Dividend Changes: October 10-16, 2020

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Dividend Changes: October 10-16, 2020

This article was co-produced with James Marino Sr. of Portfolio Insight.

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We monitor dividend increases for stocks using Dividend Radar, a weekly automatically generated spreadsheet listing stocks with dividend streaks of five years or more. The Dividend Radar spreadsheet separates stocks into categories based on the length of the streak: Champions (25+ years), Contenders (10- 24 years), and Challengers (5-9 years).

This past week, six companies in Dividend Radar declared dividend increases, including one of the stocks I own. The following table presents a summary. The table below presents a summary of these dividend increases.

Please note that no dividend cuts or suspensions were announced for Dividend Radar stocks last week.

The table is sorted into sections for Champions, Contenders, and Challengers, and then by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the dividend’s compound annual growth rate over a 5-year period.

Some companies increase their dividends more than once a year, so the last column (1-yr DGR) indicates the percentage increase from the year-ago dividend.

Source: Created by the authors from data in Dividend Radar.

The following dividend increase data are sorted alphabetically by ticker.

Company descriptions are the author’s summary of company descriptions sourced from Finviz.

A. O. Smith Corporation (AOS)

AOS manufactures and markets water heaters, boilers, and other products for residential and commercial end markets in the United States, China, Canada, Europe, and India. The company provides electric, natural gas, gas tankless, and liquid propane water heaters, as well as solar tank units for use in residences and businesses. AOS is headquartered in Milwaukee, Wisconsin.

  • On Oct 12, AOS declared a quarterly dividend of 26¢ per share.
  • This is an increase of 8.33% from the prior dividend of 24¢.
  • Payable Nov 16, to shareholders of record on Oct 30; ex-div: Oct 29.

Cummins Inc. (CMI)

Founded in 1919 and headquartered in Columbus, Indiana, CMI is one of the leading designers and manufacturers of diesel engines. The company also produces natural gas engines and engine components and subsystems. CMI sells its products to original equipment manufacturers, distributors, and other customers worldwide.

  • On Oct 13, CMI declared a quarterly dividend of $1.35 per share.
  • This is an increase of 2.97% from the prior dividend of $1.3110.
  • Payable Dec 3, to shareholders of record on Nov 20; ex-div: Nov 19.

IDACORP, Inc. (IDA)

Founded in 1915 and headquartered in Boise, Idaho, IDA is a holding company engaged in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydroelectric generating plants in southern Idaho and eastern Oregon and 3 natural gas-fired plants in southern Idaho.

  • On Oct 15, IDA declared a quarterly dividend of 71¢ per share.
  • This is an increase of 5.97% from the prior dividend of 67¢.
  • Payable Nov 30, to shareholders of record on Nov 5; ex-div: Nov 4.

Gladstone Land Corporation (LAND)

Founded in 1997, LAND is a publicly-traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the United States, which it then leases to unrelated third-party farmers. The company owns farms planted and harvested annually and farms growing permanent crops.

  • On Oct 13, LAND declared a monthly dividend of 4.49¢ per share.
  • This is an increase of 0.22% from the prior dividend of 4.48¢.
  • Payable Oct 30, to shareholders of record on Oct 23; ex-div: Oct 22.

V.F. Corporation (VFC)

VFC is a global leader in designing, manufacturing, marketing, and distributing branded lifestyle apparel, footwear, and accessories. The company owns powerful brands, including The North Face, Vans, Timberland, Wrangler, Lee, and Nautica. VFC was founded in 1899 and is headquartered in Greensboro, North Carolina.

  • On Oct 16, VFC declared a quarterly dividend of 49¢ per share.
  • This is an increase of 2.08% from the prior dividend of 48¢.
  • Payable Dec 21, to shareholders of record on Dec 10; ex-div: Dec 9.

Williams-Sonoma, Inc. (WSM)

Founded in 1956 and headquartered in San Francisco, California, WSM operates as a multi-channel specialty retailer of home products. WSM markets its products through e-commerce websites, direct mail catalogs, and in more than 600 stores in the United States and internationally. Brand names include Williams-Sonoma, Pottery Barn, West Elm, and Rejuvenation.

  • On Oct 12, WSM declared a quarterly dividend of 53¢ per share.
  • This is an increase of 10.42% from the prior dividend of 48¢.
  • Payable Nov 27, to shareholders of record on Oct 23; ex-div: Oct 22.

Please note that we’re not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Below, we include charts from F.A.S.T. Graphs for three of this week’s dividend raisers, WSM, IDA, and CMI.

In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the timeframe in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).

Source: F.A.S.T. Graphs

WSM’s price line [black] is above the primary valuation line [orange] and above the stock’s normal P/E ratio [blue]. The stock is trading at a premium to fair value. An investment in WSM in February 2010 would have returned 18.5% on an annualized basis (with dividends included).

Source: F.A.S.T. Graphs

IDA’s price line is above the stock’s normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in IDA in January 2010 would have returned 11.7% on an annualized basis (with dividends included).

Source: F.A.S.T. Graphs

CMI’s price line is above the primary valuation line and above the stock’s normal P/E ratio. The stock is trading at a premium to fair value. An investment in CMI in January 2010 would have returned 17.2% on an annualized basis (with dividends included).

Dividend Cuts and Suspensions

Following requests from readers, we’ve added this section to our weekly article series. Please note that we’re only covering dividend cuts and suspensions announced by companies in Dividend Radar’s spreadsheet.

There were no dividend cuts or suspensions announced for Dividend Radar stocks last week.

