Galeanu Mihai
As a dividend-growth investor, I can’t get enough of my dividends. Receiving dividend checks is one of the great joys of investing life. Not only that, but companies that consistently boost their payouts perform significantly better than those that don’t. As someone who closely monitors these companies, I’m happy to share valuable insights on upcoming dividend increases. With these lists, you can confidently expect to see the top stocks expected to raise their dividends in the upcoming week. I use this analysis for my portfolio construction and actionable items as they come up.
This week features a lot of up-and-comers in the dividend growth space. The average and median streak length is 12 years, just after the Great Financial Crisis. With just a few weeks left, this is the company’s last chance to announce their boost.
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 their future dividend payments. It’s important to grasp that all companies included in this list have consistently grown in dividends for at least five years.
Companies must have higher total dividends paid each year to be included in this list. Hence, a company may not boost 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. It’s important to note that 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 | 1 |
| Contender | 9 |
| Challenger | 5 |
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 | boost Percent | Streak Category |
| HP Inc. | (HPQ) | 14 | 3.86 | 12-Dec-23 | 4.94% | Contender |
| Regency Centers Corporation | (REG) | 11 | 4.2 | 13-Dec-23 | 3.08% | Contender |
| Prosperity Bancshares, Inc. | (PB) | 25 | 3.59 | 14-Dec-23 | 1.82% | Champion |
| Hanover Insurance Group Inc | (THG) | 19 | 2.68 | 14-Dec-23 | 4.94% | Contender |
| Merck & Company, Inc. Common Stock (new) | (MRK) | 13 | 2.92 | 14-Dec-23 | 5.48% | Contender |
| Avient Corporation | (AVNT) | 13 | 2.9 | 14-Dec-23 | 3.63% | Contender |
| FNF Group of Fidelity National Financial, Inc. | (FNF) | 12 | 4.14 | 14-Dec-23 | 6.67% | Contender |
| Motorola Solutions, Inc. | (MSI) | 12 | 1.22 | 14-Dec-23 | 11.36% | Contender |
| ChoiceOne Financial Services, Inc. | (COFS) | 12 | 3.98 | 14-Dec-23 | 3.85% | Contender |
| Air Lease Corporation Class A | (AL) | 11 | 2.12 | 14-Dec-23 | 5.00% | Contender |
| NexPoint Residential Trust, Inc. | (NXRT) | 8 | 5.79 | 14-Dec-23 | 10.00% | Challenger |
| Capital Southwest Corporation | (CSWC) | 8 | 10.03 | 14-Dec-23 | 1.61% | Challenger |
| Sonic Automotive, Inc. | (SAH) | 8 | 2.39 | 14-Dec-23 | 3.45% | Challenger |
| Devon Energy Corporation | (DVN) | 6 | 6.64 | 14-Dec-23 | 57.14% | Challenger |
| Leidos Holdings, Inc. | (LDOS) | 5 | 1.39 | 14-Dec-23 | 5.56% | 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.
boost Percent: The percent boost.
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 boost. This table is sorted similarly to the first (ex-dividend day ascending, dividend streak descending).
| Ticker | Old Rate | New Rate | boost Percent |
| HPQ | 0.263 | 0.276 | 4.94% |
| REG | 0.65 | 0.67 | 3.08% |
| PB | 0.55 | 0.56 | 1.82% |
| THG | 0.81 | 0.85 | 4.94% |
| MRK | 0.73 | 0.77 | 5.48% |
| AVNT | 0.248 | 0.257 | 3.63% |
| MSI | 0.88 | 0.98 | 11.36% |
| FNF | 0.45 | 0.48 | 6.67% |
| COFS | 0.26 | 0.27 | 3.85% |
| AL | 0.2 | 0.21 | 5.00% |
| SAH | 0.29 | 0.3 | 3.45% |
| NXRT | 0.42 | 0.462 | 10.00% |
| CSWC | 0.62 | 0.63 | 1.61% |
| DVN | 0.49 | 0.77 | 57.14% |
| LDOS | 0.36 | 0.38 | 5.56% |
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 furnish more margin of safety and inflated yield.
