Dividend Increases: April 23-29, 2022

Parker-Hannifin Canada in Milton, Ontario, Canada;

JHVEPhoto/iStock Editorial via Getty Images

We monitor dividend changes of stocks in Dividend Radar, a weekly automatically generated spreadsheet listing stocks with dividend streaks of five years or more. The Dividend Radar spreadsheet separates stocks into categories three categories: Champions (with increase streaks of 25+ years), Contenders (10-24 years), and Challengers (5-9 years).

Recently, 25 companies in Dividend Radar declared dividend increases, including two of the stocks I hold in my portfolio. Note that there were no dividend cuts or suspensions announced for Dividend Radar stocks in this period.

The following table provides a summary of the dividend increases. The table is sorted into sections for Champions, Contenders, and Challengers, and then by the percentage increase (%Incr). Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for a recent price, and Yrs are years of consecutive dividend increases.

The following dividend increase data are sorted alphabetically by ticker.

Company descriptions are the author’s summary of company descriptions sourced from Finviz.

Apple (AAPL)

Headquartered in Cupertino, California, AAPL designs, manufactures, and markets smart phones, personal computers, tablets, wearables, and accessories worldwide. The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. AAPL was founded in 1977.

  • On Apr 28, AAPL declared a quarterly dividend of 23¢ per share.
  • This is an increase of 4.55% from the prior dividend of 22¢.
  • Payable May 12, to shareholders of record on May 9; ex-div: May 6.

AGCO (AGCO)

AGCO manufactures and distributes agricultural equipment and related replacement parts worldwide. The company markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. AGCO was founded in 1990 and is headquartered in Duluth, Georgia.

  • On Apr 28, AGCO declared a quarterly dividend of 24¢ per share.
  • This is an increase of 20.00% from the prior dividend of 20¢.
  • Payable Jun 15, to shareholders of record on May 16; ex-div: May 1.

Ameriprise Financial (AMP)

Founded in 1894 and headquartered in Minneapolis, Minnesota, AMP, through its subsidiaries, provides financial products and services to individual and institutional clients in the United States and internationally. AMP was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005.

  • On Apr 25, AMP declared a quarterly dividend of $1.25 per share.
  • This is an increase of 10.62% from the prior dividend of $1.13.
  • Payable May 20, to shareholders of record on May 9; ex-div: May 6.

Avery Dennison (AVY)

AVY provides pressure-sensitive materials and a variety of tickets, tags, labels, and other converted products. The company’s pressure-sensitive materials are sold to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and die-cutting. AVY was founded in 1935 and is headquartered in Glendale, California.

  • On Apr 28, AVY declared a quarterly dividend of 75¢ per share.
  • This is an increase of 10.29% from the prior dividend of 68¢.
  • Payable Jun 15, to shareholders of record on Jun 1; ex-div: May 31.

American Water Works (AWK)

AWK is the largest publicly-traded water and wastewater utility company in the United States. Through its subsidiaries, the company provides water and wastewater services in 45 states and in Ontario, Canada. The company is headquartered in Voorhees, New Jersey, and was founded in 1886 as the American Water Works & Guarantee Company.

  • On Apr 27, AWK declared a quarterly dividend of 65.5¢ per share.
  • This is an increase of 8.62% from the prior dividend of 60.3¢.
  • Payable Jun 1, to shareholders of record on May 10; ex-div: May 9.

Cogent Communications Holdings, Inc. (CCOI)

Founded in 1999 and headquartered in Washington, D.C., CCOI provides high-speed Internet access and Internet protocol communications services to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Asia. CCOI offers bandwidths up to 100 Gigabits per second.

  • On Feb 24, CCOI declared a quarterly dividend of 85.5¢ per share.
  • This is an increase of 3.01% from the prior dividend of 83¢.
  • Payable Mar 25, to shareholders of record on Mar 9; ex-div: Mar 8.

Community Healthcare (CHCT)

CHCT is a self-managed, fully-integrated healthcare real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in non-urban markets throughout the United States. The company has investment properties in about 30 states.

  • On Apr 29, CHCT declared a quarterly dividend of 44¢ per share.
  • This is an increase of 0.57% from the prior dividend of 43.75¢.
  • Payable May 27, to shareholders of record on May 13; ex-div: May 12.

Discover Financial Services (DFS)

DFS is a direct banking and payment services company in the United States. The company’s Direct Banking segment offers Discover-branded credit cards to individuals and other consumer banking products and services. The Payment Services segment processes transactions for Discover-branded credit cards and operates an electronic funds transfer network through the PULSE network. DFS was incorporated in 1960 and is based in Riverwoods, Illinois.

