FSV - 18 Upcoming Dividend Increases To Finish Q1

2023-03-24 04:59:53 ET

Summary

• All these stocks have at least five fiscal years of dividend growth history and come from the U.S. Dividend Champions List.
• They have an average increase of 11.0% and a median increase of 8.4%.
• There are eighteen increases for next week to finish Q1, up from 4 last week.
• I've tracked 160 dividend increases in 2023 for your consideration. Hopefully, you've been able to profit from this research!

Companies with a track record of growing dividends tend to outperform the market. Management's announcement of dividend increases signifies strong business performance and a commitment to shareholder rewards. I monitor companies with a proven history of dividend growth to provide you with up-to-date information on pending increases. The lists below offer valuable insights on stocks that will raise their dividends in the coming week. This information is particularly relevant in today's inflationary environment.

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 marks the eligibility cut-off point for the upcoming dividend or distribution. To qualify, you must have purchased shares by the close of the preceding business day. For example, if the ex-dividend date falls on a Tuesday, you must have bought (or already owned) the shares by the market close on Monday. Note that if the ex-dividend date is on a Monday (or a Tuesday if Monday is a holiday), you must have acquired the shares 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.

The Dividend Increasers List

Data has been sorted by the ex-dividend day (ascending) and then by the streak (descending):

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 similarly to the first table (ex-dividend day ascending, dividend streak descending).

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.

Tickers By Yield And Growth Rates

I have arranged the table by descending order for investors who prioritize 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.

Historical Returns

I constantly seek dividend growth stocks with a proven track record of outperforming the market. I use the Schwab U.S. Dividend Equity ETF ( SCHD ) as my benchmark. It boasts a solid history of exceptional performance, a higher yield than the S&P 500, and a history of growing dividends. If you can't beat the index, you should take it.

I'm comparing its performance to the ten companies with the list's highest 10-year dividend growth rate. Note NTR should be on the list, but the YCharts data only goes back about five years, so I skipped it and included TRP instead.

MPWR was the monster performer over the past decade, returning over 2100% and absolutely crushing everyone here. I will note, a large amount of that performance came since the 2020 Covid crash, so more research is needed here if that's sustainable or not.

Besides that, most of the performers topped SCHD's 204% total return. STLD, HUM, DHR, APD, and ELS all healthily beat SCHD, with DOX and GL approximately matching. Only ESS and TRP truly lagged.

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

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