TRV - 9 Upcoming Dividend Increases

2023-06-01 11:37:34 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 6.7% and a median increase of 7.1%.
• There are nine increases for next week, down from eleven last week.

Many investors have found that companies that have a track record of increasing dividends tend to perform better than those that do not. When a company's management declares an increase in dividends, it usually indicates a strong business performance and a commitment to rewarding shareholders. As an observer of companies that have consistently grown their dividends, I provide you with the latest information on upcoming increases. Below are some useful lists that give insight into the stocks that are raising their dividends in the next week, which is particularly relevant in today's inflationary climate.

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

The following information is the result of combining the "U.S. Dividend Champions" spreadsheet available on this website with upcoming dividend data from NASDAQ. This process involves merging data on companies with a history of dividend growth with their forthcoming dividend payments. It is important to note that all of the companies included in this list have a minimum of five years of consistent dividend growth.

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 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.

Historical Returns

As an investor, I prioritize finding stocks with consistent dividend growth and a track record of outperforming the market. I use the Schwab U.S. Dividend Equity ETF ( SCHD ) as a benchmark to assess their performance. This ETF has a strong history of exceptional performance, a higher yield than the S&P 500, and a proven record of growing dividends. If you can't surpass the benchmark, it's wise to consider investing in it.

Here's the total return chart of SCHD versus everyone on the list. For reference, SCHD had a total return of 185%. NSP was the top performer with a monster 851% total return. AVY and IEX were also great, with a 354% and 312% return, respectively.

SCHD was fourth on the list, so everyone else not mentioned didn't perform as well as the index.

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

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