Dividend Increases: April 30-May 6, 2022

May 21, 2022 2:28 PM ETABR, CNO, IEX, MAN, MTRN, NHC, POOL, RLI, SPY, TKR, TTEK11 Comments13 Likes
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FerdiS
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Summary

  • This article series covers dividend changes on a weekly basis.
  • A table with relevant data and key statistics of dividend increases is provided.
  • We highlight one stock worth your consideration.
  • 10 companies announced dividend increases in this period.

Businessman draws increase arrow graph corporate future growth year 2021 to 2022. Development to success and motivation.

Galeanu Mihai/iStock 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 categories based on the length of the streak: Champions (25+ years), Contenders (10- 24 years), and Challengers (5-9 years).

This past week, 10 companies in Dividend Radar decided to increase their dividends. Note that no dividend cuts or suspensions were announced for Dividend Radar stocks.

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: April 30-May 6, 2022
Summary of dividend increases

Created by the authors from data in Dividend Radar

Previous Post: Dividend Increases: April 23-29, 2022

The following dividend increase data are sorted alphabetically by ticker.

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

Arbor Realty (ABR)

ABR invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company primarily invests in real estate-related bridge and mezzanine loans, real estate-related notes, and mortgage-related securities. ABR was founded in 2003 and is headquartered in Uniondale, New York.

  • On May 6, ABR declared a quarterly dividend of 38¢ per share.
  • This is an increase of 2.70% from the prior dividend of 37¢.
  • Payable May 31, to shareholders of record on May 20; ex-div: May 19.

CNO Financial (CNO)

CNO is a holding company for a group of insurance companies operating throughout the United States. The company develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets. CNO was founded in 1979 and is headquartered in Carmel, Indiana.

  • On May 6, CNO declared a quarterly dividend of 14¢ per share.
  • This is an increase of 7.69% from the prior dividend of 13¢.
  • Payable Jun 24, to shareholders of record on Jun 10; ex-div: Jun 9.

Idex (IEX)

IEX is an applied solutions company with 40 diverse businesses operating in more than 20 countries. The company operates through Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products segments. IEX was incorporated in 1987 and is headquartered in Lake Forest, Illinois.

  • On May 6, IEX declared a quarterly dividend of 60¢ per share.
  • This is an increase of 11.11% from the prior dividend of 54¢.
  • Payable May 27, to shareholders of record on May 17; ex-div: May 16.

ManpowerGroup (MAN)

MAN provides workforce solutions and services in the Americas, Europe, and the Asia Pacific Middle East region. The company’s recruitment services include permanent, temporary, and contract recruitment. It also offers career management, training and development, and outsourcing of human resources functions. MAN was founded in 1948 and is headquartered in Milwaukee, Wisconsin.

  • On May 6, MAN declared a semi-annual dividend of $1.36 per share.
  • This is an increase of 7.94% from the prior dividend of $1.26.
  • Payable Jun 15, to shareholders of record on Jun 1; ex-div: May 31.

Materion (MTRN)

Formerly known as Brush Engineered Materials Inc, MTRN manufactures and sells advanced engineered materials used in consumer electronics, industrial components, defense, medical, automotive electronics, telecommunications infrastructure, energy, commercial aerospace, science, services, and appliance markets worldwide. MTRN was founded in 1931 and is headquartered in Mayfield Heights, Ohio.

  • On May 4, MTRN declared a quarterly dividend of 12.5¢ per share.
  • This is an increase of 4.17% from the prior dividend of 12¢.
  • Payable Jun 16, to shareholders of record on May 27; ex-div: May 26.

National HealthCare (NHC)

NHC is engaged in the operation of skilled nursing facilities with associated assisted living and independent living centers in the USA. The company provides sub-acute skilled and post-acute skilled nursing care, intermediate nursing care, rehabilitative care, senior living services, and home healthcare services. NHC was founded in 1971 and is based in Murfreesboro, Tennessee.

  • On May 5, NHC declared a quarterly dividend of 57¢ per share.
  • This is an increase of 3.64% from the prior dividend of 55¢.
  • Payable Aug 1, to shareholders of record on Jun 30; ex-div: Jun 29.

Pool (POOL)

Founded in 1993 and headquartered in Covington, Louisiana, POOL distributes swimming pool supplies, equipment, and related leisure products in North America and internationally. POOL offers maintenance products, repair and replacement parts for pool equipment, packaged pool kits, pool equipment and components for new pool construction, remodeling of existing pools, and irrigation and landscape products.

  • On May 4, POOL declared a quarterly dividend of $1.00 per share.
  • This is an increase of 25.00% from the prior dividend of 80¢.
  • Payable May 27, to shareholders of record on May 16; ex-div: May 13.

