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.
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.
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.
Here are the definitions of the streak categories, as I'll be using them throughout the piece.
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|
|Tompkins Financial Corporation||(TMP)||35||2.83||1-Nov-21||5.56%||Champion|
|Brown & Brown, Inc.||(BRO)||27||0.65||2-Nov-21||10.80%||Champion|
|Heritage Financial Corporation||(HFWA)||9||3.44||2-Nov-21||5.00%||Challenger|
|S&T Bancorp, Inc.||(STBA)||8||3.82||3-Nov-21||3.57%||Challenger|
|NextEra Energy Partners, L.P.||(NEP)||7||3.26||3-Nov-21||3.32%||Challenger|
|Magellan Midstream Partners L.P. Limited Partnership||(MMP)||19||8.41||4-Nov-21||0.97%||Contender|
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.
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|
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|
|TMP||80.67||52.84||91.53||13.58||53% Off Low||12% Off High|
|BRO||62.64||42.48||67.24||27.62||47% Off Low||7% Off High|
|HFWA||24.44||19.29||30.39||22.19||27% Off Low||20% Off High|
|STBA||30.34||17.76||35.17||44.93||71% Off Low||14% Off High|
|NEP||84||59.33||86.16||0||42% Off Low||3% Off High|
|MMP||49.37||30.89||52.69||10.93||60% Off Low||6% Off High|
|IDA||103.99||83.08||110.21||18.92||25% Off Low||6% Off High|
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|
I put all the companies into my stock return calculator for seven years (based on available data). BRO was the overall winner with over 23.6% annualized return, with MMP ending with negative total returns. NEP provided the most amount of dividends with $4,300 in those seven years. They also had the best dividend growth with over a 16% annual increase for the past five years. That, coupled with a healthy yield, will lead to these periods of outperformance.
Please be sure to do your due diligence before investing. Thanks for reading.
This article was written by
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.