Dividend Increases: July 31-August 6, 2021

Aug. 11, 2021 9:00 AM ETCCOI, CHE, CSL, DOV, FNF, FRT, FRT.PC, ITW, KLAC, KWR, MCHP, NEU, TRNO, WTW16 Comments25 Likes
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FerdiS
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Summary

  • This weekly article series provides a summary of dividend changes.
  • A summary table presents relevant data and key statistics of dividend increases.
  • We highlight one of the stocks and present performance, valuation, and earnings charts.

stock market investment graph with indicator and volume data.
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We monitor dividend changes of stocks in Dividend Radar, a weekly automatically generated spreadsheet listing stocks with dividend streaks of five years or more. The Dividend Radar spreadsheet separates stocks into categories three categories: Champions (with increase streaks of 25+ years), Contenders (10-24 years), and Challengers (5-9 years).

Source: Created by the Author

In the last week, thirteen companies in Dividend Radar announced dividend increases, including one of the stocks I hold in my portfolio. Note there were no dividend cuts or suspensions announced for Dividend Radar stocks during this period.

The following table presents a summary of the dividend increases. The table is sorted into sections for Champions, Contenders, and Challengers, and then by the percentage increase, (%Incr). Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for a recent price and Yrs are years of consecutive dividend increases.

Summary of Dividend Increases: July 31-August 6, 2021
Previous Post: Dividend Increases: July 24-30, 2021

Source: Created by the Author from data in Dividend Radar.

The following dividend increase data are sorted alphabetically by ticker.

Company descriptions are the Author's summary of company descriptions sourced from FinViz.

Cogent Communications Holdings, Inc. (CCOI)

Founded in 1999 and headquartered in Washington, D.C., CCOI provides high-speed Internet access and Internet protocol communications services to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Asia. CCOI offers bandwidths up to 100 Gigabits per second.

  • On Aug 5, CCOI declared a quarterly dividend of 80.5¢ per share.
  • This is an increase of 3.21% from the prior dividend of 78¢.
  • Payable Sep 3, to shareholders of record on Aug 23; ex-div: Aug 27.

Chemed Corporation (CHE)

Founded in 1970 and headquartered in Cincinnati, Ohio, CHE operates through two segments, VITAS and Roto-Rooter. Its VITAS segment provides hospice and palliative care to patients through a network of physicians, registered nurses, home health aides, and social workers. CHE’s Roto-Rooter segment offers plumbing, drain cleaning, and water restoration to residential and commercial customers.

  • On Aug 6, CHE declared a quarterly dividend of 36¢ per share.
  • This is an increase of 5.88% from the prior dividend of 34¢.
  • Payable Sep 2, to shareholders of record on Aug 16; ex-div: Aug 13.

Carlisle Companies Incorporated (CSL)

Founded in 1917 and headquartered in Charlotte, North Carolina, CSL operates as a diversified manufacturing company in the United States and internationally. CSL designs, manufactures, and markets a range of products for various niche markets, including commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, medical technology, transportation, and healthcare.

  • On Aug 5, CSL declared a quarterly dividend of 54¢ per share.
  • This is an increase of 2.86% from the prior dividend of 52.5¢.
  • Payable Sep 1, to shareholders of record on Aug 18; ex-div: Aug 17.

Dover Corporation (DOV)

Founded in 1947 and headquartered in Downers Grove, Illinois, DOV manufactures and sells a range of equipment and components, specialty systems, software and digital solutions, and support services in the United States and internationally. DOV operates through four business segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.

  • On Aug 6, DOV declared a quarterly dividend of 50¢ per share.
  • This is an increase of 1.01% from the prior dividend of 49.5¢.
  • Payable Sep 15, to shareholders of record on Aug 31; ex-div: Aug 30.

Fidelity National Financial, Inc. (FNF)

FNF provides title insurance, and technology and transaction services to the real estate and mortgage industries in the United States. The company also offers information used by title insurance underwriters, title agents, and closing attorneys to underwrite title insurance policies for real estate sales and transfers. FNF was founded in 1847 and is headquartered in Jacksonville, Florida.

  • On Aug 3, FNF declared a quarterly dividend of 40¢ per share.
  • This is an increase of 11.11% from the prior dividend of 36¢.
  • Payable Sep 30, to shareholders of record on Sep 16; ex-div: Sep 15.

