Earnings season is finally behind us for Q1 2014. It was a wild ride and many companies announced new dividend hikes. See a few here and here. I always like reviewing which companies boosted payouts because you get a picture of how aggressive the company believes it can be with increasing its distributions.
Another fun thing to do is identify which companies will be raising dividends next. Dividend increases are often a major headline and can push a stock higher. Especially when a company announces that it is increasing its dividend by more than the investor community expected.
I’ve been digging into our list of dividend growth stocks to see which companies are due for a dividend hike. When a company increases its dividend each year it can be easy to determine when the next boost will be announced. When you cross reference that with a review of EPS and net income growth you can sometimes get a sneak peak at what a company may choose to do.
I’ve reviewed the dividend history of each company listed below and calculated the dividend increase trend which is listed below. Essentially it just means that if a company has increased its dividend by 8% for each of the last 3 years it is likely to do the same this year. Better than expected results or forecasts could result in a higher dividend increase.
Here’s my list of companies that I expect will increase their dividend in the next 100 days.
Company | Symbol | Yrs of Div Increases | Yield | Expected to Annouce new Div | Anticipated Ex-Div Date | Expected Dividend Increase |
---|---|---|---|---|---|---|
Air Prod & Chem | APD | 31 | 2.38 | 21-Mar | 27-Mar | 11% |
ExxonMobil Corp | XOM | 31 | 2.63 | 24-Apr | 9-May | 11% |
Chevron Corp. | CVX | 26 | 3.46 | 24-Apr | 15-May | 10% |
General Dynamics | GD | 22 | 2.06 | 6-Mar | 10-Apr | 10% |
Clorox Company | CLX | 36 | 3.19 | 13-May | 22-Jun | 9% |
Colgate-Palmolive | CL | 50 | 2.19 | 10-Mar | 19-Apr | 8% |
Medtronic Inc. | MDT | 36 | 1.93 | 20-Jun | 2-Jul | 8% |
Mine Safety Appl. | MSA | 42 | 2.31 | 10-May | 16-May | 6% |
PepsiCo Inc. | PEP | 41 | 2.83 | 30-Apr | 5-Jun | 5% |
Weyco Group | WEYS | 32 | 2.05 | 30-Apr | 29-May | 5% |
Cullen/Frost Bank. | CFR | 20 | 2.69 | 25-Apr | 29-May | 4% |
Piedmont Nat Gas | PNY | 35 | 3.68 | 10-Mar | 21-Mar | 3% |
Sonoco Products | SON | 31 | 2.98 | 17-Apr | 15-May | 3% |
People's United | PBCT | 21 | 4.57 | 18-Apr | 29-Apr | 2% |
Which dividend hikes are you looking forward to the most? If anyone is expecting a different percentage of increase than what I have listed above please let me know in the comments.
Thanks for the information Ladders. I’m looking forward to Chevron’s increase the most. I was thrilled about some of my other holdings raising their dividends last month. Coke for instance.
-Bryan
Hello Ladder,
I believe PEP already announced a much bigger increase…
MG
Yes you are right. Informally announced but announced nonetheless. I’m surprised they are moving to a higher payout ratio.