lincoln National

LNC

2.74%

$54.05

9

22.40%

$1.48

10/09

11/01

Life Storage

LSI

3.72%

$107.67

6

14.60%

$4.00

10/11

10/28

Mastercard

MA

0.49%

$271.46

8

36.60%

$1.32

10/08

11/08

Mid-America Apartment Communities

MAA

2.86%

$134.12

9

5.80%

$3.84

10/11

10/31

Main Street Capital

MAIN

5.85%

$42.02

9

4.30%

$2.46

10/17

11/15

Masco

MAS

1.29%

$41.85

6

7.70%

$0.54

10/10

11/12

McGrath RentCorp

MGRC

2.28%

$65.66

27

6.00%

$1.50

10/16

10/31

Marsh & McLennan

MMC

1.90%

$95.58

10

10.50%

$1.82

10/10

11/15

Owens Corning

OC

1.46%

$60.08

6

N/A

$0.88

10/11

11/04

OGE Energy

OGE

3.56%

$43.49

13

10.30%

$1.55

10/09

10/30

Oracle

ORCL

1.77%

$54.20

11

12.60%

$0.96

10/09

10/24

Oxford Industries

OXM

2.15%

$68.72

9

13.30%

$1.48

10/17

11/01

Bank OZK

OZK

3.94%

$25.39

23

17.20%

$1.00

10/10

10/18

PNC Financial Services

PNC

3.35%

$137.23

9

14.60%

$4.60

10/16

11/05

Pentair

PNR

2.04%

$35.28

43

1.80%

$0.72

10/17

11/01

RPM International

RPM

2.17%

$66.36

45

7.40%

$1.44

10/11

10/31

Raytheon

RTN

1.96%

$192.07

15

9.60%

$3.77

10/08

11/07

SYNNEX

SNX

1.33%

$112.86

6

N/A

$1.50

10/10

10/25

AT&T

T

5.51%

$37.03

35

2.10%

$2.04

10/09

11/01

Trinity Industries

TRN

4.22%

$16.12

9

15.80%

$0.68

10/11

10/31

UDR

UDR

2.80%

$48.92

9

6.70%

$1.37

10/09

10/31

Verizon Communications

VZ

4.16%

$59.07

15

2.70%

$2.46

10/09

11/01

Watsco

WSO

3.85%

$166.41

6

37.20%

$6.40

10/11

10/31

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.