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 three categories: Champions (with increase streaks of 25+ years), Contenders (10-24 years), and Challengers (5-9 years).
Recently, 17 companies in Dividend Radar announced dividend increases, including two of the stocks I own. Note there were no dividend cuts or suspensions announced for Dividend Radar stocks during this period.
The table below 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: November 13-19, 2021|
|Previous Post: Dividend Increases: November 6-12, 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.
Agilent provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company operates in three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. It markets its products through direct sales, distributors, resellers, and electronic commerce. Agilent was founded in 1999 and is headquartered in Santa Clara, California.
AMNB operates as the bank holding company for American National Bank and Trust Company that provides financial products and services to customers in Virginia and North Carolina. The company operates through two segments, Community Banking, and Trust and Investment Services. AMNB was founded in 1909 and is headquartered in Danville, Virginia.
Founded in 1914 and based in Milwaukee, Wisconsin, BRC manufactures and supplies identification solutions and workplace safety products to identify and protect premises, products, and people. BRC offers identification and healthcare products under the Brady brand; and workspace safety and compliance products under various brands, including Electromark, Identicard, and PromoVision.
CHCO is the parent company of City National Bank of West Virginia. The company provides banking, trust, and investment management, and other financial services through a network of branches across West Virginia, Virginia, Kentucky, and Ohio. CHCO was founded in 1982 and is headquartered in Charleston, West Virginia.
HPQ, together with its subsidiaries, is a global provider of products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors. HPQ was founded in 1939 and is headquartered in Palo Alto, California.
KEY is an integrated multi-line financial services company. Its subsidiaries provide a wide range of investment management, retail and commercial banking, consumer finance, and investment banking products and services to corporate, individual, and institutional clients in the United States. KEY was founded in 1849 and is headquartered in Cleveland, Ohio.
LZB manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and case-good furniture products in the United States, Canada, and internationally. The company also produces reclining chairs and manufactures and distributes residential furniture. LZB was founded in 1927 and is based in Monroe, Michigan.
MATW provides brand solutions, memorialization products, and industrial technologies in the United States, Central, and South America, Canada, Europe, Australia, and Asia. The Company operates through three segments: SGK Brand Solutions, Memorialization, and Industrial Technologies. MATW was founded in 1850 and is based in Pittsburgh, Pennsylvania.
MSI provides mission-critical communication infrastructure, devices, accessories, software, and services in North America, Latin America, the Asia Pacific, the Middle East, Europe, and Africa. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. MSI was founded in 1928 and is headquartered in Chicago, Illinois.
MVBF, together with its subsidiaries, provides banking and mortgage products and services to individuals and corporate clients in the United States. The company operates through three segments: Commercial and Retail Banking; Mortgage Banking; and Financial Holding Company. MVBF was founded in 1997 and is headquartered in Fairmont, West Virginia.
Founded in 1964 and headquartered in Beaverton, Oregon, NKE is engaged in the design, development, marketing, and selling of athletic footwear, apparel, equipment, and accessories. The company's portfolio brands include NIKE, Jordan, Hurley, and Converse. NKE sells its products to retail accounts, through NIKE-owned retail stores and websites, and through independent distributors and licensees.
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.
Known as The Monthly Dividend Company®, O is an equity REIT that invests in commercial real estate markets in the United States. The company earns income from more than 5,000 properties under long-term lease agreements with commercial tenants. O was founded in 1969 and is headquartered in San Diego, California.
Founded in 1981 and based in Denver, Colorado, RGLD acquires and manages precious metals royalties, metal streams, and similar interests, primarily in the United States, Canada, Chile, and Mexico. RGLD focuses on acquiring royalty and stream interests or financing projects that are in production or in the development stage in exchange for royalty interests.
SSNC, together with its subsidiaries, provides software products and software-enabled services to the financial services and healthcare industries. The company owns and operates a technology stack across securities accounting, front-to-back-office operations, performance and risk analytics, regulatory reporting, and healthcare information processes. SSNC was founded in 1986 and is headquartered in Windsor, Connecticut.
UBCP operates as the bank holding company for Unified Bank, providing commercial and retail banking services in Ohio and West Virginia. The company provides various deposit and loan products, as well as brokerage services. UBCP was founded in 1902 and is headquartered in Martins Ferry, Ohio.
UNTY operates as the holding company for Unity Bank that provides a range of banking products and services to individuals, small and medium-sized businesses, and professional communities. The company offers personal and commercial deposit and loan accounts. UNTY was founded in 1991 and is headquartered in Clinton, New Jersey.
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
Only two stocks made the shortlist this week. Nike has a perfect quality score and a higher yield and 5-year DGR. But Agilent Technologies has outperformed NKE over the past one year and three year periods, based on trailing total returns.
I've already highlighted NKE this year, so let's turn our attention to Agilent this week.
Agilent yields only 0.51% at $164.30 per share and has a strong 5-year DGR of 10.6%.
Agilent is rated Fine (quality score: 19-22):
Over the past ten years, Agilent 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, Agilent delivered total returns of 384% versus SPY's 366%, a margin of 1.05-to-1.
If we extend the period of comparison to the past twenty years, Agilent also outperformed SPY, with total returns of 650% versus SPY's 497% (a margin of 1.31-to-1)!
A just became a Dividend Contender with 10 consecutive years of higher dividend payments. As such, the stock does not yet have a 10-year dividend growth rate:
Additionally, we note an irregularity in Agilent's calendar year dividend totals. That's one reason why we use up to ten different bases to determine a stock's dividend streak, retaining the longest. Agilent qualifies as a Dividend Contender based on its declaration day streak of ten years:
Source: Portfolio Insight
After a terrific drop in FY 2015, Agilent's EPS growth looks quite impressive, with strong estimates for FY 2021, FY 2022, and FY 2023:
At 19%, Agilent's earnings payout ratio is "very low for most companies", according to Simply Safe Dividends:
Source: Simply Safe Dividends
This means Agilent has ample room to grow its dividend for many years to come!
Next, let's now consider Agilent's valuation. We could estimate fair value by dividing the stock's annualized dividend ($0.84) by its 5-year average yield (0.81%). That results in a fair value [FV] estimate of $104. Given Agilent's current price of $164.30, the stock is trading at a significant premium relative to its past dividend yield history.
For reference, Simply Wall St's FV is $104, Morningstar's FV is $107, CFRA's FV is $136, and Finbox.com's FV is $145. The average of these fair value estimates is $123, also indicating that Agilent may be overvalued.
My own FV estimate of Agilent is $134, so I believe the stock is trading at a premium of about 23%.
Here are the most recent Seeking Alpha articles covering Agilent, all Neutral:
Agilent is a high-quality DG stock rated Fine. For stocks rated Fine, I require a discounted valuation relative to my FV estimate. Therefore, my Buy Below price for Agilent is $134. For conservative investors, look to buy below $121 per share.
Please note that we're not recommending A 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 NKE, O 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.