Dividend Increases: April 16-22, 2022

Summary

• In this article series, we cover dividend changes.
• A summary table provides relevant data and key statistics on dividend increases.
• We highlight one of the stocks that announced a dividend increase and present performance, valuation, and earnings charts.

Eoneren/E+ 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, 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

Created by the authors from data in Dividend Radar.

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.

Bar Harbor Bankshares (BHB)

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.

• On Apr 21, BHB declared a quarterly dividend of 26¢ per share.
• This is an increase of 8.33% from the prior dividend of 24¢.
• Payable Jun 17, to shareholders of record on May 17; ex-div: May 16.

Donegal (DGICA)

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.

• On Apr 21, DGICA declared a quarterly dividend of 16.5¢ per share.
• This is an increase of 3.13% from the prior dividend of 16¢.
• Payable May 16, to shareholders of record on May 2; ex-div: Apr 29.

Donegal (DGICB)

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.

• On Apr 21, DGICB declared a quarterly dividend of 14.75¢ per share.
• This is an increase of 3.51% from the prior dividend of 14.25¢.
• Payable May 16, to shareholders of record on May 2; ex-div: Apr 29.

Healthcare Services (HCSG)

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.

• On Apr 20, HCSG declared a quarterly dividend of 21.25¢ per share.
• This is an increase of 0.57% from the prior dividend of 21.13¢.
• Payable Jun 24, to shareholders of record on May 20; ex-div: May 19.

Johnson & Johnson (JNJ)

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.

• On Apr 19, JNJ declared a quarterly dividend of $1.13 per share.
• This is an increase of 6.60% from the prior dividend of $1.06.
• Payable Jun 7, to shareholders of record on May 24; ex-div: May 23.

Lithia Motors (LAD)

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.

• On Apr 20, LAD declared a quarterly dividend of 42¢ per share.
• This is an increase of 20.00% from the prior dividend of 35¢.
• Payable May 27, to shareholders of record on May 13; ex-div: May 12.

Nasdaq (NDAQ)

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.

• On Apr 20, NDAQ declared a quarterly dividend of 60¢ per share.
• This is an increase of 11.11% from the prior dividend of 54¢.
• Payable Jun 24, to shareholders of record on Jun 10; ex-div: Jun 9.

NextEra Energy Partners (NEP)

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.

• On Apr 21, NEP declared a quarterly distribution of 73.25¢ per unit.
• This is an increase of 3.53% from the prior distribution of 70.75¢.
• Payable May 12, to unitholders of record on May 5; ex-div: May 4.

Portland General Electric (POR)

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.

• On Apr 22, POR declared a quarterly dividend of 45¢ per share.
• This is an increase of 4.65% from the prior dividend of 43¢.
• Payable Jul 15, to shareholders of record on Jun 27; ex-div: Jun 24.

Raytheon Technologies (RTX)

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.

• On Apr 21, RTX declared a quarterly dividend of 55¢ per share.
• This is an increase of 7.84% from the prior dividend of 51¢.
• Payable Jun 16, to shareholders of record on May 20; ex-div: May 19.

Southern (SO)

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.

• On Apr 19, SO declared a quarterly dividend of 68¢ per share.
• This is an increase of 3.03% from the prior dividend of 66¢.
• Payable Jun 6, to shareholders of record on May 16; ex-div: May 13.

Sonoco Products (SON)

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.

• On Apr 20, SON declared a quarterly dividend of 49¢ per share.
• This is an increase of 8.89% from the prior dividend of 45¢.
• Payable Jun 10, to shareholders of record on May 10; ex-div: May 9.

S&T Bancorp (STBA)

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.

• On Apr 19, STBA declared a quarterly dividend of 30¢ per share.
• This is an increase of 3.45% from the prior dividend of 29¢.
• Payable May 19, to shareholders of record on May 5; ex-div: May 4.

Travelers (TRV)

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.

• On Apr 19, TRV declared a quarterly dividend of 93¢ per share.
• This is an increase of 5.68% from the prior dividend of 88¢.
• Payable Jun 30, to shareholders of record on Jun 10; ex-div: Jun 9.

United Bancorp (UBCP)

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.

• On Apr 21, UBCP declared a semi-annual dividend of 15.5¢ per share.
• This is an increase of 1.97% from the prior dividend of 15.2¢.
• Payable Jun 17, to shareholders of record on Jun 10; ex-div: Jun 9.

Value Line (VALU)

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.

• On Apr 22, VALU declared a quarterly dividend of 25¢ per share.
• This is an increase of 13.64% from the prior dividend of 22¢.
• Payable May 11, to shareholders of record on May 2; ex-div: Apr 29.

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:

Created by the authors from data in Dividend Radar

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):

Created by the author from a personal spreadsheet

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:

Portfolio-Insight.com

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:

Portfolio-Insight.com

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:

Portfolio-Insight.com

At 23%, TRV's earnings payout ratio is "Very low for P&C insurers", according to Simply Safe Dividends:

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.

Portfolio-Insight.com

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:

1. Hold: Travelers: Conservative Nature Continues To Show In Results, by Power Hedge
2. Buy: Travelers Will Earn Investors Economic Profits, by Mike Thomas
3. Strong Buy: Travelers Companies: 7.7% Shareholder Return Makes It A Winner. Boring Is Beautiful!, by Jim Sloan

Conclusion

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!

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.