  • On Apr 27, DFS declared a quarterly dividend of 60¢ per share.
  • This is an increase of 20.00% from the prior dividend of 50¢.
  • Payable Jun 9, to shareholders of record on May 26; ex-div: May 25.

Delek Logistics Partners (DKL)

DKL owns and operates logistics and marketing assets for crude oil and intermediate and refined products in the United States. The company operates in two segments, Pipelines and Transportation, and Wholesale Marketing and Terminalling. DKL was founded in 2012 and is headquartered in Brentwood, Tennessee.

  • On Apr 25, DKL declared a quarterly distribution of 98¢ per unit.
  • This is an increase of 1.03% from the prior distribution of 97¢.
  • Payable May 12, to unitholders of record on May 5; ex-div: May 4.

Evercore (EVR)

EVR is an independent investment banking advisory firm that provides advisory services to prominent multinational corporations on significant mergers, acquisitions, divestitures, restructurings, and other strategic corporate transactions. The company also has a successful investment management unit. EVR was founded in 1996 and is based in New York, New York.

  • On Apr 27, EVR declared a quarterly dividend of 72¢ per share.
  • This is an increase of 5.88% from the prior dividend of 68¢.
  • Payable Jun 10, to shareholders of record on May 27; ex-div: May 26.

First Bancshares (FBMS)

FBMS operates as the bank holding company for The First, A National Banking Association that provides general commercial and retail banking services in Mississippi, Alabama, Florida, Georgia, and Louisiana. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. FBMS was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.

  • On Apr 27, FBMS declared a quarterly dividend of 18¢ per share.
  • This is an increase of 5.88% from the prior dividend of 17¢.
  • Payable May 25, to shareholders of record on May 10; ex-div: May 9.

First Commonwealth Financial (FCF)

FCF, a financial holding company, provides various consumer and commercial banking services to individuals and small and mid-sized businesses in the United States. It also offers various trust and asset management services and stock and bond brokerage services. FCF was founded in 1934 and is headquartered in Indiana, Pennsylvania.

  • On Apr 26, FCF declared a quarterly dividend of 12¢ per share.
  • This is an increase of 4.35% from the prior dividend of 11.5¢.
  • Payable May 20, to shareholders of record on May 6; ex-div: May 5.

FactSet Research Systems (FDS)

FDS provides integrated financial information and analytical applications to investment communities worldwide. The company combines content about companies and securities from markets all over the globe into a single online platform of information and analytics. It provides desktop solutions, mobile applications, and comprehensive data feeds. FDS was founded in 1978 and is headquartered in Norwalk, Connecticut.

  • On Apr 28, FDS declared a quarterly dividend of 89¢ per share.
  • This is an increase of 8.54% from the prior dividend of 82¢.
  • Payable Jun 16, to shareholders of record on May 31; ex-div: May 27.

First Financial Bankshares (FFIN)

Founded in 1890 and headquartered in Abilene, Texas, FFIN is a financial holding company that provides commercial banking services through its subsidiary, First Financial Bank. The company provides customary commercial banking services and various types of loans, including real estate, agricultural, and commercial loans. FFIN also provides security brokerage services and personal trust services.

  • On Apr 26, FFIN declared a quarterly dividend of 17¢ per share.
  • This is an increase of 13.33% from the prior dividend of 15¢.
  • Payable Jul 1, to shareholders of record on Jun 16; ex-div: Jun 15.

Comfort Systems USA (FIX)

FIX provides mechanical installation, renovation, maintenance, repair, and replacement services for the mechanical services industry in the United States. The company serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional HVAC markets. FIX was founded in 1917 and is headquartered in Houston, Texas.

  • On Apr 27, FIX declared a quarterly dividend of 14¢ per share.
  • This is an increase of 7.69% from the prior dividend of 13¢.
  • Payable May 27, to shareholders of record on May 16; ex-div: May 13.

Hawthorn Bancshares, Inc. (HWBK)

HWBK operates as the bank holding company for Hawthorn Bank. The company offers various deposit and loan products, trust services, Internet banking services, brokerage services, safety deposit boxes, and debit cards. The company operates 23 banking offices. HWBK was founded in 1865 and is based in Jefferson City, Missouri.

  • On Apr 28, HWBK declared a quarterly dividend of 15¢ per share.
  • This is an increase of 15.38% from the prior dividend of 13¢.
  • Payable Jul 1, to shareholders of record on Jun 15; ex-div: Jun 14.