Federal Realty Investment Trust (FRT)

FRT owns, manages, develops, and redevelops retail and mixed-use properties. These properties are located primarily in affluent communities in select metropolitan markets in the Northeast and Mid-Atlantic regions of the USA and in California and South Florida. FRT was founded in 1962 and is headquartered in Rockville, Maryland.

  • On Aug 5, FRT declared a quarterly dividend of $1.07 per share.
  • This is an increase of 0.94% from the prior dividend of $1.06.
  • Payable Oct 15, to shareholders of record on Sep 22; ex-div: Sep 21.

Illinois Tool Works Inc. (ITW)

Founded in 1912 and headquartered in Glenview, Illinois, ITW is a diversified, global company that manufactures and sells industrial products and equipment worldwide. ITW operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products.

  • On Aug 6, ITW declared a quarterly dividend of $1.22 per share.
  • This is an increase of 7.02% from the prior dividend of $1.14.
  • Payable Oct 14, to shareholders of record on Sep 30; ex-div: Sep 29.

KLA Corporation (KLAC)

Founded in 1975 and headquartered in Milpitas, California, KLAC is a supplier of process control and yield management solutions for the semiconductor and related nano-electronics industries. KLAC’s products are used in a number of high technology industries, including the light-emitting diode and data storage industries, as well as general materials research.

  • On Aug 5, KLAC declared a quarterly dividend of $1.05 per share.
  • This is an increase of 16.67% from the prior dividend of 90¢.
  • Payable Sep 1, to shareholders of record on Aug 16; ex-div: Aug 13.

Quaker Chemical Corporation (KWR)

KWR develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications in North America, Europe, the Middle East, Africa, Asia/Pacific, and South America. The company was formerly known as Quaker Chemical Products Corporation. KWR was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

  • On Aug 3, KWR declared a quarterly dividend of 41.5¢ per share.
  • This is an increase of 5.06% from the prior dividend of 39.5¢.
  • Payable Oct 29, to shareholders of record on Oct 15; ex-div: Oct 14.

Microchip Technology Incorporated (MCHP)

MCHP develops, manufactures, and sells specialized semiconductor products for a wide range of embedded control applications. The company sells its products through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. MCHP was founded in 1989 and is headquartered in Chandler, Arizona.

  • On Aug 3, MCHP declared a quarterly dividend of 43.7¢ per share.
  • This is an increase of 5.81% from the prior dividend of 41.3¢.
  • Payable Sep 3, to shareholders of record on Aug 20; ex-div: Aug 19.

NewMarket Corporation (NEU)

Founded in 1887 and headquartered in Richmond, Virginia, NEU is a holding company that operates businesses involving petroleum additives. The company offers lubricant additives for use in various vehicle and industrial applications. NEU has operations in the United States, Canada, Europe, the Asia Pacific, India, Latin America, and the Middle East.

  • On Aug 5, NEU declared a quarterly dividend of $2.10 per share.
  • This is an increase of 10.53% from the prior dividend of $1.90.
  • Payable Oct 1, to shareholders of record on Sep 15; ex-div: Sep 14.

Terreno Realty Corporation (TRNO)

Founded in 2009 and headquartered in San Francisco, CA, TRNO is a real estate investment trust that acquires, owns, and operates industrial real estate properties. TRNO owns properties in six major coastal markets, namely Los Angeles, New Jersey and New York City, San Francisco, Seattle, Miami, and Washington, DC, and Baltimore.

  • On Aug 4, TRNO declared a quarterly dividend of 34¢ per share.
  • This is an increase of 17.24% from the prior dividend of 29¢.
  • Payable Oct 1, to shareholders of record on Sep 3; ex-div: Sep 2.

Willis Towers Watson Public Limited Company (WLTW)

WLTW operates as a global advisory, broking, and solutions company serving large companies as well as mid-market and small businesses worldwide. The company designs and delivers solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital. WLTW was founded in 1828 and is based in London, the United Kingdom.

  • On Aug 3, WLTW declared a quarterly dividend of 80¢ per share.
  • This is an increase of 12.68% from the prior dividend of 71¢.
  • Payable Oct 15, to shareholders of record on Sep 30; ex-div: Sep 29.

