Dividend Increases: January 15-21, 2022

Jan. 25, 2022 9:15 AM ETBSRR, DKL, EBTC, ED, FAST, GHC, JBHT, LNT, MBWM, NBHC, UNB15 Comments26 Likes
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FerdiS
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Summary

  • In this article series, we provide a weekly summary of dividend changes.
  • A table with relevant data and key statistics of dividend increases is provided.
  • We highlight one of the stocks that announced a dividend increase, providing a quality assessment and performance, earnings, and valuation charts.

J.B. Hunt Shipping Truck

RiverNorthPhotography/iStock Unreleased via Getty Images

We monitor dividend changes of stocks in Dividend Radar, a weekly automatically generated spreadsheet listing stocks with dividend streaks of five years or more. The Dividend Radar spreadsheet separates stocks into three categories: Champions (with increase streaks of 25+ years), Contenders (10-24 years), and Challengers (5-9 years).

In the past week, eleven companies in Dividend Radar decided to increase their dividends. 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, 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: January 15-21, 2022
Key metrics of stocks that increased their dividends recently

Created by the author with data from Portfolio Insight

Previous Post: Dividend Increases: December 25, 2021-January 14, 2022

The following dividend increase data are sorted alphabetically by ticker.

Company descriptions are the author's summary of company descriptions sourced from Finviz.

Sierra Bancorp (BSRR)

BSRR operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. The company offers various deposit, loan, and financial management products and services. BSRR was founded in 1977 and is headquartered in Porterville, California.

  • On Jan 21, BSRR declared a quarterly dividend of 23¢ per share.
  • This is an increase of 4.55% from the prior dividend of 22¢.
  • Payable Feb 14, to shareholders of record on Jan 31; ex-div: Jan 28.

Delek Logistics Partners, LP (DKL)

DKL owns and operates logistics and marketing assets for crude oil, as well as intermediate and refined products in the United States. The company operates in two segments, Pipelines and Transportation, and Wholesale Marketing and Terminalling. DKL was founded in 2012 and is headquartered in Brentwood, Tennessee.

  • On Jan 21, DKL declared a quarterly distribution of 97.5¢ per unit.
  • This is an increase of 2.63% from the prior distribution of 95¢.
  • Payable Feb 8, to unitholders of record on Feb 1; ex-div: Jan 31.

Enterprise Bancorp, Inc. (EBTC)

EBTC operates as the holding company for Enterprise Bank and Trust Company, which provides banking products and services primarily in Massachusetts and New Hampshire. The company offers various deposit and loan products, as well as a variety of financial management services and insurance products. EBTC was founded in 1989 and is headquartered in Lowell, Massachusetts.

  • On Jan 18, EBTC declared a quarterly dividend of 20.5¢ per share.
  • This is an increase of 10.81% from the prior dividend of 18.5¢.
  • Payable Mar 1, to shareholders of record on Feb 8; ex-div: Feb 7.

Consolidated Edison, Inc. (ED)

ED delivers electricity, gas, and steam. The company provides electric services to customers in New York City and Westchester County; gas to customers in Manhattan, the Bronx, and parts of Queens and Westchester County; and steam to customers in parts of Manhattan. ED was founded in 1884 and is based in New York, New York.

  • On Jan 20, ED declared a quarterly dividend of 79¢ per share.
  • This is an increase of 1.28% from the prior dividend of 78¢.
  • Payable Mar 15, to shareholders of record on Feb 16; ex-div: Feb 15.

Fastenal Company (FAST)

FAST sells industrial and construction supplies, including threaded fasteners such as bolts, nuts, screws, studs, and related washers, in the United States, Canada, and internationally. The company distributes the supplies through a network of company-owned stores. Customers are in the manufacturing and non-residential construction markets. FAST was founded in 1967 and is headquartered in Winona, Minnesota.

  • On Jan 18, FAST declared a quarterly dividend of 31¢ per share.
  • This is an increase of 10.71% from the prior dividend of 28¢.
  • Payable Mar 2, to shareholders of record on Feb 2; ex-div: Feb 1.

Graham Holdings Company (GHC)

Formerly known as The Washington Post Company, GHC operates as a diversified education and media company. The company provides various test preparation services and materials. It also operates three colleges, seven television stations, and thirteen restaurants, and publishes Slate, an online magazine. GHC was founded in 1877 and is based in Arlington, Virginia.

  • On Jan 20, GHC declared a quarterly dividend of $1.58 per share.
  • This is an increase of 4.64% from the prior dividend of $1.51.
  • Payable Feb 17, to shareholders of record on Feb 3; ex-div: Feb 2.

J.B. Hunt Transport Services, Inc. (JBHT)

JBHT, together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. It operates through four segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, and Truckload. The company also transports or arranges for the transportation of freight. JBHT was founded in 1961 and is headquartered in Lowell, Arkansas.

  • On Jan 20, JBHT declared a quarterly dividend of 40¢ per share.
  • This is an increase of 33.33% from the prior dividend of 30¢.
  • Payable Feb 18, to shareholders of record on Feb 4; ex-div: Feb 3.

Alliant Energy Corporation (LNT)

LNT operates as a regulated investor-owned public utility holding company. LNT provides electricity and natural gas services to customers in the U.S. Midwest through two subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company. LNT was founded in 1917 and is headquartered in Madison, Wisconsin.

  • On Jan 21, LNT declared a quarterly dividend of 42.75¢ per share.
  • This is an increase of 6.21% from the prior dividend of 40.25¢.
  • Payable Feb 15, to shareholders of record on Jan 31; ex-div: Jan 28.

