21 Jul Dividend Increases: July 15-19, 2019
I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis. Companies that regularly raise dividends show confidence in the potential growth of future earnings.
I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:
- Dividend Yield ≥ 1.0%
- Market cap ≥ $1 billion
- No stocks that are being acquired
- No Over-The-Counter or Pink Sheet stocks
This week, 16 companies that declared dividend increases passed these screens, including 2 of the stocks I hold in my portfolio.
The following table presents a summary.
The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a five-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).
Goldman Sachs (GS)
GS operates as an investment banking, securities, and investment management company worldwide. It operates in four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The company serves corporations, financial institutions, governments, and individuals. GS was founded in 1869 and is headquartered in New York, New York.
On Tuesday, July 16, the company increased its quarterly dividend by 47.06% to $1.25 per share. The first payment will be on September 27 to shareholders of record on August 30. The ex-dividend date is August 29.
Morgan Stanley (MS)
MS, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. The company operates through Institutional Securities, Wealth Management, and Investment Management segments. MS was founded in 1924 and is headquartered in New York, New York.
The company’s board of directors approved an increase in the quarterly dividend of 16.67% to 35¢ per share. All shareholders of record on July 31 can expect the dividend to be paid on August 15.
Citizens Financial (CFG)
CFG operates as the bank holding company for Citizens Bank, National Association and Citizens Bank of Pennsylvania. The company provides retail and commercial banking products and services in the United States. The company operates in two segments: Consumer Banking, and Commercial Banking. CFG was founded in 1828 and is headquartered in Providence, Rhode Island.
On July 19, the board of directors approved an increase to the regular quarterly dividend from 32¢ per share to 36¢ per share, an increase of 12.50%. All shareholders of record on July 31 can expect the dividend to be paid on August 14.
Bank of New York Mellon (BK)
BK is an investment company that provides financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments: Investment Management, and Investment Services. BK was founded in 1784 and is headquartered in New York, New York.
The company’s board of directors approved an increase in the quarterly dividend of 10.71% to 31¢ per share. The dividend is payable on August 9 to shareholders of record on July 29.
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, as well as 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 July 18, the board of directors declared a quarterly dividend of 44¢ per share. The new dividend represents an increase of 10.00%. The dividend is payable on September 5 to shareholders of record on August 22. The ex-dividend date is August 21.
UNM, together with its subsidiaries, provides group and individual disability insurance products and services primarily in the United States and the United Kingdom. The company provides long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. UNM was founded in 1848 and is based in Chattanooga, Tennessee.
The board of directors of UNM has declared a quarterly dividend of 28.5¢ per share. The new dividend is 9.62% above the prior dividend of 26¢ per share. UNM will trade ex-dividend on July 26. The dividend is payable on August 16 to shareholders of record on July 29.
KEY is an integrated multi-line financial services company. Its subsidiaries provide a wide range of investment management, retail and commercial banking, consumer finance and investment banking products and services to corporate, individual and institutional clients in the United States. KEY was founded in 1849 and is headquartered in Cleveland, Ohio.
The company declared a quarterly dividend of 18.5¢ per share, an increase of 8.82% over the prior quarterly dividend. The stock will trade ex-dividend on August 26, and shareholders can expect to receive the new dividend on September 13.
Atlantic Union Bankshares (AUB)
AUB operates as the holding company for Atlantic Union Bank, which provides banking and related…