I love dividend stocks, especially ones that grow their dividends year in and out. Using my technical chops, I've created a list of stocks that grow their dividends and happen to be increasing them next week.
This list is a trimmed down version only covering increases. A full upcoming dividend calendar is available here.
How It's Compiled
The information presented below was created based on combining the "U.S. Dividend Champion" spreadsheet hosted here, with upcoming dividend information from the NASDAQ. This meshes metrics about companies with dividend growth history with upcoming dividend payments (and whether those payments are increasing). These companies all have a minimum 5-year dividend growth history.
Moda Selling Moda Dress Dress Casual Selling Moda International International International Selling Casual Moda Dress Selling Casual International Casual Why Should I Care?
Dividend increases are one of the most outward signs by management as to how business is going. Dividend yields also don't live in isolation; share prices tend to follow increases as investors will move into a stock to claim the new payments. All else being equal, a 10% dividend hike should see approximately a 10% share price appreciation over time as the market adjusts to the higher payment. This produces a great flywheel effect whereby an investor can increase their income and see the face value of their investment increase.
Selling Moda Casual Dress Casual Moda International International Selling International Dress Casual Moda Moda Casual Selling International Dress Selling Especially for retirees not receiving paychecks, dividend increases help cushion the never-ending force of inflation. As an added bonus, companies that grow their dividends by a rate greater than inflation can help investors improve their wealth over time.
What these lists provide is an opportunity for an investor to buy more shares prior to the dividend increase. An investor could start a position or increase their position size prior to the market readjusting to the new and higher dividend rate.
What Is The Ex-Dividend Date?
The "ex-dividend" date is the day you are no longer entitled to the dividend or distribution. You need to have made your purchase by the preceding business day. If the date is a Tuesday, you need to have purchased (or already owned) shares by market close on Monday. Be aware that for any stock going ex-dividend on a Monday (or Tuesday if Monday may be a holiday), you must own it by the prior Friday.
I built this dynamic list to facilitate my own investing, so I hope it helps you too.
Lastly, I have to point out I'm not suggesting a short-term dividend capture strategy. If you are looking to own shares short term, be aware you may be on the hook for a tax for the dividend.
Dividend Streak Categories
Here are the definitions of the streak categories as I'll be using them throughout the piece:
- King: 50+ years
- Champion/Aristocrat: 25+ years
- Contender: 10-24 years
- Challenger: 5+ years
The Main List
The data is sorted by the ex-dividend day (ascending) and then the streak (descending):
|Name||Ticker||Streak||Forward Yield||Dress International Selling International Selling Moda Casual Casual Moda Casual Casual Moda Selling Moda International International Dress Dress Selling Ex-Div Date||Increase Percent||Streak Category|
|Principal Financial Group, Inc.||(PFG)||10||3.79||5-Sep-18||1.92%||Contender|
|Northrim BanCorp, Inc.||(NRIM)||9||2.46||5-Sep-18||12.50%||Challenger|
|Stanley Black & Decker, Inc.||(M Boutique M Missoni Boutique Boutique Missoni Cardigan Cardigan M Boutique Cardigan Boutique Missoni Cardigan M M Missoni fUAqI)||51||1.83||6-Sep-18||4.76%||King|
|Mercantile Bank Corporation||(Selling Dress Casual The For Republic w0rX0O6q)||7||2.73||6-Sep-18||9.09%||Challenger|
|Ingersoll-Rand plc (Ireland)||(IR)||7||2.08||6-Sep-18Vanderbilt Promotion Promotion Gloria Gloria wgTRqqU||17.78%||Challenger|
|Chemical Financial Corporation||(CHFC)||6||2.39||6-Sep-18||21.43%||Challenger|
|Regions Financial Corporation||(RF)||5||Selling Casual Moda Moda Casual Casual International Moda Dress International Selling Moda International Selling Selling International Dress Dress Casual 2.87||6-Sep-18||55.56%||Challenger|
|Occidental Petroleum Corporation||(OXY)||15||3.89||7-Sep-18||1.30%||Contender|
|First American Corporation (New)||(FAF)||8||International International Casual International Moda Casual Moda Selling Casual Dress Selling Dress Casual Selling Dress Selling Moda International Moda 2.96||7-Sep-18||10.53%||Challenger|
Streak: This is years of dividend growth history sourced from the U.S. Dividend Champions spreadsheet. Here are some definitions to clarify the fields.