Mercantile Bank Corporation (MBWM)

MBWM operates as the bank holding company for Mercantile Bank of Michigan, which provides commercial and retail banking services for small- to medium-sized businesses and individuals in the United States. The company offers various deposit, loan, and insurance products. MBWM was founded in 1997 and is headquartered in Grand Rapids, Michigan.

  • On Jan 18, MBWM declared a quarterly dividend of 31¢ per share.
  • This is an increase of 3.33% from the prior dividend of 30¢.
  • Payable Mar 16, to shareholders of record on Mar 4; ex-div: Mar 3.

National Bank Holdings Corporation (NBHC)

NBHC operates as the bank holding company for NBH Bank, N.A. that provides various banking products and financial services to commercial, business, and consumer clients in the states of Colorado, Missouri, New Mexico, and Texas. NBHC was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

  • On Jan 20, NBHC declared a quarterly dividend of 23¢ per share.
  • This is an increase of 4.55% from the prior dividend of 22¢.
  • Payable Mar 15, to shareholders of record on Feb 25; ex-div: Feb 24.

Union Bankshares, Inc. (UNB)

Founded in 1891 and headquartered in Morrisville, Vermont, UNB operates as the bank holding company for Union Bank. UNB offers retail banking services to individuals; and commercial banking services to small and medium-sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts in Vermont and New Hampshire.

  • On Jan 19, UNB declared a quarterly dividend of 35¢ per share.
  • This is an increase of 6.06% from the prior dividend of 33¢.
  • Payable Feb 3, to shareholders of record on Jan 29; ex-div: Jan 27.

Please note that we're not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Dividend Cuts and Suspensions

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.

An Interesting Candidate

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:

Key metrics of shortlist of high-quality stocks, including quality score

Created by the author with data from Portfolio Insight

Three stocks made the shortlist this week, all rated Fine.

JBHT is by far the best performer over the past 20 years, so let's look at this Dividend Contender this week!

Chart showing performance comparison of shortlist stocks

Portfolio Insight

JBHT yields only 0.80% at $198.95 per share and offers a modest 5-year DGR of 6.1%.

JBHT is rated Fine (quality score: 19-22):

Chart showing DVK quality score of the focus stock JBHT

Created by the author from personal spreadsheet

Over the past ten years, JBHT slightly outperformed the SPDR S&P 500 ETF (SPY), an ETF designed to track the 500 companies in the S&P 500 index:

Performance comparison of focus stock JBHT and SPY

Portfolio Insight

Over this time frame, JBHT delivered total returns of 350% versus SPY's 328%, a margin of 1.07-to-1.

If we extend the period of comparison to the past twenty years, JBHT absolutely crushed SPY, with total returns of 3,330% versus SPY's 502% (a margin of 6.63-to-1)!

JBHT has a solid dividend growth history:

10-year dividend growth history of JBHT

Portfolio Insight

As mentioned earlier, JBHT is a Dividend Contender with 18 consecutive years of dividend increases. The chart above appears to show otherwise, with an apparent decrease in 2013. Like many US companies, JBHT paid its first dividend of 2013 in December 2012 to beat a scheduled increase in the dividend tax:

Dividend schedule of JBHT

Portfolio Insight

We count that increase as if it was paid in 2013 when determining JBHT's dividend increase streak.

While JBHT's earnings have been growing impressively over the past decade, the growth is somewhat inconsistent with several down years:

10-year earnings growth history of JBHT

Portfolio Insight

On the other hand, EPS estimates for FY 2022 and FY 2023 look impressive!

At 16%, JBHT's earnings payout ratio is "very low for most companies", according to Simply Safe Dividends:

10-year history of earnings payout ratio of JBHT

Simply Safe Dividends

This means JBHT has plenty of room to grow its dividend!

Next, let's now consider JBHT's valuation. We could estimate fair value by dividing the stock's annualized dividend ($1.60) by its 5-year average yield (0.87%). This results in a fair value [FV] estimate of $184. Given JBHT's current price of $198.95, the stock is trading at a premium relative to its past dividend yield history.

For reference, Simply Wall St's FV is $100, Morningstar's FV is $144, CFRA's FV is $174, and Finbox.com's FV is $211. The average of these fair value estimates is $157, also indicating that JBHT's may be overvalued.

My own FV estimate of JBHT is $181, so I believe the stock is trading at a premium of about 9.9%.

Here are the most recent Seeking Alpha articles covering JBHT, all rated Hold:

  1. J.B. Hunt Transport Services: Short Puts Are More Compelling, by Patrick Doyle
  2. J.B. Hunt Transport Services Inc.: Tapping The Brakes After Blowout Quarter, by BOOX Research
  3. J.B. Hunt Delivering Stronger Results Through Challenging Times, by Stephen Simpson

Conclusion

JBHT 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 JBHT is $181. For conservative investors, look to buy below $163 per share.

Please note that we're not recommending JBHT 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

FerdiS profile picture
26.09K Followers
FerdiS invests in dividend growth stocks and writes options to boost dividend income. He manages DivGro, a portfolio of mainly dividend growth stocks created in January 2013. With investment and trading experience spanning nearly 20 years, FerdiS enjoys writing articles about dividend growth investing, options trading, stock selection, portfolio management, and passive income generation. His DivGro blog hosts more than 1,000 posts and a live, public spreadsheet with full details of his DivGro portfolio, allowing readers to follow along in his investment journey. FerdiS is collaborating with the founders of Portfolio Insight, an online platform for portfolio management and investment analysis. Together, we maintain and publish Dividend Radar, a free spreadsheet of dividend growth stocks, on a weekly basis.
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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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