9 Upcoming Dividend Increases (2024)

9 Upcoming Dividend Increases (1)

We're back this week after a hiatus last week. This week features nine new dividend increases that I'll cover. Most of the increases are inflation-beating, and a few come with juicy yields. Read on to see who they are.

As an investor utilizing a dividend-growth strategy, I always look forward to receiving dividends, especially increases. I have observed that companies that regularly increase 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 for 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 0
Champion 3
Contender 4
Challenger 2

The Dividend Increasers 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
Apogee Enterprises, Inc. (APOG) 13 1.88 29-Jan-24 4.17% Contender
Enterprise Products Partners L.P. (EPD) 27 7.59 30-Jan-24 3.00% Champion
Alliant Energy Corporation (LNT) 21 3.99 30-Jan-24 5.96% Contender
Franklin Electric Co., Inc. (FELE) 31 1.05 31-Jan-24 11.11% Champion
Fastenal Company (FAST) 25 2.27 31-Jan-24 2.63% Champion
The AES Corporation (AES) 12 4.18 31-Jan-24 4.22% Contender
Graham Holdings Company (GHC) 7 0.94 31-Jan-24 4.24% Challenger
PNM Resources, Inc. (Holding Co.) (PNM) 13 4.3 1-Feb-24 5.16% Contender
Lamb Weston Holdings, Inc. Common Stock (LW) 8 1.36 1-Feb-24 28.57% 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
APOG 0.24 0.25 4.17%
EPD 0.5 0.515 3.00%
LNT 0.453 0.48 5.96%
FELE 0.225 0.25 11.11%
FAST 0.38 0.39 2.63%
AES 0.166 0.173 4.22%
GHC 1.65 1.72 4.24%
PNM 0.368 0.387 5.16%
LW 0.28 0.36 28.57%

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
APOG 53.32 36.02 55.41 15.78 48% Off Low 4% Off High
EPD 27.13 23.32 27.43 10.06 16% Off Low 1% Off High
LNT 48.12 44.32 54.31 19.91 9% Off Low 11% Off High
FELE 95.32 82.18 106.31 35.17 16% Off Low 10% Off High
FAST 68.83 46.14 70.1 33.28 49% Off Low 2% Off High
AES 16.49 11.3 26.83 0 46% Off Low 39% Off High
GHC 730.92 540.39 736.2 11.53 35% Off Low 1% Off High
PNM 36.03 35.17 48.29 20.05 2% Off Low 25% Off High
LW 105.84 81 116.7 33.2 31% Off Low 9% Off High

Tickers By Yield And Growth Rates

I've 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.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
EPD 7.59 5.3 3.6 2.9 3.9 10.5
PNM 4.3 5.8 6.1 6.8 8.7 11.1
AES 4.18 5 5 5 15.3 9.1
LNT 3.99 5.9 6 6.2 6.8 10.1
FAST 2.27 12.9 11.9 12.7 13.4 14.9
APOG 1.88 9.1 8.6 8.8 10.3 10.7
LW 1.36 14.3 6.8 7.9 9.2
FELE 1.05 15.4 13.2 14 11.4 15
GHC 0.94 4.4 4.4 4.4 5.4

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.

With indices at all-time highs, finding value in this market could be challenging. Fortunately, the breadth is still thin, and several companies are considerably off their highs. EPD also offers a juicy 7.6% yield, while AES and LNT are around 4%.

I'm comparing SCHD to everyone on the list. I've chosen the 10-year dividend growth rate as the comparator, as that is one of the key metrics to be included in SCHD. It's also a proxy for success, as it is easier to continually grow a dividend over long periods with the share price following. Here are the results.

The first chart here is the 10-year results of everyone except for LW. LW doesn't have the 10-year stock history, but I wanted to provide the complete decade analysis versus SCHD.

9 Upcoming Dividend Increases (2)

On this view, FAST was the top dog with a 300% return, followed not-so-closely by SCHD at 196%. Interestingly, everyone else lagged SCHD by a considerable margin over the past decade.

Now, let's include LW, though it shortens the time frame.

9 Upcoming Dividend Increases (3)

With this modified view, which goes back to 2016, FAST was still the top performer, as expected, with a 335% total return. LW was thoroughly in second place at 241%. You can see why I wanted to make sure to include them. Though their time frame has been shorter, they've been a solid performer, and with the light blue line, you can see that even going into the COVID-19 crash, they were the top performers overall.

FELE finished in third with a 187% total return, with the SCHD index coming in fourth at 134%. Everyone else finished below.

Please do your due diligence before making any investment decision.

This article was written by

Dividend Derek

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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.

As an avid investor and enthusiast with a deep understanding of dividend growth strategies, I've been actively involved in monitoring and analyzing companies that consistently increase their dividend payouts. My expertise is grounded in a meticulous approach, utilizing a combination of data from reputable sources such as the "U.S. Dividend Champions" spreadsheet and upcoming dividend data from NASDAQ. Through this process, I've compiled a list of top stocks expected to raise dividends in the upcoming week, incorporating years of dividend growth history and higher total yearly dividends as crucial criteria.

Let's delve into the key concepts and information presented in the article:

  1. Dividend Streak Categories:

    • King: 50+ years

    • Champion/Aristocrat: 25+ years

    • Contender: 10-24 years

    • Challenger: 5+ years

    • Category Count:

      • King: 0
      • Champion: 3
      • Contender: 4
      • Challenger: 2
  2. The Dividend Increasers List:

    • Data sorted by ex-dividend day (ascending) and then by the streak (descending).
    • Columns include Name, Ticker, Streak, Forward Yield, Ex-Div Date, Increase Percent, and Streak Category.
    • Example entries: Apogee Enterprises, Inc. (APOG), Enterprise Products Partners L.P. (EPD), Alliant Energy Corporation (LNT), etc.
  3. Field Definitions:

    • Streak: Years of dividend growth history.
    • Forward Yield: Payout rate divided by the current share price.
    • Ex-Dividend Date: Date required to own the stock for eligibility.
    • Increase Percent: The percentage increase.
    • Streak Category: Overall dividend history classification.
  4. Show Me The Money:

    • Table comparing old and new dividend rates, along with the percentage increase.
  5. Additional Metrics:

    • Current Price, 52 Week Low/High, PE Ratio, % Off Low, % Off High for each company.
  6. Tickers By Yield And Growth Rates:

    • Table arranged in descending order for investors to prioritize current yield.
    • Historical dividend growth rates and the "Chowder Rule" included.
  7. Historical Returns:

    • Comparison of selected companies against the Schwab U.S. Dividend Equity ETF (SCHD).
    • Evaluation based on the 10-year dividend growth rate as a key metric.
  8. Analyst’s Disclosure:

    • The author, Dividend Derek, discloses a beneficial long position in SCHD.
    • The article emphasizes the importance of due diligence before making any investment decisions.

In conclusion, this comprehensive article by Dividend Derek provides valuable insights and data-driven analysis for investors interested in dividend growth strategies. The inclusion of historical returns and comparisons against a benchmark ETF adds depth to the assessment, guiding investors in their decision-making process.

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