Dividend Increases: August 21-27, 2021

Aug. 30, 2021 11:00 AM ETAVT, CCBG, DKS, EGP, FAF, MO, NRIM, NSA, NSA.PA, SMMF, SPY, TFSL, WSM11 Comments
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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 provide a snapshot analysis of one of the stocks worth considering, whether to buy or to add to your watchlist.

Williams Sonoma Beats Expectations On Lower Earnings
Scott Olson/Getty Images News

We monitor dividend announcements for stocks in Dividend Radar, a spreadsheet we update and publish for free every Friday. The spreadsheet provides key data of stocks with dividend streaks of five years or more. The Dividend Radar spreadsheet separates stocks into categories based on the length of the streak: Champions (25+ years), Contenders (10- 24 years), and Challengers (5-9 years).

Source: Created by the author

Recently, eleven companies in Dividend Radar decided to increase their dividends, 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: August 21-27, 2021
Previous Post: Dividend Increases: August 14-20, 2021

Source: Created by the authors 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.

Avnet, Inc. (AVT)

AVT is a technology solutions company that distributes electronic components worldwide. The company's Electronic Components segment serves automotive, medical, defense and aerospace markets. Its Premier Farnell segment distributes kits, tools, and components to engineers and entrepreneurs. AVT was founded in 1921 and is headquartered in Phoenix, Arizona.

  • On Aug. 24, AVT declared a quarterly dividend of 24¢ per share.
  • This is an increase of 9.09% from the prior dividend of 22¢.
  • Payable Sept. 21 to shareholders of record on Sept. 7; ex-div: Sept. 3.

Capital City Bank Group, Inc. (CCBG)

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.

  • On Aug. 26, CCBG declared a quarterly dividend of 16¢ per share.
  • This is an increase of 6.67% from the prior dividend of 15¢.
  • Payable Sept. 27 to shareholders of record on Sept. 13; ex-div: Sept. 10.

DICK'S Sporting Goods, Inc. (DKS)

DKS operates as a sporting goods retailer in the United States. The company provides sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products, as well as apparel, footwear and accessories. DKS was founded in 1948 and is headquartered in Coraopolis, Pennsylvania.

  • On Aug. 25, DKS declared a quarterly dividend of 43.75¢ per share.
  • This is an increase of 20.69% from the prior dividend of 36.25¢.
  • Payable Sept. 24 to shareholders of record on Sept. 10; ex-div: Sept. 9.

EastGroup Properties, Inc. (EGP)

EGP is an equity real estate investment trust focused on the development, acquisition, and operation of industrial properties in the United States. The company's properties are located mainly in the states of Florida, Texas, Arizona, California, and North Carolina. EGP was founded in 1969 and is headquartered in Jackson, Mississippi.

  • On Aug. 26, EGP declared a quarterly dividend of 90¢ per share.
  • This is an increase of 13.92% from the prior dividend of 79¢.
  • Payable Oct. 15 to shareholders of record on Sept. 30; ex-div: Sept. 29.

First American Financial Corporation (FAF)

Incorporated in 2008 and based in Santa Ana, California, FAF provides financial services through its subsidiaries. The company issues title insurance policies and provides escrow and real estate closing services on residential and commercial property. FAF also provides property and casualty insurance, and home warranty products to homeowners and renters.

  • On Aug. 24, FAF declared a quarterly dividend of 51¢ per share.
  • This is an increase of 10.87% from the prior dividend of 46¢.
  • Payable Sept. 15 to shareholders of record on Sept. 8; ex-div: Sept. 7.

Altria Group, Inc. (MO)

MO was founded in 1919 and is headquartered in Richmond, Virginia. The company manufactures and sells cigarettes, smokeless products, and wine in the United States. In March 2008, MO spun off the subsidiary Phillip Morris to protect it from litigation in the United States.

  • On Aug. 26, MO declared a quarterly dividend of 90¢ per share.
  • This is an increase of 4.65% from the prior dividend of 86¢.
  • Payable Oct. 12 to shareholders of record on Sept. 15; ex-div: Sept. 14.

Northrim BanCorp, Inc. (NRIM)

NRIM operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals in Alaska. It operates in two segments, Community Banking and Home Mortgage Lending. NRIM was founded in 1990 and is headquartered in Anchorage, Alaska.

  • On Aug. 27, NRIM declared a quarterly dividend of 38¢ per share.
  • This is an increase of 2.70% from the prior dividend of 37¢.
  • Payable Sept. 17 to shareholders of record on Sept. 9; ex-div: Sept. 8.

National Storage Affiliates Trust (NSA)

NSA is a Maryland real estate investment trust focused on the ownership, operation, and acquisition of self-storage properties located within the top metropolitan areas throughout the United States. The company holds ownership interests in and operates self-storage properties located in 35 states and in Puerto Rico.

