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, sixteen companies in Dividend Radar announced dividend increases, including three of the stocks I own. Note there were no dividend cuts or suspensions announced for Dividend Radar stocks during this period.
The following table provides 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: April 16-22, 2022|
|Previous Post: Dividend Increases: March 19-April 15, 2022|
The following dividend increase data are sorted alphabetically by ticker.
Company descriptions are the author's summary of company descriptions sourced from Finviz.
BHB provides commercial, retail, and wealth management banking products and services in Maine, New Hampshire, and Vermont. It provides various deposit and loan products, life insurance, annuity, and retirement products, as well as financial planning services. BHB was founded in 1887 and is based in Bar Harbor, Maine.
DGICA, an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. DGICA was founded in 1986 and is headquartered in Marietta, Pennsylvania.
DGICB, an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. DGICB was founded in 1986 and is headquartered in Marietta, Pennsylvania.
HCSG provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers, and hospitals located throughout the United States. HCSG was founded in 1976 and is based in Bensalem, Pennsylvania.
Founded in 1886 and based in New Brunswick, New Jersey, JNJ has grown into one of the largest companies in the world. The company is a leader in the pharmaceutical, medical device, and consumer products industries. JNJ distributes its products to the general public, retail outlets and distributors, wholesalers, hospitals, and health care professionals.
LAD operates as an automotive retailer in the United States. The company offers new and used vehicles; vehicle financing services; warranties, insurance contracts, vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle bodies and parts. LAD was founded in 1946 and is headquartered in Medford, Oregon.
NDAQ is a holding company that provides trading, clearing, exchange technology, regulatory, securities listing, information, and public company services across six continents. As the creator of the first electronic stock market, the company’s technology powers more than 70 marketplaces in 50 countries. NDAQ was founded in 1971 and is headquartered in New York, New York.
NEP acquires, owns, and operates contracted clean energy projects in the United States and Canada. The company owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as seven contracted natural gas pipeline assets. NEP was founded in 2014 and is based in Juno Beach, Florida.
Founded in 1930 and headquartered in Portland, Oregon, POR is a vertically integrated electric utility engaged in the generation, purchase, transmission, distribution, and retail sale of electricity. The company serves residential, commercial, and industrial customers in Oregon. POR generates power from a diverse mix of resources, including hydropower, coal, and natural gas.
Headquartered in Waltham, Massachusetts, RTX is a global aerospace and defense company serving commercial, military, and government customers. It operates through four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. RTX was formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation.
SO, along with its subsidiaries, operates as a public electric utility company. The company constructs, acquires, owns, and manages generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. SO was founded in 1945 and is headquartered in Atlanta, Georgia.
SON manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company sells its products in various markets, including paper, textile, film, food, chemical, packaging, construction, and wire and cable. SON was founded in 1899 and is headquartered in Hartsville, South Carolina.
Founded in 1902 and headquartered in Indiana, Pennsylvania, STBA is the bank holding company for S&T Bank. It provides retail and commercial banking products and services in Pennsylvania, Ohio, and western New York. STBA company accepts time and demand deposits and offers commercial and consumer loans, cash management services, and brokerage and trust services.
TRV provides commercial and personal property and casualty insurance products and services to individuals, associations, businesses, and government entities primarily in the United States. The company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. TRV was founded in 1853 and based in New York, New York.
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.
VALU, together with its subsidiaries, produces and sells investment periodicals and related publications primarily in the United States. The company's investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange-traded funds, options, and convertible securities. VALU was founded in 1931 and is headquartered in New York, New York.
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:
Let's look at Dividend Contender TRV in this article. TRV yields 2.13% at $174.50 per share and has a 5-year dividend growth rate [DGR] of 5.6%.
TRV is rated Fine (quality score: 19-22):
Over the past ten years, TRV underperformed 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, TRV delivered total returns of 236% versus SPY's 254%, a margin of 0.93-to-1.
However, if we extend the period of comparison to the past twenty years, TRV easily outperformed SPY by a margin of 1.57-to-1. TRV delivered total returns of 711% versus SPY's 454%!
TRV's dividend growth history is impressive:
The dividend growth rate [DGR] is decelerating, though, as can be seen by dividing the 5-year DGR by the 10-year DGR: 5.90 ÷ 8.18 = 0.72. A ratio below 1.00 means the DGR is decelerating.
TRV's earnings are growing, too, but not as consistently:
At 23%, TRV's earnings payout ratio is "Very low for P&C insurers", according to Simply Safe Dividends:
TRV has plenty of room to continue growing its dividend for the foreseeable future. Simply Safe Dividends considers TRV's dividend Safe, with a Dividend Safety Score of 78.
Next, let's now consider TRV's valuation.
We could estimate fair value by dividing the stock's annualized dividend ($3.72) by its 5-year average yield (2.37%). This results in a fair value [FV] estimate of $157. Given TRV's current price of $174.50, the stock is trading at a premium valuation relative to its past dividend yield history.
For reference, CFRA's FV is $159, Portfolio Insight's FV is $171, Morningstar's FV is $178, and Finbox.com's FV is $196. The average of these fair value estimates is $176, indicating that TRV may be trading at a slight discount to fair value.
My own FV estimate of TRV is $173, so I believe the stock is about fairly valued.
Here are the most recent Seeking Alpha articles covering TRV:
TRV is a high-quality DG stock rated Fine. For stocks rated Fine, I require a discount to my fair value estimate. Therefore, my Buy Below price is $173. For conservative investors, look to buy below $156.
Please note that I'm not recommending TRV 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 JNJ, RTX, TRV 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.