International Business Machines (IBM)

Founded in 1910 and headquartered in Armonk, New York, IBM is a global information technology (IT) company that offers consulting and application management services, IT infrastructure services, and infrastructure technologies. IBM’s Watson is a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and other computing systems.

  • On Apr 26, IBM declared a quarterly dividend of $1.65 per share.
  • This is an increase of 0.61% from the prior dividend of $1.64.
  • Payable Jun 10, to shareholders of record on May 10; ex-div: May 9.

Kimberly-Clark (KMB)

Using advanced technologies in natural and synthetic fibers, non-wovens, and absorbency, KMB manufactures a range of personal care, consumer tissue, and professional products. Brands include Huggies, Kleenex, Scott, and Cottonelle. The company sells its products directly to retail outlets and through e-commerce. KMB was founded in 1872 and is headquartered in Dallas, Texas.

  • On Apr 27, KMB declared a quarterly dividend of $1.16 per share.
  • This is an increase of 1.75% from the prior dividend of $1.14.
  • Payable Jul 5, to shareholders of record on Jun 10; ex-div: Jun 9.

Lakeland Bancorp (LBAI)

Founded in 1969 and headquartered in Oak Ridge, New Jersey, LBAI is the bank holding company for Lakeland Bank, which provides commercial, mortgage, and consumer loans; consumer banking services; and investment and advisory services. LBAI also offers wire transfer, Internet banking, mobile banking, and night depository services.

  • On Apr 28, LBAI declared a quarterly dividend of 14.5¢ per share.
  • This is an increase of 7.41% from the prior dividend of 13.5¢.
  • Payable May 18, to shareholders of record on May 9; ex-div: May 6.

MetLife (MET)

MET is engaged in insurance, annuities, employee benefits, and asset management businesses. The company operates through five segments: United States; Asia; Latin America; Europe, the Middle East, and Africa; and MetLife Holdings. MET was founded in 1863 and is headquartered in New York, New York.

  • On Apr 26, MET declared a quarterly dividend of 50¢ per share.
  • This is an increase of 4.17% from the prior dividend of 48¢.
  • Payable Jun 14, to shareholders of record on May 10; ex-div: May 9.

Peoples Bancorp (PEBO)

PEBO operates as the holding company for Peoples Bank, which provides commercial and retail banking products and services in Ohio, West Virginia, and Kentucky. The company provides deposit, loan, insurance products, and other financial services. PEBO was founded in 1902 and is based in Marietta, Ohio.

  • On Apr 26, PEBO declared a quarterly dividend of 38¢ per share.
  • This is an increase of 5.56% from the prior dividend of 36¢.
  • Payable May 23, to shareholders of record on May 9; ex-div: May 6.

Parker-Hannifin (PH)

PH is a manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a range of mobile, industrial, and aerospace markets. Customers include original equipment manufacturers and end-users in industries such as manufacturing, packaging, processing, transportation, and equipment industries. PH was founded in 1918 and is headquartered in Cleveland, Ohio.

  • On Apr 28, PH declared a quarterly dividend of $1.33 per share.
  • This is an increase of 29.13% from the prior dividend of $1.03.
  • Payable Jun 3, to shareholders of record on May 13; ex-div: May 12.

Sysco (SYY)

SYY markets and distributes a range of food and related products primarily to the food service or food-away-from-home industries. The company provides products and related services to restaurants, healthcare, educational facilities, lodging establishments, and other foodservice customers. SYY was founded in 1969 and is headquartered in Houston, Texas.

  • On Apr 28, SYY declared a quarterly dividend of 49¢ per share.
  • This is an increase of 4.26% from the prior dividend of 47¢.
  • Payable Jul 22, to shareholders of record on Jul 1; ex-div: Jun 30.

Unity Bancorp (UNTY)

UNTY operates as the holding company for Unity Bank, which provides a range of banking products and services to individuals, small and medium-sized businesses, and professional communities. The company offers personal and commercial deposit and loan accounts. UNTY was founded in 1991 and is headquartered in Clinton, New Jersey.

  • On Apr 28, UNTY declared a quarterly dividend of 11¢ per share.
  • This is an increase of 10.00% from the prior dividend of 10¢.
  • Payable Jun 24, to shareholders of record on Jun 10; ex-div: Jun 9.

Watsco (WSO)

WSO distributes air conditioning, heating, and refrigeration equipment in the United States, Canada, Mexico, and Puerto Rico. The company offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. WSO was founded in 1945 and is headquartered in Miami, Florida.

