We're back this week after a hiatus last week. This week features nine new dividend increases that I'll cover. Most of the increases are inflation-beating, and a few come with juicy yields. Read on to see who they are.
As an investor utilizing a dividend-growth strategy, I always look forward to receiving dividends, especially increases. I have observed that companies that regularly increase their dividend payouts perform significantly better than those that do not. I constantly monitor these companies and am happy to share my insights on upcoming dividend increases. I have compiled a list of top stocks expected to raise dividends in the upcoming week. You can confidently use this analysis to construct your portfolio and for timely purchases.
How I Created The Lists
The information presented here is a result of merging two sources of data - the "U.S. Dividend Champions" spreadsheet from this website and upcoming dividend data from NASDAQ. The 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 in dividends for at least five years.
Companies must have higher total yearly dividends to be included in this list. Hence, 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 when you must purchase shares to be eligible for the upcoming dividend or distribution. To qualify, 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 is a Monday (or a Tuesday following a holiday on Monday), you must have bought 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 0 Champion 3 Contender 4 Challenger 2
The Dividend Increasers List
Data has been sorted by the ex-dividend day (ascending) and then by the streak (descending):
Name Ticker Streak Forward Yield Ex-Div Date Increase Percent Streak Category Apogee Enterprises, Inc. (APOG) 13 1.88 29-Jan-24 4.17% Contender Enterprise Products Partners L.P. (EPD) 27 7.59 30-Jan-24 3.00% Champion Alliant Energy Corporation (LNT) 21 3.99 30-Jan-24 5.96% Contender Franklin Electric Co., Inc. (FELE) 31 1.05 31-Jan-24 11.11% Champion Fastenal Company (FAST) 25 2.27 31-Jan-24 2.63% Champion The AES Corporation (AES) 12 4.18 31-Jan-24 4.22% Contender Graham Holdings Company (GHC) 7 0.94 31-Jan-24 4.24% Challenger PNM Resources, Inc. (Holding Co.) (PNM) 13 4.3 1-Feb-24 5.16% Contender Lamb Weston Holdings, Inc. Common Stock (LW) 8 1.36 1-Feb-24 28.57% Challenger
Field Definitions
Streak: Years of dividend growth history are sourced from the U.S. Dividend Champions spreadsheet.
Forward Yield: The new payout rate is divided 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's a table mapping the new rates versus the old rates. It also reiterates the percentage increase. This table is sorted similarly to the first (ex-dividend day ascending, dividend streak descending).
Ticker Old Rate New Rate Increase Percent APOG 0.24 0.25 4.17% EPD 0.5 0.515 3.00% LNT 0.453 0.48 5.96% FELE 0.225 0.25 11.11% FAST 0.38 0.39 2.63% AES 0.166 0.173 4.22% GHC 1.65 1.72 4.24% PNM 0.368 0.387 5.16% LW 0.28 0.36 28.57%
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 APOG 53.32 36.02 55.41 15.78 48% Off Low 4% Off High EPD 27.13 23.32 27.43 10.06 16% Off Low 1% Off High LNT 48.12 44.32 54.31 19.91 9% Off Low 11% Off High FELE 95.32 82.18 106.31 35.17 16% Off Low 10% Off High FAST 68.83 46.14 70.1 33.28 49% Off Low 2% Off High AES 16.49 11.3 26.83 0 46% Off Low 39% Off High GHC 730.92 540.39 736.2 11.53 35% Off Low 1% Off High PNM 36.03 35.17 48.29 20.05 2% Off Low 25% Off High LW 105.84 81 116.7 33.2 31% Off Low 9% Off High
Tickers By Yield And Growth Rates
I've arranged the table in descending order for investors to 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 EPD 7.59 5.3 3.6 2.9 3.9 10.5 PNM 4.3 5.8 6.1 6.8 8.7 11.1 AES 4.18 5 5 5 15.3 9.1 LNT 3.99 5.9 6 6.2 6.8 10.1 FAST 2.27 12.9 11.9 12.7 13.4 14.9 APOG 1.88 9.1 8.6 8.8 10.3 10.7 LW 1.36 14.3 6.8 7.9 9.2 FELE 1.05 15.4 13.2 14 11.4 15 GHC 0.94 4.4 4.4 4.4 5.4
Historical Returns
My investment strategy involves finding stocks combining increasing dividends and consistently outperforming the market. I use the Schwab U.S. Dividend Equity ETF (SCHD) as my dividend growth benchmark. This ETF has a remarkable track record of exceptional performance, a higher yield than the S&P 500, and a proven record of growing dividends. I prefer to invest in the ETF if a stock cannot beat the benchmark. I've added companies to my personal investment portfolio based on this analysis. I also routinely use this analysis to choose timely additional purchases.