Upcoming Ex-Dividend Dates

Here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is divided into sections by Ex-Div Date and sorted by Ticker for each date. Please note that Payout is the dollar amount payable per share or unit on the Pay Date.

Summary of Upcoming Ex-Dividend Dates: October 20-November 1, 2020

Company (Ticker)

Yrs

Price

(16.Oct)

Yield

5-Yr

DGR

Pay-

out

Pay

Date

Tuesday, 20 October (Ex-Div Date 10/20)

Lowe’s Companies, Inc. (LOW)

58

$176.15

1.36%

17.8%

0.6

11/04

Zoetis Inc. (ZTS)

8

$162.99

0.49%

18.9%

0.2

12/01

Thursday, 22 October (Ex-Div Date 10/22)

First Busey Corporation (BUSE)

7

$17.41

5.05%

7.7%

0.22

10/30

Colgate-Palmolive Company (CL)

57

$79.71

2.21%

3.3%

0.44

11/16

Kaiser Aluminum Corporation (KALU)

9

$63.11

4.25%

11.0%

0.67

11/13

Gladstone Land Corporation (LAND)

7

$14.29

3.77%

4.3%

0.0449

10/30

Lakeland Financial Corporation (LKFN)

7

$45.32

2.65%

14.6%

0.3

11/05

The Procter & Gamble Company (PG)

64

$143.83

2.20%

3.3%

0.7907

11/16

Thor Industries, Inc. (THO)

12

$96.56

1.70%

8.2%

0.41

11/06

Williams-Sonoma, Inc. (WSM)

14

$105.28

2.01%

7.2%

0.53

11/27

Friday, 23 October (Ex-Div Date 10/23)

Apogee Enterprises, Inc. (APOG)

9

$25.66

2.92%

11.4%

0.1875

11/10

Caterpillar Inc. (CAT)

27

$165.04

2.50%

7.5%

1.03

11/20

Monday, 26 October (Ex-Div Date 10/26)

Celanese Corporation (CE)

12

$119.50

2.08%

17.7%

0.62

11/10

Fastenal Company (FAST)

21

$44.62

2.24%

12.2%

0.25

11/24

Tuesday, 27 October (Ex-Div Date 10/27)

AptarGroup, Inc. (ATR)

27

$116.34

1.24%

5.2%

0.36

11/18

Citizens Financial Group, Inc. (CFG)

6

$27.90

5.59%

30.8%

0.39

11/12

Wednesday, 28 October (Ex-Div Date 10/28)

First Republic Bank (FRC)

7

$125.62

0.64%

6.1%

0.2

11/12

Main Street Capital Corporation (MAIN)

11

$29.84

8.24%

3.4%

0.205

11/13

Thursday, 29 October (Ex-Div Date 10/29)

The AES Corporation (AES)

8

$19.86

2.89%

10.1%

0.1433

11/16

A. O. Smith Corporation (AOS)

27

$55.83

1.86%

21.7%

0.26

11/16

Sierra Bancorp (BSRR)

8

$17.82

4.49%

14.6%

0.2

11/12

Costco Wholesale Corporation (COST)

16

$376.58

0.74%

12.3%

0.7

11/13

Enterprise Products Partners L.P. (EPD)

23

$17.49

10.18%

3.6%

0.445

11/12

Eaton Vance Corp. (EV)

39

$61.63

2.43%

8.5%

0.375

11/13

Alliant Energy Corporation (LNT)

17

$54.55

2.79%

6.7%

0.38

11/16

Morgan Stanley (MS)

7

$51.33

2.73%

22.9%

0.35

11/13

National Retail Properties, Inc. (NNN)

31

$34.72

5.99%

4.0%

0.52

11/16

Northwest Natural Holding Company (NWN)

64

$46.49

4.13%

0.5%

0.48

11/13

Paychex, Inc. (PAYX)

10

$83.28

2.98%

9.7%

0.62

11/24

STAG Industrial, Inc. (STAG)

9

$33.00

4.36%

1.3%

0.12

11/16

Unum Group (UNM)

12

$18.81

6.06%

10.9%

0.285

11/20

Friday, 30 October (Ex-Div Date 10/30)

Aon Plc (AON)

9

$212.78

0.86%

9.9%

0.46

11/13

Casey’s General Stores, Inc. (CASY)

21

$183.29

0.70%

9.3%

0.32

11/16

Hasbro, Inc. (HAS)

17

$86.81

3.13%

8.9%

0.68

11/16

Realty Income Corporation (O)

27

$60.41

4.65%

4.3%

0.234

11/13

PNM Resources, Inc. (PNM)

9

$45.95

2.68%

9.1%

0.3075

11/13

Sensient Technologies Corporation (SXT)

15

$63.38

2.46%

8.9%

0.39

12/01

Source: Created by the authors from data in Dividend Radar

With so many stocks going ex-dividend in the next two weeks, we can use added value metrics in Dividend Radar to highlight interesting candidates.

This week, we screened for stocks trading In the Margin of Safety or At Fair Value with positive 3-yr trailing total returns (3-yr TTR).

Source: Created by the authors from data in Dividend Radar

Next, we like to look for stocks whose 1-yr TTR is greater than their 3-yr TTR (colored green in the table). Two stocks pass the screen, and this week we’ll look at MS.

Dividend Challenger MS is a financial holding company that provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia.

MS yields 2.73% at $51.33 per share and is trading well within the margin of safety (by about 39%):

Source: Portfolio Insight

The stock has a quality score of 15 (Rating: Decent).

Recently, MS received bullish coverage on Seeking Alpha from several authors:

We think MS would be worth looking into!

Thanks for reading, and happy investing!

Disclosure: I am/we are long CMI. 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.

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