6 Upcoming Dividend Increases

Oct. 21, 2021 11:13 AM ETAOS, CASY, COP, HIFS, NWN, SXT11 Likes
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Dividend Derek
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Summary

  • All stocks have at least five fiscal years of dividend growth history and come from the U.S. Dividend Champions List.
  • They have an average and median increase of 4.5%. YTD, I've tracked 389 increases.
  • There are six increases for next week, up from two last week.
  • Dividend King Northwest Natural Holding Company extends their 65 year history with a 0.42% increase.
  • Looking for a portfolio of ideas like this one? Members of Wheel of Fortune get exclusive access to our model portfolio. Learn More »
Growing Graph

Eoneren/E+ via Getty Images

Dividend investors view annual dividend increases as a sign from management that business is going well and the company can increasingly reward shareholders. I track upcoming dividend increases from companies that have a history of increasing them. I'm then able to provide the lists below. They contain different data points 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.

How I Created The Lists

I created the information below 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. These companies all have a minimum five-year dividend growth history.

Companies are required to have higher total dividends paid out each year. Therefore, a company may not raise its dividend each calendar year, but the total annual dividend can still increase. An example shows increasing payments each year but with the same dividend amount over eight consecutive quarters.

U.S. Dividend Champions

Source: Author

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. For example, 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
Category Count
King 1
Champion 1
Contender 3
Challenger 1

The Main List

Data has been sorted by the ex-dividend day (ascending) and then by the streak (descending):

Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category
ConocoPhillips (COP) 5 2.42 27-Oct-21 6.98% Challenger
Northwest Natural Holding Company (NWN) 65 4.06 28-Oct-21 0.42% King
A.O. Smith Corporation (AOS) 28 1.68 28-Oct-21 7.69% Champion
Casey's General Stores, Inc. (CASY) 22 0.73 29-Oct-21 2.94% Contender
Sensient Technologies Corporation (SXT) 15 1.71 29-Oct-21 5.13% Contender
Hingham Institution for Savings (HIFS) 13 0.6 29-Oct-21 3.92% Contender

Field Definitions

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: The percent increase.

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 percentage increase. 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
COP 0.43 0.46 6.98%
NWN 0.48 0.482 0.42%
AOS 0.26 0.28 7.69%
CASY 0.34 0.35 2.94%
SXT 0.39 0.41 5.13%
HIFS 0.51 0.53 3.92%

Additional Metrics

Here are some different metrics related to these companies, including yearly pricing action and the P/E ratio. The table is sorted the same way as the table above. A value investor may find stock ideas with those companies near their 52-week lows as they could provide more margin of safety and inflated yield.

Ticker Current Price 52 Week Low 52 Week High PE Ratio % Off Low % Off High
COP 76.02 26.86 76.1 0 183% Off Low 0% Off High
NWN 47.48 40.55 55.74 23.76 17% Off Low 15% Off High
AOS 66.65 50.4 73.81 28.51 32% Off Low 10% Off High
CASY 190.54 164.56 228.79 21.28 16% Off Low 17% Off High
SXT 95.73 62.91 98.7 46.38 52% Off Low 3% Off High
HIFS 351.86 199.55 365 10.98 76% Off Low 4% Off High

Tickers By Yield And Growth Rates

Some investors are more interested in the current yield, so this table is sorted by descending by yield. The table also includes some of the historical dividend growth rates as a bonus. Additionally, the "Chowder Rule" has been included, the current yield + five-year dividend growth rate.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
NWN 4.06 0.5 0.5 0.5 1.1 4.6
COP 2.42 9.3 15.9 -2.9 -3.4 -0.5
SXT 1.71 2 6.5 7.6 6.7 9.3
AOS 1.68 8.5 16.8 18.9 22 20.6
CASY 0.73 3.1 8.3 8.5 10.1 9.2
HIFS 0.6 13.6 11.2 9.3 6.8 9.9

Conclusion

Stock returns

(Source)

I put all the companies on the list into my stock return calculator going back six years. I tried to set the bar to when ConocoPhillips restarted its dividend growth. Over those years, HIFS was the top overall performer with a 202% total return. NWN came in the lowest with just under 18% total return over six years. NWN is also a Dividend King with over 65 consecutive years of dividend growth. That kind of history can keep valuations high, even if the stock isn't growing strongly. In any event, NWN delivered the most dividends over the period with $2,600.

Please be sure to do your due diligence before investing. Thanks for reading.

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This article was written by

Dividend Derek profile picture
22.27K Followers
Derek is an individual investor seeking to navigate the investment world to provide a wealthy and stable retirement for his family. He aims to help fellow investors, notably younger investors, establish a plan to produce a growing income stream. Derek holds a Bachelor's degree in Computer Science with a minor in Economics from the University of Delaware and lives with his wife and two children.Derek created and operates customstockalerts.com. It's a suite of utilities for investors to stay on top of all their stocks. Pick a company you're interested in, pick an alert type (price, dividend yield, PE, etc.) and a value. You'll get a text or email (your choice) when your value hits. Also, get alerts for upcoming dividends, including increases (works for stocks and ETFs). Use it as a chance to buy and collect the dividend!Come check me out at customstockalerts.com!
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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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