Business

8 Upcoming Dividend Increases Including A Dividend King


Money under holed paper

TanyaJoy

Dividend increases are a vital sign from management that business is going well, and the company can and wants to reward shareholders. I track upcoming dividend increases from companies with a history of increasing them. The lists below contain different data points for the stocks increasing their dividends next week. This is especially important during these inflationary times.

This list is a trimmed-down version, only covering dividend increases. A full upcoming dividend calendar is always available here.

How I Created The Lists

I created the information below by combining the “U.S. Dividend Champions” spreadsheet hosted here with upcoming dividend information from NASDAQ. This meshes metrics about companies with dividend growth history with upcoming dividend payments. These companies all have a minimum five-year dividend growth history.

Companies are required to have higher total dividends paid out each year. Therefore, a company may not raise its dividend each calendar year, but the total annual dividend can still increase.

What Is The Ex-Dividend Date?

The “ex-dividend” date is when you are no longer entitled to the dividend or distribution. You need to have made your purchase by the preceding business day. For example, if the date is a Tuesday, you need to have purchased (or already owned) shares by the market close on Monday. Be aware that for any stock going ex-dividend on a Monday (or Tuesday, if Monday is a holiday), you must own it by the prior 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 5
Challenger 1

The Main 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
Illinois Tool Works Inc. (ITW) 58 2.72 29-Sep-22 7.38% King
BancFirst Corporation (BANF) 28 1.62 29-Sep-22 11.11% Champion
W. P. Carey Inc. REIT (WPC) 24 5.26 29-Sep-22 0.19% Contender
Terreno Realty Corporation (TRNO) 11 2.6 29-Sep-22 17.65% Contender
Fifth Third Bancorp (FITB) 10 3.85 29-Sep-22 10.00% Contender
Mondelez International, Inc. – Class A Common Stock (MDLZ) 8 2.58 29-Sep-22 10.00% Challenger
Republic Services, Inc. (RSG) 18 1.38 30-Sep-22 7.61% Contender
State Street Corporation (STT) 11 3.72 30-Sep-22 10.53% Contender

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 overall dividend history classification of the company.

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 the same way as the first table (ex-dividend day ascending, dividend streak descending).

Ticker Old Rate New Rate Increase Percent
ITW 1.22 1.31 7.38%
BANF 0.36 0.4 11.11%
WPC 1.057 1.059 0.19%
TRNO 0.34 0.4 17.65%
FITB 0.3 0.33 10.00%
MDLZ 0.35 0.385 10.00%
RSG 0.46 0.495 7.61%
STT 0.57 0.63 10.53%

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. A value investor may find stock ideas with those companies near their 52-week lows, as they could provide more margin of safety and inflated yield.

Ticker Current Price 52-Week Low 52-Week High PE Ratio % Off Low % Off High
ITW 192.75 173.52 246.76 30.76 11% Off Low 22% Off High
BANF 98.87 53.82 118.07 18.69 84% Off Low 16% Off High
WPC 80.66 70.05 89.63 26.9 15% Off Low 10% Off High
TRNO 57.25 54.23 85.08 48.69 6% Off Low 33% Off High
FITB 34.25 31.8 49.88 13.67 8% Off Low 31% Off High
MDLZ 59.75 56.68 68.69 26.86 5% Off Low 13% Off High
RSG 143.25 112.79 149.17 29.73 27% Off Low 4% Off High
STT 67.78 58.8 103.29 12.12 15% Off Low 34% Off High

Tickers By Yield And Growth Rates

Some investors are more interested in the current yield, so I sorted this table descending by yield. The table also includes some historical dividend growth rates as a bonus. Additionally, the “Chowder Rule” has been included, the current yield + five-year dividend growth rate.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
WPC 5.26 0.8 1.1 1.6 7.3 6.8
FITB 3.85 5.9 17.9 15.8 22.7 19.6
STT 3.72 25 15.7 13.8 21.2 17.5
ITW 2.72 6.6 13.5 15.7 12.9 18.4
MDLZ 2.58 10.5 12.7 13.1 0.8 15.7
BANF 1.62 6.3 17.4 13.6 10.5 15.2
RSG 1.38 4.9 7.2 7.2 7.8 8.6
TRNO 2.6 -12.1 10.5 11.3 27.8 14.1

Here are some notes about this week’s list:

  • Dividend King Illinois Tool Works extends its 58-year streak with a 7.4% hike.
  • BANF, TRNO, FITB, MDLZ, and STT offer healthy double-digit dividend increases.
  • With continued market turmoil, there could be some compelling buys at these prices.

Please do your due diligence before investing, and thanks for reading.



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