11 Dividend Increases To Start 2022 Including A Dividend King

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 increase of 12.4% and a median increase of 10.5%. I've tracked 11 increases in 2022.
• There are eleven increases for next week, down from twenty last week.
• 2022 starts off with a bang with several 10%+ increases! ABM also extends their 54-year dividend streak.
• Looking for a portfolio of ideas like this one? Members of Wheel of Fortune get exclusive access to our model portfolio. Learn More »

Galeanu Mihai/iStock via Getty Images

Welcome to the first edition for 2022! I'm writing this on New Year's Eve, so let me be one of the first to wish you a Happy New Year!

Dividend increases are an outward sign from management that business is going well, and the company can increasingly reward shareholders. I track upcoming dividend increases from companies with a history of increasing them. The lists below contain different data points for the stocks 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 over eight consecutive quarters.

Source: Author

What Is The Ex-Dividend Date?

The "ex-dividend" date is when 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 use them throughout the piece.

• King: 50+ years
• Champion/Aristocrat: 25+ years
• Contender: 10-24 years
• Challenger: 5+ years

Category	Count
King	1
Champion	2
Contender	6
Challenger	2

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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
Main Street Capital Corporation	(MAIN)	11	5.77	3-Jan-22	2.40%	Contender
Agilent Technologies, Inc.	(A)	10	0.52	3-Jan-22	8.25%	Contender
Bank Nova Scotia Halifax Pfd 3 Ordinary Shares	(BNS)	6	5.6	3-Jan-22	10.45%	Challenger
Erie Indemnity Company - Class A Common Stock	(ERIE)	31	2.3	4-Jan-22	7.25%	Champion
ABM Industries Incorporated	(ABM)	54	1.92	5-Jan-22	2.63%	King
First Financial Corporation Indiana	(THFF)	33	2.35	6-Jan-22	18.87%	Champion
Royal Gold, Inc.	(RGLD)	20	1.34	6-Jan-22	16.67%	Contender
Bristol Myers Squibb Company	(BMY)	15	3.47	6-Jan-22	10.20%	Contender
Morningstar, Inc.	(MORN)	10	0.42	6-Jan-22	14.29%	Contender
Mastercard Incorporated	(MA)	10	0.54	6-Jan-22	11.36%	Contender
Owens Corning Inc Common Stock New	(OC)	8	1.54	6-Jan-22	34.62%	Challenger

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Field Definitions

Streak: This is years of dividend growth history sourced from the U.S. Dividend Champions spreadsheet.

Forward Yield: The new payout rate is 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
MAIN	0.21	0.215	2.40%
A	0.194	0.21	8.25%
BNS	0.708	0.782	10.45%
ERIE	1.035	1.11	7.25%
ABM	0.19	0.195	2.63%
THFF	0.53	0.63	18.87%
RGLD	0.3	0.35	16.67%
BMY	0.49	0.54	10.20%
MORN	0.315	0.36	14.29%
MA	0.44	0.49	11.36%
OC	0.26	0.35	34.62%

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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
MAIN	44.74	29.25	46.81	0	53% Off Low	4% Off High
A	160.71	112.01	179.35	49.74	43% Off Low	10% Off High
BNS	71.37	50.98	71.54	13.02	40% Off Low	0% Off High
ERIE	193.35	167.91	262.62	43.91	15% Off Low	26% Off High
ABM	40.6	35.87	54.82	0	13% Off Low	26% Off High
THFF	45.18	37.47	46.45	10.26	21% Off Low	3% Off High
RGLD	104.15	92.01	128.95	32.23	13% Off Low	19% Off High
BMY	62.31	53.22	69.19	0	17% Off Low	10% Off High
MA	361.21	306	400.99	51.17	18% Off Low	10% Off High
MORN	344.03	213.02	347.24	50.24	62% Off Low	1% Off High
OC	91.1	71.92	109.28	0	27% Off Low	17% Off High

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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 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
MAIN	5.77	0	2.7	2.7	4.9	8.5
BNS	5.6	3.5	13.5	0.6	1	6.2
BMY	3.47	9.3	6	0	3.7	3.5
THFF	2.35	1.9	1.3	1.4	1.3	3.7
ERIE	2.3	7.2	7.2	7.2	7.2	9.5
ABM	1.92	28.8	10.9	13.9	8.5	15.8
OC	1.54	8.7	6.8	7.7		9.3
RGLD	1.34	34	14.2	9.9	13.3	11.2
MA	0.54	15.1	21.4	19.1	39.6	19.6
A	0.52	-34.6	9.7	5		5.5
MORN	0.42	6	8.6	8.5	28.5	8.9

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Conclusion

2022 starts with eleven significant increases. We have the whole gamut from a dividend king continuing their 54-year streak and seven other companies with 10%+ increases. I hope you enjoy the New Year's celebrations and any dividend increases you have!

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

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MA 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.