This article was co-produced with James Marino Sr. of Portfolio Insight.
In this article series, we summarize upcoming ex-dividend dates for stocks in Dividend Radar, a weekly automatically generated spreadsheet of dividend growth stocks with dividend increase streaks of at least five years.
To earn the next dividend, be sure to buy a stock before the ex-dividend date, which is usually one business day before the record date. If you wait until the ex-dividend date or thereafter, unfortunately, you won't receive the next dividend payment! Instead, the seller will receive the next dividend.
The following table presents a summary of ex-dividend dates for the next two weeks. The table is divided into sections by Ex-Div Date and sorted by Ticker for each date. Yrs are years of consecutive dividend increases, Yield is the new dividend yield for the market close Price on the date listed, and 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period (on a trailing 12-month basis). Note that Payout is the dollar amount payable per share or unit on the Pay Date.
|Ex-Div Date: 04/29 (Last Day to Buy: Thursday, 04/28)|
|Ally Financial (ALLY)||6||$40.21||2.98%||32.8%||0.3||05/16|
|Aon plc (AON)||11||$311.22||0.66%||9.1%||0.56||05/13|
|Bank of Montreal (BMO)||7||$107.64||3.89%||6.5%||1.33||05/26|
|Sierra Bancorp (BSRR)||10||$22.40||4.11%||12.0%||0.23||05/12|
|Casey's General Stores (CASY)||23||$208.18||0.67%||8.0%||0.35||05/16|
|East West Bancorp (EWBC)||5||$71.90||2.23%||11.7%||0.4||05/16|
|Home Federal Bancorp of Louisiana (HFBL)||9||$20.50||1.95%||16.9%||0.1||05/16|
|Hingham Institution for Savings (HIFS)||15||$325.25||0.68%||10.9%||0.57||05/11|
|Kinder Morgan (KMI)||5||$18.40||5.87%||16.7%||0.278||05/16|
|Magellan Midstream Partners (MMP)||21||$50.07||8.29%||4.5%||1.038||05/13|
|Realty Income (O)||28||$71.66||4.14%||3.4%||0.247||05/13|
|Orrstown Financial Services (ORRF)||7||$24.36||3.12%||15.2%||0.19||05/09|
|Pinnacle West Capital (PNW)||11||$74.41||4.57%||5.6%||0.85||06/01|
|Value Line (VALU)||8||$57.52||1.53%||5.3%||0.25||05/11|
|Ex-Div Date: 05/02 (Last Day to Buy: Friday, 04/29)|
|Main Street Capital (MAIN)||11||$41.02||6.29%||0.9%||0.215||05/13|
|1st Source (SRCE)||35||$44.20||2.81%||11.3%||0.31||05/13|
|Ex-Div Date: 05/03 (Last Day to Buy: Monday, 05/02)|
|Heritage Financial (HFWA)||11||$24.68||3.40%||11.3%||0.21||05/18|
|Ex-Div Date: 05/04 (Last Day to Buy: Tuesday, 05/03)|
|Armstrong World Industries (AWI)||5||$86.47||1.07%||N/A||0.231||05/19|
|Cambridge Bancorp (CATC)||24||$84.18||3.04%||6.1%||0.64||05/19|
|Cheniere Energy Partners (CQP)||5||$53.45||5.24%||9.7%||0.775||05/13|
|Delek Logistics Partners (DKL)||10||$49.55||7.87%||8.0%||0.98||05/12|
|Franklin Electric (FELE)||30||$71.99||1.08%||12.5%||0.195||05/19|
|Hess Midstream (HESM)||5||$29.99||6.89%||N/A||0.55||05/13|
|Independent Bank (IBCP)||8||$20.51||4.29%||18.8%||0.22||05/16|
|Independent Bank (IBTX)||9||$69.48||2.19%||31.2%||0.38||05/19|
|Landstar System (LSTR)||9||$153.60||0.65%||22.4%||0.25||05/27|
|NextEra Energy Partners (NEP)||8||$68.02||4.16%||14.9%||0.733||05/12|
|Northwest Bancshares (NWBI)||13||$12.75||6.27%||5.6%||0.2||05/16|
|S&T Bancorp (STBA)||10||$28.49||4.07%||7.9%||0.3||05/19|
|Constellation Brands (STZ)||7||$249.31||1.22%||13.7%||0.8||05/19|
|Constellation Brands (STZ.B)||7||$281.51||0.98%||13.9%||0.72||05/19|
|Ex-Div Date: 05/05 (Last Day to Buy: Wednesday, 05/04)|
|Bank of Marin Bancorp (BMRC)||17||$30.32||3.17%||12.8%||0.24||05/13|
|Colony Bankcorp (CBAN)||5||$17.08||2.52%||75.4%||0.108||05/20|
|CMS Energy (CMS)||16||$70.21||2.62%||6.9%||0.46||05/31|
|Central Valley Community Bancorp (CVCY)||5||$19.88||2.41%||14.9%||0.12||05/20|
|First Commonwealth Financial (FCF)||6||$13.83||3.33%||9.7%||0.12||05/20|
|Franklin Financial Services (FRAF)||8||$32.04||4.00%||8.6%||0.32||05/25|
|Lamb Weston (LW)||6||$66.84||1.47%||38.3%||0.245||06/03|
|Sirius XM (SIRI)||6||$5.97||1.51%||29.6%||0.022||05/25|
Previous Post: Upcoming Ex-Dividend Dates: April 22-May 5, 2022
To assess the quality of dividend growth stocks, we use DVK Quality Snapshots, an elegant and effective system devised by David Van Knapp. The system employs five quality indicators and assigns 0-5 points to each quality indicator, for a maximum quality score of 25 points.
