- All stocks have at least five fiscal years of dividend growth history and come from the U.S. Dividend Champions List.
- Seven increases for next week (up from three last week).
- An average increase of 5.88% and a median increase of 4.26%.
This article series is designed to keep investors informed of upcoming dividend increases. Any company can increase a dividend, but these companies have a history of annual 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. Please perform due diligence before making any investing move especially during COVID-19.
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 Champions" 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.
As a point of clarification, companies are included that may not raise their dividend every calendar year, but the total annual dividend received will still be higher each year. One such example is Bank of America (BAC).
In the table here on SA, the annual dividend payout received by a shareholder increased for each year in this time frame. Thus, it is eligible for inclusion in the "CCC" list.
That said, it did pay out the same amount for eight quarters in a row, but again, the total annual amount increased each year.
What Is The Ex-Dividend Date?
The "ex-dividend" date is the date 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 the 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
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|
|The Travelers Companies, Inc.||(TRV)||16||2.87||9-Jun-20||3.66%||Contender|
|CNO Financial Group, Inc.||(CNO)||9||2.89||9-Jun-20||9.09%||Challenger|
|Chesapeake Utilities Corporation||(CPK)||17||1.79||12-Jun-20||8.64%||Contender|
|Independence Holding Company||(IHC)||7||1.43||12-Jun-20||10.00%||Challenger|
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|
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|
|TRV||114.34||76.99||155.09||11.77||46% Off Low||26% Off High|
|CNO||15.22||8.79||20.93||6.71||71% Off Low||26% Off High|
|FNV||131.37||75.93||152.7||145.81||71% Off Low||12% Off High|
|NDAQ||119.34||71.66||120.73||27.22||65% Off Low||New High|
|UGI||34.44||21.75||54.48||18.05||54% Off Low||37% Off High|
|CPK||90.5||69.47||101.29||24.58||30% Off Low||9% Off High|
|IHC||30.86||22||43.6||54.55||39% Off Low||29% Off High|
Tickers By Yield And Growth Rates
Some investors are more interested in the 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|
This week only UGI has a yield over 3% while TRV and CNO are in the upper 2.8% range. The others are in the 1%'s and FNV is sub 1%.
I put all of the companies on the list along with the S&P 500 into my stock return calculator to see a hypothetical investment result. The data go back to June of 2010.
The NASDAQ itself was the best performer returning over 22% annually while still providing the second most amount of dividends along the way. I guess in some ways it shouldn't be too surprising as it owns and operates an exchange.
CPK, NDAQ, IHC and FNV all outperformed the market in total return. CNO closely mirrored the performance and TRV and UGI brought up the rear. TRV did also provide the most amount of dividends along with its 11% annual return.
The NDAQ line (purple) was the ultimate winner, but for the last two years approximately, IHC was actually the top dog. It was only during the past few months of the coronavirus reset that it separated out these players a little bit more.
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.
This article was written by
Analyst’s Disclosure: I am/we are long TRV. 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.
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