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

Dividend Cuts and Suspensions

Following requests from readers, we've added this section to our weekly article series. Please note that we're only covering dividend cuts and suspensions announced by companies in Dividend Radar's spreadsheet. There were no dividend cuts or suspensions announced for stocks in Dividend Radar during this period.

An Interesting Candidate

In this section, we highlight one of the stocks that announced a dividend increase. We provide a quality assessment and present performance, earnings, and valuation charts.

Our objective is to identify high-quality dividend growth [DG] stocks trading at reasonable valuations. That's a tough task, though, as high-quality DG stocks often trade at premium valuations. If we can't find a worthy candidate, we'll suggest a stock to add to your watchlist and a suitable target price.

To start, we use DVK Quality Snapshots to do a quick quality assessment, screening our list of DG stocks based on quality scores. Below is a shortlist of stocks with quality scores in the range 19-25:

Source: Created by the Author from data in Dividend Radar

Four stocks qualify this week. Illinois Tool Works (ITW) has the highest quality score, but we've highlighted ITW earlier this year. Comparing the total returns (price appreciation and dividend payments) of these stocks over the past ten years, Carlisle Companies (CSL) is the only stock that outperformed the S&P 500 (represented by SPDR S&P 500 Trust ETF (SPY)):

Source: Unless otherwise noted, all charts courtesy of Portfolio-Insight.com

With 45 consecutive years of higher dividend payments, Dividend Champion CSL yields only1.06% at $203.77 per share, but it has a strong 5-year DGR of 11.9%!

CSL has outperformed SPY over the past ten years, with total returns of 568% versus SPY's 380%, a 1.49-to-1 margin. If we extend the period to the past twenty years, CSL's outperformance is more impressive, with total returns of 1,142% versus SPY's 561%, a 2.04-to-1 margin!

CSL's dividend growth history is a model of consistency!

Furthermore, CSL's dividend growth rate appears to be accelerating a bit, since its acceleration factor is 1.11, which is higher than the 1.00 level that would indicate consistent dividend increases from year to year. (To calculate the acceleration factor, divide a stock's 5-year DGR by its 10-year DGR).

CSL's earnings are less consistent but generally growing, though the company suffered a drop of about 24% in EPS in FY 2020 due to the impact of the COVID-19 pandemic. Fortunately, it appears that analysts are expecting a solid recovery for FY 2021 and FY 2020:

At 33%, CSL's earnings payout ratio is "low for most companies", according to Simply Safe Dividends:

Source: Simply Safe Dividends

Let's now consider CSL's valuation. We could estimate fair value by dividing the stock's annualized dividend ($2.16) by its 5-year average yield (1.37%). That results in a fair value [FV] estimate of $158. Given CSL's current price of $203.77, the stock appears to be trading at a premium to its past dividend yield history.

For reference, Morningstar's FV is $163, CFRA's FV is $182, Finbox.com's FV is $211, and Simply Wall St's FV is $224. The average of these fair value estimates is $195, indicating that CSL may be slightly overvalued currently.

My own FV estimate of CSL is $194, so I believe the stock is trading at a premium valuation of about 5%.

Conclusion

CSL is a high-quality DG stock trading at a premium valuation. I would wait for CSL to trade below $194 per share before considering opening a position or adding shares to an existing position. For conservative investors, look to buy below $175 per share.

Please note that we're not recommending CSL or any of the stocks listed in this article. Readers should do their own research on these companies before buying shares.

Thanks for reading and happy investing!

This article was written by

FerdiS profile picture
25.87K Followers
FerdiS invests in dividend growth stocks and writes options to boost dividend income. He manages DivGro, a portfolio of mainly dividend growth stocks created in January 2013. With investment and trading experience spanning nearly 20 years, FerdiS enjoys writing articles about dividend growth investing, options trading, stock selection, portfolio management, and passive income generation. His DivGro blog hosts more than 1,000 posts and a live, public spreadsheet with full details of his DivGro portfolio, allowing readers to follow along in his investment journey. FerdiS is collaborating with the founders of Portfolio Insight, an online platform for portfolio management and investment analysis. Together, we maintain and publish Dividend Radar, a free spreadsheet of dividend growth stocks, on a weekly basis.
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Disclosure: I/we have a beneficial long position in the shares of ITW either through stock ownership, options, or other derivatives. 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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