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Summary Of Dividend Increases In Q4 2019

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Includes: ATO, AVGO, BAH, BCPC, CCBG, CDW, DEI, ENB, HII, MA, SFBS, SHEN, SYY, VAC, WEN, ZTS
by: FerdiS
FerdiS
Dividend growth investing, portfolio strategy, long-term horizon, value
Summary

I cover dividend increase announcements on a weekly basis.

This article provides a summary of 149 dividend increases announced in Q4 2019.

Which companies and sectors announced the largest increases?

What is the average dividend increase in Q4 2019?

In this article, I summarize the dividend increases announced in the fourth quarter of 2019 (Q4 2019) as covered in my weekly Dividend Increases article series. These articles cover dividend increases announced for dividend growth stocks in the Dividend Champions List (CCC list).

In preparing for this article, I excluded dividend increases of stocks not in the latest available CCC list (dated 12/31/19). I covered dividend increases announced by 149 companies in Q4 2019.

Top Increases

Here is a summary of the top 10 increases in Q4 2019:

Stocks I own in my DivGro portfolio are highlighted in the Ticker column.

CDW Corp. (CDW) - Information Technology

Founded in 1984 and is based in Lincolnshire, Illinois, CDW provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. CDW offers discrete hardware and software products, as well as integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration.

Broadcom (AVGO) - Information Technology

AVGO designs, develops, and supplies a range of semiconductor devices for use in a variety of applications, including enterprise and data center networking, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation, alternative energy systems, and electronic displays. AVGO is based in San Jose, California.

Zoetis Inc. (ZTS) - Health Care

ZTS discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It markets its products to veterinarians, livestock producers, and retail outlets, as well as third-party veterinary distributors. ZTS was founded in 1952 and is headquartered in Parsippany, New Jersey.

Mastercard (MA) - Information Technology

MA, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers payment solutions and services under the Mastercard, Maestro, and Cirrus brands. MA was founded in 1966 and is headquartered in Purchase, New York.

Wendy's (WEN) - Consumer Discretionary

Founded in 1969 and headquartered in Dublin, Ohio, WEN is the world's third-largest quick service hamburger company. The company operates, develops, and franchises quick service restaurants in the United States and internationally. WEN’s restaurant system included franchise and company-operated restaurants in the United States and about 30 countries and U.S. territories.

Marriott Vacations Worldwide (VAC) - Consumer Discretionary

Headquartered in Orlando, Florida, VAC develops, markets, sells, and manages vacation ownership products under the Marriott Vacation Club, Grand Residences by Marriott, Marriott Vacation Club Pulse, and The Ritz-Carlton Destination Club brands. VAC is involved in financing consumer purchases of vacation ownership products.

Huntington Ingalls Industries (HII) - Industrials

Founded in 1886 and headquartered in Newport News, Virginia, HII designs, builds, overhauls, and repairs military ships in the United States. The company operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. HII designs and builds both non-nuclear and nuclear-powered ships, and provides refueling, overhaul, and inactivation services.

Capital City Bank (CCBG) - Financials

CCBG operates as the bank holding company for Capital City Bank, which provides a range of banking and banking-related services to individual and corporate clients in Florida, Georgia, and Alabama. The company offers various deposit and loan products, as well as asset management services. CCBG was founded in 1895 and is headquartered in Tallahassee, Florida.

Booz Allen Hamilton (BAH) - Information Technology

Founded in 1914 and headquartered in McLean, Virginia, BAH provides management and technology, consulting, and engineering services to governments, corporations, and not-for-profit organizations in the United States and internationally. The company assists clients in designing cloud architecture solutions, selecting the data suitable for storage in the cloud, and developing analytical solutions to gain insights from large data.

ServisFirst Bancshares (SFBS) - Financials

SFBS operates as the bank holding company for ServisFirst Bank, which provides banking services to individual and corporate customers in the United States. It provides various deposit and lending products, as well as onsite and online banking services. SFBS was founded in 2005 and is headquartered in Birmingham, Alabama.

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

Analysis of Increases

Here is a table of tickers in 5 different categories based on the percentage of each dividend increase. As above, the tickers of stocks in my portfolio are highlighted:

The following table presents a summary of average dividend increases by Increase Category, along with average dividend yield and average years of consecutive dividend increases:

Generally, there is an inverse correlation between the average increase and both average yield and average streak (though the inverse correlation is not perfect in the case of the average streak).

Other Statistics

The following table presents a summary of the average overall increase (i.e., for the 149 stocks included in this analysis) and by sector. Also included are the average yield and average streak, overall and by sector:

In the table, the highest and lowest averages are indicated with green and red cells, respectively.

Top Increases By Sector

Finally, here are the top dividend increases by sector.

Shenandoah Telecommunications (SHEN) - Communication Services

Founded in 1902 and headquartered in Edinburg, Virginia, SHEN provides wireless, cable, and wireline telecommunications services to customers and other telecommunications providers. The company operates in three segments: Wireless, Cable, and Wireline. SHEN provides its products and services under the Sprint and Shentel brands.

Wendy's - Consumer Discretionary

See above.

Sysco (SYY) - Consumer Staples

SYY markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industries. The company provides products and related services to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. SYY was founded in 1969 and is headquartered in Houston, Texas.

Enbridge (ENB) - Energy

Founded in 1949 and headquartered in Calgary, Canada, ENB is an energy transportation and distribution company with operations in the United States, Canada, and internationally. The company operates the world's longest crude oil and liquids pipeline system. ENB owns and operates Canada's largest natural gas distribution company.

Capital City Bank - Financials

See above.

Zoetis - Health Care

See above.

Huntington Ingalls Industries - Industrials

See above.

CDW - Information Technology

See above.

Balchem Corp. (BCPC) - Materials

Founded in 1967, BCPC develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally. The company operates in the Human Nutrition & Health, Animal Nutrition & Health, Specialty Products, and Industrial Products segments. BCPC is headquartered in New Hampton, New York.

Douglas Emmett (DEI) - Real Estate

Headquartered in Santa Monica, California, DEI is a REIT that owns and operates office and multifamily properties in Southern California and in Honolulu, Hawaii. DEI acquires, develops, owns, and manages office real estate and multifamily real estate in high-barrier-to-entry submarkets that exhibit strong economic characteristics and inherent supply constraints.

Atmos Energy (ATO) - Utilities

Founded in 1906 and headquartered in Dallas, Texas, ATO and its subsidiaries are engaged in the distribution, transmission, and storage of natural gas in the United States. The company delivers natural gas to residential, commercial, public authority, and industrial customers in nine states in the southern USA. ATO also operates intrastate gas pipelines in Texas.

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

Concluding Remarks

Every week, I summarize dividend increase announcements for dividend growth stocks in the CCC list. In Q4 2019, I covered 149 stocks that announced dividend increases. This article provides a summary and some interesting statistics.

Below is a comparison with the statistics from the summary articles from last year, as well as Q1 2019, Q2 2019, and Q3 2019:

The average dividend increases in 2019 are well below the average dividend increase of 2018.

Thanks for reading, and happy investing!

Disclosure: I am/we are long ABBV, ADP, AMGN, AVGO, HRL, MA, MRK, NKE, O, PFE, PNW, SBUX, SNA, SYK, WPC. 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.