  • On Aug. 26, NSA declared a quarterly dividend of 41¢ per share.
  • This is an increase of 7.89% from the prior dividend of 38¢.
  • Payable Sept. 30 to shareholders of record on Sept. 15; ex-div: Sept. 14.

Summit Financial Group, Inc. (SMMF)

SMMF operates as a financial holding company for Summit Community Bank, Inc. that provides community banking and other financial services to individuals and businesses primarily in West Virginia and Virginia. The company operates through three segments: Community Banking, Trust and Wealth Management, and Insurance. SMMF was founded in 1987 and is headquartered in Moorefield, West Virginia.

  • On Aug. 27, SMMF declared a quarterly dividend of 18¢ per share.
  • This is an increase of 5.88% from the prior dividend of 17¢.
  • Payable Sept. 30 to shareholders of record on Sept. 15; ex-div: Sept. 14.

TFS Financial Corporation (TFSL)

TFSL, through its subsidiaries, provides retail consumer banking services in the states of Ohio and Florida in the United States. The company offers various deposit and loan products and provides escrow and settlement services. TFSL was founded in 1938 and is headquartered in Cleveland, Ohio.

  • On Aug. 26, TFSL declared a quarterly dividend of 28.25¢ per share.
  • This is an increase of 0.89% from the prior dividend of 28¢.
  • Payable Sept. 21 to shareholders of record on Sept. 7; ex-div: Sept. 3.

Williams-Sonoma, Inc. (WSM)

Founded in 1956 and headquartered in San Francisco, California, WSM operates as a multi-channel specialty retailer of home products. WSM markets its products through e-commerce websites, direct mail catalogs, and more than 600 stores in the United States and internationally. Brand names include Williams-Sonoma, Pottery Barn, West Elm, and Rejuvenation.

  • On Aug. 25, WSM declared a quarterly dividend of 71¢ per share.
  • This is an increase of 20.34% from the prior dividend of 59¢.
  • Payable Nov. 26 to shareholders of record on Oct. 22; ex-div: Oct. 21.

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. We usually screen for stocks with quality scores in the range of 19-25, but none make the cut this week. Here are stocks rated Decent (quality scores: 15-18):

Source: Created by the authors from data in Dividend Radar

Let's look at Dividend Contender Williams-Sonoma, Inc. this week.

Founded in 1956 and headquartered in San Francisco, California, WSM operates as a multi-channel specialty retailer of home products. WSM markets its products through e-commerce websites, direct mail catalogs, and more than 600 stores in the United States and internationally. Brand names include Williams-Sonoma, Pottery Barn, West Elm, and Rejuvenation.

With 15 consecutive years of higher dividend payments, WSM yields 1.54% at $183.86 per share and has a strong 5-year DGR of 8.5%.

WSM is rated Decent (quality score: 15-18):

Over the past ten years, WSM has outperformed the SPDR S&P 500 ETF (SPY), an ETF designed to track the 500 companies in the S&P 500 index:

Source: Portfolio-Insight.com

Over this time frame, WSM delivered total returns of 598% versus SPY's 352%, a 1.70-to-1 margin.

If we extend the period of comparison to the past twenty years, WSM's outperformance is even more pronounced, with total returns of 1,543% versus SPY's 472%, a 3.27-to-1 margin!

WSM's dividend growth is strong and appealing, especially considering the latest dividend increase of 20.3% (versus last year's 5.35%):

I also look at EPS growth, as earnings are primarily what companies use to pay dividends. Here, WSM also impresses, especially in the most recent years:

Note how WSM's price chart got "pushed up" by its stellar earnings in FY 2000 and FY 2001.

At 17%, WSM's earnings payout ratio is "very low for most companies", according to Simply Safe Dividends:

This means WSM has plenty of room to continue with generous dividend hikes.

Let's now consider WSM's valuation. We could estimate fair value by dividing the stock's annualized dividend ($2.84) by its 5-year average yield (2.74%). That results in a fair value [FV] estimate of $104. Given WSM's current price of $183.86, the stock is trading at a significant premium to its past dividend yield history.

For reference, Simply Wall Street's FV is $201, Finbox.com's FV is $222, and CFRA's FV is $238. The average of these fair value estimates is $220, indicating that WSM may be discounted.

My own FV estimate of WSM is $166, so I believe the stock is trading at a premium valuation of about 10%.

Conclusion

WSM is a quality DG stock trading at a premium valuation. Wait for the stock price to drop below $166 before considering a buy. For conservative investors, look to buy below $150 per share.

Please note that we're not recommending WSM 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
26.27K 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.

Disclosure: I/we have a beneficial long position in the shares of MO 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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