| Ticker | Current Price | 52 Week Low | 52 Week High | PE Ratio | % Off Low | % Off High |
| HPQ | 28.5 | 25.22 | 33.6 | 11.84 | 13% Off Low | 15% Off High |
| REG | 63.78 | 52.48 | 65.49 | 173.64 | 22% Off Low | 3% Off High |
| PB | 62.33 | 49.6 | 76.59 | 12.2 | 26% Off Low | 19% Off High |
| THG | 126.72 | 103.06 | 145.68 | 14.83 | 23% Off Low | 13% Off High |
| MRK | 105.66 | 94.42 | 118.05 | 18.22 | 12% Off Low | 10% Off High |
| AVNT | 35.51 | 27.73 | 43.89 | 48.79 | 28% Off Low | 19% Off High |
| COFS | 27.12 | 15.84 | 28.45 | 15.38 | 71% Off Low | 5% Off High |
| FNF | 46.36 | 31.09 | 46.9 | 10.48 | 49% Off Low | 1% Off High |
| MSI | 322.47 | 248.58 | 325.9 | 38.15 | 30% Off Low | 1% Off High |
| AL | 39.71 | 33.33 | 45.74 | 8.42 | 19% Off Low | 13% Off High |
| SAH | 50.24 | 38.56 | 61.2 | 0 | 30% Off Low | 18% Off High |
| NXRT | 31.93 | 26.21 | 51.22 | 32.57 | 22% Off Low | 38% Off High |
| CSWC | 22.73 | 14.34 | 23.35 | 0 | 59% Off Low | 3% Off High |
| DVN | 43.24 | 42.59 | 64.98 | 0 | 2% Off Low | 33% Off High |
| LDOS | 109.71 | 75.96 | 111.39 | 24.35 | 44% Off Low | 2% 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 regulate,” 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 regulate |
| DVN | 6.64 | 27.9 | 24.9 | 22.8 | -0.7 | 29.4 |
| NXRT | 5.79 | 10.5 | 10.4 | 10.9 | 16.6 | |
| REG | 4.2 | 4 | 3.1 | 3.5 | 3.5 | 7.7 |
| FNF | 4.14 | 2.3 | 10.9 | 9 | 10.9 | 13.2 |
| COFS | 3.98 | 4 | 9.1 | 8.5 | 8 | 12.6 |
| HPQ | 3.86 | 5 | 14.2 | 13.5 | 6.6 | 17.3 |
| PB | 3.59 | 5.8 | 6.1 | 8.9 | 9.9 | 12.5 |
| MRK | 2.92 | 5.8 | 6.2 | 8.8 | 5.4 | 11.7 |
| AVNT | 2.9 | 4.2 | 6.9 | 7.2 | 15.7 | 10.1 |
| THG | 2.68 | 8 | 7.6 | 8.5 | 9.4 | 11.2 |
| SAH | 2.39 | 31 | 41.8 | 37.7 | 27.6 | 40.1 |
| AL | 2.12 | 8.1 | 10.1 | 14.9 | 26.7 | 17.1 |
| LDOS | 1.39 | 0 | 1.9 | 2.4 | -2.8 | 3.8 |
| MSI | 1.22 | 11.4 | 11.2 | 11.1 | 12.4 | 12.3 |
| CSWC | 10.03 | 11.4 | 9.7 | 13 | 9.3 | 23 |
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. Investing in the ETF is better 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 select timely additional purchases.
Here’s the total return chart of SCHD versus the ten-highest 10-year dividend growth companies. I use this as a proxy for success; if a company can grow its annual dividend boost at high rates for long periods, shares should follow. For reference, SCHD has returned about 153% over the decade.
MSI has been an incredible performer, with a total return of 467%! Looking over the decade, it was a top performer going into 2020, but it has really separated itself in the past two years.
CSWC, FNF, and THG were the only other companies that outperformed SCHD, with total returns of 288%, 234%, and 159%, respectively.
Unfortunately, everyone else lagged SCHD to a certain extent.
Please do your due diligence before investing, and thanks for reading.