We assign quality scores to every Dividend Radar stock with upcoming ex-dates. This week, we screened for the stocks with quality scores of 21 or higher, finding five candidates.
Below we present the quality scores, an assessment of fair value (whether Above, At, or Below fair value), and two measures of each stock's recent performance (1-year and 3-year trailing total returns [TTR]). Key metrics from the previous table are repeated here for convenience.
Dividend Radar regards fair value as a range. One stock in this week's shortlist is trading within the fair value range (IDA), while two stocks are trading at premium valuations above the fair value range (AON and WMT) and two stocks are trading at discounted valuations below the fair value range (INTC and LSTR).
TTR adds the returns due to stock price appreciation (or depreciation) and dividend payments over each time frame. Dividend Radar provides 1-year and 3-year TTRs. In the summary table, we highlight 3-year TTRs of 10% or higher in orange, and 1-year TRRs that exceed the 3-year TTR, in green (indicating stronger recent performance).
Three of this week's candidates have 3-year TTRs above 10% (AON, LSTR, and WMT), and two candidates have 1-year TTRs that exceed their 3-year TTRs (AON and IDA).
We also color-code the Yield and 5-yr DGR columns, preferring dividend yields above 2.5% and 5-year dividend growth rates of 10% or higher.
IDA and INTC yield more than 2.5%, while LSTR has a 5-year dividend growth rate above 10%.
Ideally, we'd like to see green cells in each of the Fair Value, 1-yr TTR, Yield, and 5-yr DGR columns. That rarely happens, though, so we look for a candidate that offers the best metrics overall, at least based on our current investment objectives.
We've already focused on INTC and WMT, so let's look at Dividend Contender IDA this week.
Founded in 1915 and headquartered in Boise, Idaho, IDACORP is a holding company engaged in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydroelectric generating plants in southern Idaho and eastern Oregon, and three natural gas-fired plants in southern Idaho.
IDA is rated Fine (quality score 19-22):
The stock yields 2.76% at $108.67 per share and has a 5-year DGR of 6.6%.
Over the past 10 years, IDA slightly underperformed the SPDR S&P 500 ETF (SPY), an ETF designed to track the 500 companies in the S&P 500 index:
IDA delivered total returns of 255% versus SPY's 260%, a margin of 0.98-to-1.
If we extend the time frame of comparison to the past 20 years, IDA slightly outperformed SPY, returning 489% versus SPY's 471%. That's a margin of 1.04-to-1.
Here is a chart showing IDA's dividend growth history through the end of 2021:
I love dividend growth charts such as IDA's, which show steady dividend growth over many years! One thing to point out is that IDA's dividend growth rate [DGR] is decelerating, which we can see by dividing the 5-year DGR by the 10-year counterpart: 6.72 ÷ 9.15 = 0.73. A ratio below 1.00 means deceleration.
The company's EPS history likewise is impressive, with increases every year for the past ten years! Earnings estimates for FY 2023 and FY 2024 look strong, too!
IDA's payout ratio of 59% is "low for utilities", according to Simply Safe Dividends:
The company has plenty of room to continue paying and raising its dividend. Moreover, Simply Safe Dividends considers IDA's dividend Safe with a Dividend Safety Score of 84.
Let's now consider IDA's valuation.
A quick way to estimate fair value is to divide the annualized dividend ($3.00) by the stock's 5-year average yield (2.67%). That results in a fair value [FV] estimate of $112 based on IDA's dividend yield history.
For reference, Simply Wall St's FV is $96, Morningstar's FV is $99, Finbox.com's FV is $113, and Portfolio Insight's FV is $113.
My own FV estimate of IDA is $109.
The average of all these estimates is $107. IDA is currently trading above $108.
Here are the most recent Seeking Alpha articles covering IDA:
Conclusion: IDA is a high-quality dividend growth stock trading just below my fair value estimate of $109. For stocks rated Fine, I require a discounted valuation relative to my fair value estimate, so my Buy Below price is $109 per share. For conservative investors, a buy below $98 would be more appropriate.
Please note that we're not recommending IDA or any of the stocks listed in this article. Readers should do their own research on these companies before buying shares.
This article was written by
Disclosure: I/we have a beneficial long position in the shares of INTC 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.