We monitor dividend announcements for stocks in Dividend Radar, a spreadsheet of stocks with dividend streaks of five years or more. Readers are invited to download the spreadsheet for free. 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).
In the last week, 23 companies in Dividend Radar announced dividend increases, including two of my DivGro holdings. 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, followed 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: October 30-November 5, 2021|
|Previous Post: Dividend Increases: October 23-29, 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.
ABC sources and distributes pharmaceutical products to healthcare providers, pharmaceutical and biotech manufacturers, and specialty drug patients in the United States and internationally. The company distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, and home healthcare supplies and equipment. ABC was founded in 1985 and is headquartered in Chesterbrook, Pennsylvania.
AL is an aircraft leasing company that purchases and leases commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. AL was founded in 2010 and is based in Los Angeles, California.
BDX is a global medical technology company engaged in developing, manufacturing, and selling a range of medical supplies, devices, laboratory equipment, and diagnostic products used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public. BDX was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.
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.
Founded in 1984 and is based in Lincolnshire, Illinois, CDW provides integrated information technology [IT] solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. CDW offers discrete hardware and software products and integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration.
CGNX provides machine vision products that capture and analyze visual information to automate tasks in manufacturing processes. The company sells its products to customers in the consumer electronics and automotive industries and the semiconductor and electronics capital equipment markets. CGNX was founded in 1981 and is headquartered in Natick, Massachusetts.
CUBE is a self-managed and self-administered real estate investment trust conducted solely through CubeSmart, LP, and its subsidiaries. The company focuses on the ownership, operation, management, acquisition, and development of self-storage facilities in the United States. CUBE was founded in July 2004 and is based in Malvern, Pennsylvania.
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.
EMR provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. The company is engaged in designing, manufacturing, and selling a broad range of electrical, electromechanical, and electronic products and systems. EMR was founded in 1890 and is headquartered in St. Louis, Missouri.
EVA produces and supplies utility-grade wood pellets. The company serves utilities and large-scale power generators in the United Kingdom and other European markets. Enviva Partners GP, LLC operates as the general partner of the company. EVA was founded in 2013 and is based in Bethesda, Maryland.
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.
Founded in 1886 and headquartered in Newport News, Virginia, HII designs, builds, overhauls, and repairs military ships in the United States. The company operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. HII designs and builds non-nuclear and nuclear-powered ships and provides refueling, overhaul, and inactivation services.
HTA is a publicly owned equity real estate investment trust that focuses on owning and operating high-quality medical office buildings. These properties are primarily located on-campus or are affiliated with the nation's leading healthcare systems. HTA was founded in 2006 and is based in Scottsdale, Arizona.
Formerly known as Octel Corp, IOSP develops, manufactures, blends, markets, and supplies specialty chemicals for use as fuel additives, ingredients for personal care, home care, agrochemical, mining, other applications, and oilfield chemicals worldwide. IOSP was founded in 1938 and is headquartered in Englewood, Colorado.
KW is a global real estate investment and services company. The company owns, operates, and invests in real estate, primarily multifamily and commercial properties in the western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. KW was founded in 1977 and is headquartered in Beverly Hills, California.
LNC operates insurance and retirement businesses in the United States. The company sells a range of wealth protection, accumulation, and retirement income products and solutions. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. LNC was founded in 1904 and is headquartered in Radnor, Pennsylvania.
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.
Founded in 1960 and based in Los Angeles, California, MCY is an insurance holding company underwrites personal automobile insurance in the United States. The company also underwrites homeowners, commercial automobile, commercial property, and umbrella insurance. MCY sells its policies through a network of independent agents and direct channels.
Founded in 2012 and based in Findlay, Ohio, MPLX is a master limited partnership that owns, operates, develops, and acquires midstream energy infrastructure assets. MPLX gathers, processes, and transports natural gas. The company also gathers, transports, stores, and markets natural gas liquids, crude oil, and refined petroleum products.
NHC is engaged in the operation of skilled nursing facilities with associated assisted living and independent living centers in the USA. The company provides sub-acute skilled and post-acute skilled nursing care, intermediate nursing care, rehabilitative care, senior living services, and home healthcare services. NHC was founded in 1971 and is based in Murfreesboro, Tennessee.
NP was incorporated in April 2004 and is organized into two primary businesses. The technical products business produces transportation and other filter media and coated substrates for industrial products backings. The fine paper business supplies premium writing, cover, and other specialty papers. NP is headquartered in Alpharetta, Georgia.
PNW is a holding company that provides retail and wholesale electric services primarily in the state of Arizona. Its subsidiary, Arizona Public Service Company, is a vertically integrated electric company that generates, transmits, and distributes electricity using coal, nuclear, gas, oil, and solar resources. PNW was founded in 1920 and is headquartered in Phoenix, Arizona.
SNA manufactures and markets tools, equipment, diagnostics, repair information, and systems solutions. It serves aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, technical education industries, and vehicle dealerships and repair centers. SNA was founded in 1920 and is headquartered in Kenosha, Wisconsin.
Please note that we're not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
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.
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 authors from data in Dividend Radar
Seven stocks made the shortlist this week. Snap-on (SNA) has the highest 5-year DGR and a reasonable yield, so let's look at this stock in more detail.
SNA yields 2.64% at $214.85 per share and has an impressive 5-year DGR of 15.1%.
SNA is rated Fine (quality score: 19-22):
Over the past ten years, SNA has outperformed the SPDR S&P 500 ETF (SPY), an ETF designed to track the 500 companies in the S&P 500 index:
Over this time frame, SNA delivered total returns of 392% versus SPY's 358%, a margin of 1.09-to-1.
If we extend the comparison period to the past twenty years, SNA easily outperformed SPY with total returns of 1,137% versus SPY's 511% (a margin of 2.23-to-1)!
SNA's dividend growth is impressive, with double-digit percentage increases in each of the past ten years:
SNA's EPS growth also is impressive, despite a down year FY 2020 due to the COVID-19 pandemic and its effect on the economy. Estimates for FY 2021 and FY 2022 look promising and should all but recover the earnings growth trend of the past ten years:
At 34%, SNA's earnings payout ratio is "low for most companies," according to Simply Safe Dividends:
Source: Simply Safe Dividends
This means SNA has ample room to continue its generous dividend increases!
Next, let's now consider SNA's valuation. We could estimate fair value by dividing the stock's annualized dividend ($5.68) by its 5-year average yield (2.30%). That results in a fair value [FV] estimate of $247. Given SNA's current price of $214.85, the stock is trading at a discount relative to its past dividend yield history.
For reference, Morningstar's FV is $171, CFRA's FV is $242, and Finbox.com's FV is $290. The average of these fair value estimates is $234, also indicating that SNA may be undervalued.
My own FV estimate of SNA is $218, so I believe the stock is trading at a slight discount of about 1.4%.
Here are the most recent Seeking Alpha articles covering SNA, all Neutral:
SNA is a high-quality DG stock rated Fine. For stocks rated Fine, I require a discounted valuation. Therefore, my Buy Below price for SNA is $218. For conservative investors, look to buy below $196 per share.
Please note that we're not recommending SNA 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
Disclosure: I/we have a beneficial long position in the shares of PNW, SNA 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.