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Summary Of Dividend Increases In 2019

by: FerdiS
Dividend growth investing, portfolio strategy, long-term horizon, value

I summarize dividend increases on a weekly basis. In 2019, I reported on more than 500 dividend increases. This article provides a summary.

Which companies announced the largest dividend increases?

Which sectors announced the largest increases?

What is the average dividend increase in 2019, and how does it compare to prior years?

dividend growth investing

This article presents a summary of dividend increases announced in 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 520 companies in 2019, several of which increased their dividends more than once in 2019.

Top Increases

Here are the top 10 dividend increases that were announced in 2019:

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

The top increases are dominated by stocks in the Financials sector. The Consumer Discretionary sector has two representatives in the top 10, while the Industrials and Information Technology each have one.

Independent Bank Group (IBTX) - Financials

IBTX operates as the bank holding company for Independent Bank, which provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. The company offers various deposit and loan products, as well as other financial services. IBTX was founded in 2002 and is headquartered in McKinney, Texas.

Goldman Sachs (GS) - Financials

GS operates as an investment banking, securities, and investment management company worldwide. It operates in four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The company serves corporations, financial institutions, governments, and individuals. GS was founded in 1869 and is headquartered in New York, New York.

Trinity Industries (TRN) - Industrials

Founded in 1933 and headquartered in Dallas, Texas, TRN is a diversified industrial company that owns businesses operating in the energy, chemical, agriculture, transportation, and construction sectors. The company’s segments include the Rail Group, Construction Products Group, Inland Barge Group, Energy Equipment Group, and Railcar Leasing and Management Services Group.

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. BAH 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.

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.

Primerica (PRI) - Financials

PRI, together with its subsidiaries, distributes financial products through licensed sales representatives to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. PRI was founded in 1927 and is headquartered in Duluth, Georgia.

Citizens Financial Group (CFG) - Financials

CFG operates as the bank holding company for Citizens Bank, National Association, and Citizens Bank of Pennsylvania. It provides retail and commercial banking products and services in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. CFG was founded in 1828 and is headquartered in Providence, Rhode Island.

Home Depot (HD) - Consumer Discretionary

Founded in 1978 and based in Atlanta, Georgia, HD is a home improvement retailer that sells an assortment of building materials, home improvement products, and lawn and garden products. HD provides installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers.

1st Source Corp. (SRCE) - Financials

SRCE operates as the bank holding company for 1st Source Bank, providing a range of financial products and services to individual and business clients in the United States. The company offers commercial and consumer banking services, trust and investment management services, and insurance. SRCE was founded in 1863 and is headquartered in South Bend, Indiana.

Wintrust Financial Corp. (WTFC) - Financials

WTFC operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The company provides various deposit, loan, and insurance products, as well as specialty finance services. WTFC was founded in 1992 and is headquartered in Rosemont, Illinois.

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:

In DivGro, I had 5 outsized increases, 21 large increases, 26 medium increases, 12 small increases, and 5 tiny increases (see the highlighted tickers in the table). The average increase of my DivGro stocks is 9.32%, and those stocks yield 2.91%, on average. Moreover, the average streak is 24.0 years.

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 with average streak is not perfect).

Other Statistics

The following table presents a summary of the average increase overall (i.e., for the 520 stocks included in this analysis) and by sector. Also included are the average yield and average streak:

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

Top Increases By Sector

Finally, below are the top dividend increases by sector. Note that the first column indicates the rank of each stock in the list of 520 stocks when sorted by decreasing dividend increase (%Incr).

Nexstar Media Group (NXST) - Communication Services

Founded in 1996 and headquartered in Irving, Texas, NXST operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community websites in medium-sized markets. NXST offers free over-the-air programming to television viewing audiences.

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.

Marathon Petroleum (MPC) - Energy

MPC refines, markets, sells, and transports petroleum products in the United States. The company’s Refining & Marketing segment refines crude oil and other feedstocks; its Speedway segment sells transportation fuels and convenience products; and its Midstream segment midstream operates energy infrastructure assets. MPC was incorporated in 2009 and is headquartered in Findlay, Ohio.

Independent Bank Group - Financials

See above.

Zoetis (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.

Trinity Industries - Industrials

See above.

Booz Allen Hamilton - Information Technology

See above.

Sherwin-Williams (NYSE:SHW) - Materials

See above.

American Tower Corp. (AMT) - Real Estate

AMT is a real estate investment trust that owns, develops, and operates multi-tenant communications sites across the globe. Its customers include wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies, and municipalities. AMT was founded in 1995 and is headquartered in Boston, Massachusetts.

UGI Corp. (UGI) - Utilities

UGI distributes, stores, transports, and markets energy products and related services. The company distributes propane throughout the United States. It also distributes liquid petroleum gas, natural gas, liquid fuels, and electricity, and operates several electric generation facilities. UGI was founded in 1882 and is based in King of Prussia, Pennsylvania.

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

Throughout 2019, I reported on dividend increases announced for 520 dividend growth stocks in the CCC list. This article provided a summary of these dividend increase announcements and some interesting statistics.

Below is a comparison with the statistics from the summary articles for 2017 and 2018:

Note that I did not track dividend increase announcements for all the dividend growth stocks in the CCC list. Rather, I used different screens through September 2019 to reduce the number of stocks under consideration. Therefore, the comparisons are not exactly apples-to-apples.

In October 2019, I abandoned the use of screens, and I now cover dividend increase announcements for all the dividend growth stocks in the CCC list.

Nevertheless, it appears that 2019's dividend increases generally are lower than those of 2018.

Thanks for reading, and have a happy, healthy, and prosperous new year!

As a bonus, here are the top 7 dividend increases by sector. As before, stocks in my portfolio are highlighted, and multiple increases are indicated by ✧ in the %Incr column.

Disclosure: I am/we are long AAPL, ABBV, ADM, ADP, AFL, AMGN, ANTM, APD, AVGO, BLK, CB, CMCSA, CMI, CSCO, CVX, D, DLR, GD, HD, HON, HRL, IBM, ICE, ITW, JNJ, JPM, KO, LMT, LOW, MA, MAIN, MCD, MDT, MMM, MO, MRK, MSFT, NEE, NKE, NNN, O, ORCL, PEP, PFE, PG, PM, PNW, ROST, RTN, SBUX, SKT, SNA, SPG, SWK, SYK, TJX, TROW, TRV, TXN, UNH, UNP, UPS, VLO, VZ, WBA, WFC, WPC, XEL, XOM. 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.