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Don't adjust your set; this week's headline looks much like last week's. The exception is that we have just one dividend king this week: MSA Safety Incorporated (MSA). MSA extends its 53-year growth streak with an 8.5% increase. A dividend king status is something to be celebrated, a testament to a quality business's ability to reward shareholders for over 50 years.
The other companies on the list have streaks ranging from 6 to 31 years. Together, they feature an average increase of 7.6% and a median of 8.1%.
I adhere to a dividend-growth strategy that enables me to receive increasing dividend payouts from companies that regularly increase their dividends. Through my diligent monitoring of such companies, I have identified a list of top-performing stocks poised to increase their dividends shortly. This list can be leveraged to make prudent investments and establish a well-positioned portfolio for long-term success.
How I Created The Lists
The following information is a result of merging two sources of data: the "U.S. Dividend Champions" spreadsheet from a particular website and upcoming dividend data from NASDAQ. This process combines data on companies with a consistent dividend growth history with future dividend payments. It's important to understand that all companies included in this list have consistently grown their dividends for at least five years.
Companies must have higher total yearly dividends to be included in this list. Therefore, a company may not increase its dividend every calendar year, but the total annual dividend can still grow.
What Is The Ex-Dividend Date?
The ex-dividend date is the last day you can purchase shares to qualify for an upcoming dividend or distribution. To be eligible, you must have bought the shares by the end of the preceding business day. For instance, if the ex-dividend date is Tuesday, you must have acquired the shares by the market close on Monday. If the ex-dividend date falls on a Monday (or a Tuesday following a holiday on Monday), you must have purchased the shares by the previous Friday.
Dividend Streak Categories
Here are the definitions of the streak categories, as I'll use them throughout the piece.
- King: 50+ years.
- Champion/Aristocrat: 25+ years.
- Contender: 10-24 years.
- Challenger: 5+ years.
| Category | Count |
| King | 1 |
| Champion | 1 |
| Contender | 8 |
| Challenger | 1 |
The Dividend Increases List
Data was sorted by the ex-dividend date (ascending) and then by the streak (descending):
| Name | Ticker | Streak | Forward Yield | Ex-Div Date | Increase Percent | Streak Category |
| American Water Works Company, Inc. | (AWK) | 16 | 2.3 | 13-May-24 | 8.05% | Contender |
| Timken Company (The) | (TKR) | 11 | 1.51 | 13-May-24 | 3.03% | Contender |
| MSA Safety Incorporated | (MSA) | 53 | 1.09 | 14-May-24 | 8.51% | King |
| PACCAR Inc. | (PCAR) | 14 | 1.12 | 14-May-24 | 11.11% | Contender |
| ConnectOne Bancorp, Inc. | (CNOB) | 6 | 3.62 | 14-May-24 | 5.88% | Challenger |
| Bar Harbor Bankshares, Inc. | (BHB) | 21 | 4.59 | 15-May-24 | 7.14% | Contender |
| Pool Corporation | (POOL) | 14 | 1.31 | 15-May-24 | 9.09% | Contender |
| RTX Corporation | (RTX) | 31 | 2.42 | 16-May-24 | 6.78% | Champion |
| Southern Company (The) | (SO) | 23 | 3.71 | 17-May-24 | 2.86% | Contender |
| Phillips 66 | (PSX) | 12 | 3.13 | 17-May-24 | 9.52% | Contender |
| Tetra Tech, Inc. | (TTEK) | 10 | 0.55 | 17-May-24 | 11.54% | Contender |
Field Definitions
Streak: Years of dividend growth history are sourced from the U.S. Dividend Champions spreadsheet.
Forward Yield: The payout rate is calculated by dividing the new payout rate by the current share price.
Ex-Dividend Date: This is the date you need to own the stock.
Increase Percent: The percent increase.
Streak Category: This is the company's overall dividend history classification.
Show Me The Money
Here is a table that shows the new and old rates and the percentage increase. The table is sorted by ex-dividend day in ascending order and dividend streak in descending order.
| Ticker | Old Rate | New Rate | Increase Percent |
| AWK | 0.708 | 0.765 | 8.05% |
| TKR | 0.33 | 0.34 | 3.03% |
| MSA | 0.47 | 0.51 | 8.51% |
| PCAR | 0.27 | 0.3 | 11.11% |
| CNOB | 0.17 | 0.18 | 5.88% |
| BHB | 0.28 | 0.3 | 7.14% |
| POOL | 1.1 | 1.2 | 9.09% |
| RTX | 0.59 | 0.63 | 6.78% |
| SO | 0.7 | 0.72 | 2.86% |
| PSX | 1.05 | 1.15 | 9.52% |
| TTEK | 0.26 | 0.29 | 11.54% |
Additional Metrics
Some different metrics related to these companies include yearly pricing action and the P/E ratio. The table is sorted the same way as the table above.
