Well, it was bound to happen. After the insanity of 39 dividend increases last week, it had to come to an end. Never fear; this week, there are six increases, one of which is Dividend King Cincinnati Financial. Their 8% increase extends their 64-year streak. Read on for the complete lists!
As an investor utilizing a dividend-growth strategy, I always look forward to receiving dividends, especially increases. I have observed that companies that regularly raise 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 make 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 1 Champion 0 Contender 3 Challenger 2
The Dividend Increasers List
Data was 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 Cincinnati Financial Corporation (CINF) 64 2.73 18-Mar-24 8.00% King Vistra Corp. (VST) 6 1.41 19-Mar-24 0.94% Challenger Best Buy Co., Inc. (BBY) 21 4.85 20-Mar-24 2.17% Contender DBA Sempra (SRE) 20 3.5 20-Mar-24 4.20% Contender Restaurant Brands International Inc. Common Shares (QSR) 12 2.8 20-Mar-24 5.45% Contender Turning Point Brands, Inc. (TPB) 7 1.01 21-Mar-24 7.69% 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 CINF 0.75 0.81 8.00% VST 0.213 0.215 0.94% BBY 0.92 0.94 2.17% SRE 0.595 0.62 4.20% QSR 0.55 0.58 5.45% TPB 0.065 0.07 7.69%
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 CINF 118.89 91.41 119.38 16.55 30% Off Low 0% Off High VST 61.12 22.22 62.12 10.34 175% Off Low 2% Off High BBY 77.53 61.53 86.11 15.61 26% Off Low 10% Off High SRE 70.84 63.23 77.79 10.03 12% Off Low 9% Off High QSR 82.77 58.15 83.29 32.14 42% Off Low 1% Off High TPB 27.86 19.62 27.95 100.95 42% Off Low 0% Off High
Tickers By Yield And Growth Rates
I've arranged the table in descending order, so 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 BBY 4.85 4.6 18.7 15.4 18.4 20.3 SRE 3.5 3.9 4.4 5.9 6.6 9.4 QSR 2.8 1.9 1.9 4.1 24.8 6.9 CINF 2.73 8.7 7.7 7.2 6.1 9.9 VST 1.41 13.3 15 TPB 1.01 8.3 9.1 9.5 10.5
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.
I'm comparing SCHD to the four companies with a 10-year dividend growth rate. One of the factors used in the methodology behind SCHD is the 10-year dividend growth rate. This rate is considered a proxy for success, although it's not a perfect predictor. The rate is easier to maintain over long periods, with the share price following. Below are the results.
As the benchmark, SCHD had a total return of 169%. The results were pretty close this week. A mere 8% total return separated QSR, CINF, and BBY (201%, 200%, and 193%). SRE was the lackluster performer, with a mere 74% total return.
Please do your due diligence before making any investment decision.
Dividend Derek
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.