  • On Apr 28, WSO declared a quarterly dividend of $2.20 per share.
  • This is an increase of 12.82% from the prior dividend of $1.95.
  • Payable Apr 29, to shareholders of record on Apr 14; ex-div: Apr 13.

Please note that we’re not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Dividend Cuts and Suspensions

We’ve added this section to our weekly article series following requests from readers. Please note that we’re only covering dividend cuts and suspensions announced by companies in Dividend Radar’s spreadsheet.

There were no dividend cuts or suspensions announced for stocks in Dividend Radar during this period.

An Interesting Candidate

This section highlights one of the stocks that announced a dividend increase. We provide a quality assessment and present performance, earnings, and valuation charts.

Our objective is to identify high-quality dividend growth [DG] stocks trading at reasonable valuations. That’s tough, though, as high-quality DG stocks often trade at premium valuations. If we can’t find a worthy candidate, we’ll suggest a stock to add to your watchlist and a suitable target price.

To start, we use DVK Quality Snapshots to do a quick quality assessment, screening our list of DG stocks based on quality scores. Below is a shortlist of stocks with quality scores in the range 19-25:

Summary table and key metrics of high-quality stocks that announced dividend increases.

Created by the authors from data in Dividend Radar

We’ve highlighted AAPL and KMBin the past, so let’s look at Dividend King PH in this article. PH yields a modest 2.03% at $262.69 per share, while its 5-year dividend growth rate [DGR] is a respectable 10.1%.

PH is rated Fine (quality score: 19-22):

Quality score breakdown of highlighted stock

Created by the author from a personal spreadsheet

Over the past ten years, PH outperformed the SPDR S&P 500 ETF (SPY), an ETF designed to track the 500 companies in the S&P 500 index:

Chart showing how PH outperformed the SPY over the past decade

Portfolio-Insight.com

Over this time frame, PH delivered total returns of 291% versus SPY’s 266%, a margin of 1.09-to-1.

If we extend the period of comparison to the past twenty years, PH’s outperformance is nothing but spectacular! PH outperformed SPY by a wide margin of 2.38-to-1, with total returns of 998% versus SPY’s 419%!

PH’s dividend growth history is impressive:

Chart of PH's 10-year dividend growth history

Portfolio-Insight.com

The dividend growth rate [DGR] is decelerating, as can be seen by dividing the 5-year DGR by the 10-year DGR: 9.52 ÷ 10.75 = 0.89. A ratio below 1.00 means the DGR is decelerating. Note, however, that the more recent dividend increases have been somewhat higher!

Generally, PH’s earnings are growing, with a promising earnings estimate for FY 2022:

Chart of PH's 10-year Non-GAAP earnings growth history

Portfolio-Insight.com

At 23%, PH’s earnings payout ratio is “very low for most companies,” according to Simply Safe Dividends:

Chart of PH's 10-year history of earnings and free cash flow payout

Simply Safe Dividends

PH has plenty of room to continue growing its dividend! Simply Safe Dividends considers PH’s dividend Very Safe, with a Dividend Safety Score of 94.

Next, let’s now consider PH’s valuation.

Snapshot of PH's valuation and key metrics, courtesy of Portfolio Insight

Portfolio-Insight.com

We could estimate fair value by dividing the stock’s annualized dividend ($5.32) by its 5-year average yield (1.46%). This results in a fair value [FV] estimate of $364. Given PH’s current price of $262.69, the stock is trading at a discounted valuation relative to its past dividend yield history.

For reference, Morningstar’s FV is $325, CFRA’s FV is $257, Portfolio Insight’s FV is $294, Finbox.com’s FV is $339, and Simply Wall St’s FV is $515. The average of these fair value estimates is $346, also indicating that PH is trading at a discounted valuation.

My own FV estimate of PH is $306, so I believe the stock is undervalued by about 14%.

Here are the most recent Seeking Alpha articles covering PH:

  1. Buy: Parker Hannifin Makes Its Case For Fundamental Change, by Stephen Simpson
  2. Buy: Revisiting My Bullish Thesis On Parker-Hannifin, by Aristofanis Papadatos
  3. Hold: Parker-Hannifin: Onward And Upward, by M. Wayne Toepke

Conclusion

PH is a high-quality DG stock rated Fine. For stocks rated Fine, I require a discount to my fair value estimate. Therefore, my Buy Below price for PH is $306. For conservative investors, look to buy below $275.

Please note that I’m not recommending PH or any of the stocks listed in this article. Readers should do their own research on these companies before buying shares.

Thanks for reading, and happy investing!

https://seekingalpha.com/article/4513350-dividend-increases-april-23-29-2022

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