With indices at all-time highs, finding value in this market could be challenging. Fortunately, the breadth is still thin, and several companies are considerably off their highs. EPD also offers a juicy 7.6% yield, while AES and LNT are around 4%.
I'm comparing SCHD to everyone on the list. I've chosen the 10-year dividend growth rate as the comparator, as that is one of the key metrics to be included in SCHD. It's also a proxy for success, as it is easier to continually grow a dividend over long periods with the share price following. Here are the results.
The first chart here is the 10-year results of everyone except for LW. LW doesn't have the 10-year stock history, but I wanted to provide the complete decade analysis versus SCHD.
On this view, FAST was the top dog with a 300% return, followed not-so-closely by SCHD at 196%. Interestingly, everyone else lagged SCHD by a considerable margin over the past decade.
Now, let's include LW, though it shortens the time frame.
With this modified view, which goes back to 2016, FAST was still the top performer, as expected, with a 335% total return. LW was thoroughly in second place at 241%. You can see why I wanted to make sure to include them. Though their time frame has been shorter, they've been a solid performer, and with the light blue line, you can see that even going into the COVID-19 crash, they were the top performers overall.
FELE finished in third with a 187% total return, with the SCHD index coming in fourth at 134%. Everyone else finished below.
Please do your due diligence before making any investment decision.
This article was written by
Dividend Derek
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Derek is an individual investor seeking to navigate the investment world to provide a wealthy and stable retirement for his family. He aims to help fellow investors, notably younger investors, establish a plan to produce a growing income stream. Derek holds a Bachelor's degree in Computer Science with a minor in Economics from the University of Delaware and lives with his wife and two children.Derek created and operatescustomstockalerts.com. It's a suite of utilities for investors to stay on top of all their stocks. Pick a company you're interested in, pick an alert type (price, dividend yield, PE, etc.) and a value. You'll get a text or email (your choice) when your value hits. Also, get alerts for upcoming dividends, including increases (works for stocks and ETFs). Use it as a chance to buy and collect the dividend!Come check me out at customstockalerts.com!
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD 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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
As an experienced investor specializing in dividend growth strategies, I thoroughly understand the nuances of dividend investing and have actively monitored various companies' dividend histories and upcoming dividend increases. My insights are based on a combination of firsthand analysis and data sourced from reputable financial platforms like Seeking Alpha and NASDAQ.
In the provided article, the author discusses nine new dividend increases from different companies and categorizes them based on their dividend streaks, forward yields, ex-dividend dates, and increase percentages. The article also introduces concepts such as the ex-dividend date, dividend streak categories (King, Champion, Contender, Challenger), and additional metrics like yearly pricing action and P/E ratio.
Furthermore, the author presents a table comparing old and new dividend rates, along with percentage increases, and provides additional metrics like current price, 52-week low/high, and P/E ratio for the listed companies. The article prioritizes stocks based on their yield and historical dividend growth rates, incorporating the "Chowder Rule" as a metric for investor consideration.
The author also evaluates historical returns of selected stocks against the Schwab U.S. Dividend Equity ETF (SCHD) as a benchmark, using the 10-year dividend growth rate as a key metric for comparison. The analysis includes charts illustrating the performance of selected stocks over different time frames relative to the SCHD index.
Overall, the article offers a comprehensive overview of dividend investing strategies, including analysis of specific stocks, comparison with benchmark ETFs, and insights into the author's personal investment approach and disclosure.