RLI (RLI)

RLI is an insurance holding company that underwrites property and casualty insurance in the United States and internationally. The company also underwrites various reinsurance coverages. It operates in the Casualty, Property, and Surety segments and markets its products through branch offices and independent agents. RLI was founded in 1965 and is headquartered in Peoria, Illinois.

  • On May 5, RLI declared a quarterly dividend of 26¢ per share.
  • This is an increase of 4.00% from the prior dividend of 25¢.
  • Payable Jun 21, to shareholders of record on May 31; ex-div: May 27.

Timken (TKR)

TKR was founded in 1899 and is headquartered in North Canton, Ohio. The company’s Mobile Industries segment offers bearings, seals, and lubrication devices and systems. It also offers power transmission systems and flight-critical components for civil and military aircraft. TKR’s Process Industries segment supplies industrial bearings and assemblies, power transmission components, and linear motion products.

  • On May 6, TKR declared a quarterly dividend of 31¢ per share.
  • This is an increase of 3.33% from the prior dividend of 30¢.
  • Payable Jun 2, to shareholders of record on May 16; ex-div: May 13.

Tetra Tech (TTEK)

TTEK provides consulting and engineering services worldwide. The company offers early data collection and monitoring, data analysis and information, science and engineering applied research, feasibility studies and assessments, climate change and energy management consulting, and greenhouse gas inventory assessment, certification, reduction, and management services. TTEK was founded in 1966 and is headquartered in Pasadena, California.

  • On May 4, TTEK declared a quarterly dividend of 23¢ per share.
  • This is an increase of 15.00% from the prior dividend of 20¢.
  • Payable May 27, to shareholders of record on May 13; ex-div: May 12.

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

We've added this section to our weekly article series following requests from readers. 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

This section highlights 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 tough, 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 18-25:

Summary table and key metrics of high-quality stocks that announced dividend increases.

Created by the authors from data in Dividend Radar

Let's look at Dividend Contender IEX in this article. The stock yields 0.99% at $217.44 per share and has a 5-year dividend growth rate [DGR] of 9.3%.

IEX is rated Decent (quality score: 15-18):

Quality score breakdown of highlighted stock

Created by the author from a personal spreadsheet

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

Chart showing how IEX underperformed the SPY over the past decade

Portfolio-Insight.com

Over this time frame, IEX delivered total returns of 450% versus SPY's 266%, a margin of 1.69-to-1.

If we extend the period of comparison to the past twenty years, IEX's outperformance is even more significant: a margin of 3.30-to-1. IEX delivered total returns of 1,398% versus SPY's 424%!

IEX's dividend growth history is a model of consistency:

Chart of IEX's 10-year dividend growth history

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: 9.61 ÷ 12.38 = 0.78. A ratio below 1.00 means the DGR is decelerating.

IEX's earnings are growing, too, but not as consistently:

Chart of IEX's 10-year Non-GAAP earnings growth history

Portfolio-Insight.com

It is good to see that FY 2022 and FY 2023 will continue the upward trend if realized.

At 33%, IEX's earnings payout ratio is "low for most companies," according to Simply Safe Dividends:

Chart of IEX's 10-year history of earnings and free cash flow payout

Simply Safe Dividends

IEX has plenty of room to continue growing its dividend for the foreseeable future. Simply Safe Dividends considers IEX's dividend Very Safe, with a Dividend Safety Score of 95.

Next, let's now consider IEX's valuation.

Snapshot of IEX's valuation and key metrics, courtesy of Portfolio Insight

Portfolio-Insight.com

We could estimate fair value by dividing the stock's annualized dividend ($2.40) by its 5-year average yield (1.14%). This results in a fair value [FV] estimate of $211. Given IEX's current price of $217.44, the stock is trading at a premium valuation relative to its past dividend yield history.

For reference, Morningstar's FV is $185, Finbox.com's FV is $207, Portfolio Insight's FV is $263, and Simply Wall St's FV is $264. The average of these fair value estimates is $230, indicating that IEX may be trading at a discount to fair value.

My own FV estimate of IEX is $204, so I believe the stock is trading at a premium of about 3.4%.

Here are the most recent Seeking Alpha articles covering IEX:

  1. Buy: Margin Headwinds Chipping Away At IDEX's Premium, by Stephen Simpson
  2. Hold: IDEX: Improving Macro And Capital Deployment, But Not Much Share Price Momentum, by Stephen Simpson
  3. Hold: IDEX - More Bolt-On M&A, Little Imminent Appeal, by The Value Investor

Conclusion

IEX is a quality DG stock rated Decent. For stocks rated Decent, I require a 10% discount to my fair value estimate. Therefore, my Buy Below price is $184

Please note that I'm not recommending IEX 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
25.88K 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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