| Ticker | Current Price | 52 Week Low | 52 Week High | PE Ratio | % Off Low | % Off High |
| AWK | 132.9 | 112.94 | 148.76 | 41.19 | 18% Off Low | 11% Off High |
| TKR | 89.84 | 65.14 | 94.71 | 16.01 | 38% Off Low | 5% Off High |
| MSA | 187.58 | 135.22 | 196.02 | 42.72 | 39% Off Low | 4% Off High |
| PCAR | 107.09 | 63.08 | 125.5 | 21.06 | 70% Off Low | 15% Off High |
| CNOB | 19.9 | 12.47 | 24.02 | 11.32 | 60% Off Low | 17% Off High |
| BHB | 26.16 | 20.24 | 29.69 | 13.08 | 29% Off Low | 12% Off High |
| POOL | 366 | 303.19 | 420.98 | 41.67 | 21% Off Low | 13% Off High |
| RTX | 104.01 | 67.61 | 104.09 | 0 | 54% Off Low | 0% Off High |
| SO | 77.64 | 60.31 | 77.77 | 20.77 | 29% Off Low | 0% Off High |
| PSX | 146.95 | 87.47 | 174.08 | 0 | 68% Off Low | 16% Off High |
| TTEK | 211.83 | 131.04 | 216.24 | 37.84 | 62% Off Low | 2% Off High |
Tickers By Yield And Growth Rates
I've arranged the table in descending order so that investors can prioritize the current yield. As a bonus, the table also features some historical dividend growth rates. Moreover, I have incorporated the "Chowder Rule," which is the sum of the current yield and the five-year dividend growth rate.
| Ticker | Yield | 1 Yr DG | 3 Yr DG | 5 Yr DG | 10 Yr DG | Chowder Rule |
| BHB | 4.59 | 7.7 | 8.4 | 7 | 7.1 | 11.7 |
| SO | 3.71 | 3 | 3 | 3.1 | 3.3 | 6.8 |
| CNOB | 3.62 | 9.7 | 23.6 | 17.8 | 9.3 | 21.5 |
| PSX | 3.13 | 6.1 | 5.3 | 5.6 | 11.6 | 8.8 |
| RTX | 2.42 | 7.3 | 7.5 | 5.5 | 5.3 | 7.9 |
| AWK | 2.3 | 8 | 8.8 | 9.2 | 9.7 | 11.5 |
| TKR | 1.51 | 6.5 | 5 | 3.4 | 3.5 | 4.9 |
| POOL | 1.31 | 10 | 23.8 | 19.6 | 19.2 | 20.9 |
| PCAR | 1.12 | 11.6 | 7.5 | 6.5 | 7.1 | 7.6 |
| MSA | 1.09 | 2.2 | 3 | 4.4 | 4.6 | 5.5 |
| TTEK | 0.55 | 13.1 | 15.2 | 16.7 | 17.2 |
Historical Returns
My investment strategy centers on identifying stocks with a consistent track record of outperforming the market while increasing their dividend payouts. I have employed the Schwab U.S. Dividend Equity ETF (SCHD) as a benchmark to compare the performance of individual stocks. SCHD has a long history of exceptional performance, a higher yield than the S&P 500, and a proven record of growing dividends. I prefer investing in the ETF if a stock cannot outperform the benchmark. Based on this analysis, I have included several companies in my personal investment portfolio. Furthermore, I rely on this analysis to make timely additional purchases for my portfolio.
The ten-year dividend growth rate is one of the four main factors in the index behind SCHD. It's also a proxy for success, although it's not a perfect predictor. Share prices tend to follow strong dividend growth over long periods. Here's a comparison of SCHD versus the ten with 10-year dividend growth rates.
Let's jump into the results. SCHD returned about 188% over the past decade (dividends are reinvested in all these results).
The top performers were POOL (616%), MSA (335%), PCAR (271%), and AWK (243%). I also own POOL, though I can't take credit for having owned it for a full decade.
Southern Company was right after SCHD with a 171% total return, which is very respectable for utility. Performance drops slightly after that, with PSX and TKR slightly underperforming SCHD over the full decade.
BHB, RTX, and finally, CNOB brought up the bottom of the pack.
Please do your due diligence before making any investment decision.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