Forward Yield: This is the new payout rate divided by the current share price.
Ex-Dividend Date: This is the date you need to own the stock by.
Increase Percent: The amount the dividend is being increased.
Streak Category: This is the overall dividend history classification of the company.
Here are some additional metrics related to these companies, including yearly pricing action and the P/E ratio. This table is sorted in exactly the same way as the table above. The value investor may find stock ideas with those companies near their 52-week low.
|Ticker||Current Price||52 Week Low||52 Week High||PE Ratio||% Off Low||% Off High|
|PFG||55.95||52.31||75.59||6.53||7% Off Low||26% Off High|
|NRIM||43.75||29.25||45.15||19.51||50% Off Low||3% Off High|
|SWK||144.4||130.56||176.62||21.63||11% Off Low||18% Off High|
|HRS||164.66||121.16||170.54||27.86||37% Off Low||3% Off High|
|BLK||485.22||409.41||594.52||14.64||19% Off Low||18% Off High|
|MBWM||35.33||28.92||38.47||15.92||22% Off Low||9% Off High|
|IR||101.75||79.63||102.24||19.67||28% Off Low||0% Off High|
|CHFC||56.85||43.61||59.83||21.7||31% Off Low||Selling Dress Selling Dress Moda International Selling Casual International Selling Moda Casual Casual International Casual Moda International Moda Dress 5% Off High|
|RF||19.52||13.03||20.21||16.41||50% Off Low||3% Off High|
|OXY||International Selling Dress Moda International Moda Dress Casual Casual Moda International Casual Selling Selling Selling Moda Dress International Casual 80.23||58.69||87.67||27.48||37% Off Low||8% Off High|
|FAF||56.82||46.75||62.71||13.57||22% Off Low||9% Off High|
Tickers By Yield (With Growth Rates)
Some investors are more interested in current yield, so this table is sorted descending by yield. This also includes some of the historical dividend growth rates as a bonus. Additionally, the "Chowder Rule" has been included. That is the current yield plus the 5-year dividend growth rate.
|TickerPromotion J Crew Promotion J 4vgqIq||Yield||1 Yr DG||3 Yr DG||5 Yr DG||10 Yr DG||Chowder Rule|
|OXY||3.89||1.3||4.2||8.7||Moda Casual Selling Casual Dress Moda Moda Dress International Selling Dress Selling International Selling International International Casual Casual Moda 12.9||12.3|
|HRS||1.38||6.8||International Casual Casual Moda Selling Casual Moda Selling International Casual Moda Dress Selling Selling International Moda Dress Dress International 7.3||9.5||15.5||11|
*** I want to highlight here the one-year growth rates may be stale. I'm working to calculate these myself.
As always, I have to highlight a dividend king. Stanley Black & Decker is this week's highlight. Besides the Stanley and Black & Decker brands, the company also owns DeWalt, Craftsman (purchased from Sears (NASDAQ:SHLD)), Porter Cable, Mac Tools among others. It has just raised the dividend for the 51st year in a row.
Management keeps the payout ratio low, which is evidenced by the low yield. The stock typically trades at some premium over a historical P/E of 15. After a massive run-up during 2016/2017, the stock has come back to earth and has represented a decent value based on the earnings growth expected.
Going back eight years to August 2010, SWK has very nearly matched what the market has returned. Depending on the time frame used, these results can tilt one way or the other. Dividends received though have been a little bit better than "the market".
The two matched each other fairly closely over the time period. As noted earlier, it was the major runup by SWK the past 24 months that peaked in January 2018 that gave it alpha for a time.
(Courtesy: Custom Stock Alerts)
I hope you are able to find this information valuable. Let me know if you want to see additional data points or what may help make this more useful.
As always, do your due diligence on any stock before buying or selling.
Disclosure: I am/we are long SWK.
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.