This article was co-produced with James Marino Sr. of Portfolio Insight.

We monitor dividend increases for stocks using [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 based on the length of the streak: Champions (25+ years), Contenders (10- 24 years), and Challengers (5-9 years).

This past week, two companies in Dividend Radar declared dividend increases and one company announced a future dividend cut. The following table presents 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 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 5-year period. Some companies increase their dividends more than once a year, so the last column (1-yr DGR) indicates the percentage increase from the year-ago dividend.

Source: Created by the authors from data in Dividend Radar

The following dividend increase data are sorted alphabetically by ticker.

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

Duke Energy Corporation (DUK)

Incorporated in 2005 and headquartered in Charlotte, North Caroline, DUK is an energy company that operates through direct and indirect subsidiaries. The company’s Electric Utilities and Infrastructure segment provides electricity to approximately 7.5 million customers in the Southeast and Midwest regions of the United States. The company’s Gas Utilities and Infrastructure segment provides natural gas to residential, commercial, and industrial customers. DUK’s Commercial Renewables segment acquires, builds, and operates wind and solar renewable generation projects.

  • On Jul 6, DUK declared a quarterly dividend of 96.5¢ per share.
  • This is an increase of 2.12% from the prior dividend of 94.5¢.
  • Payable Sep 16, to shareholders of record on Aug 14; ex-div: Aug 13.

Walgreens Boots Alliance, Inc. (WBA)

WBA operates a network of drugstores in the United States. The company sells prescription and non-prescription drugs as well as general merchandise products, including household items, convenience and fresh foods, personal and beauty care products, and photofinishing services. WBA was founded in 1901 and is based in Deerfield, Illinois.

  • On Jul 8, WBA declared a quarterly dividend of 46.75¢ per share.
  • This is an increase of 2.19% from the prior dividend of 45.75¢.
  • Payable Sep 11, to shareholders of record on Aug 19; ex-div: Aug 18.

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

Below, we’re including charts from F.A.S.T. Graphs for this week’s dividend raisers, WBA and DUK.

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In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart.)

Source: F.A.S.T. Graphs

WBA’s price line [black] is below the primary valuation line [orange] and below the stock’s normal P/E ratio [blue]. The stock is trading at a discount fair value. An investment in WBA in September 2010 would have returned 7.2% on an annualized basis (with dividends included).

Source: F.A.S.T. Graphs

DUK’s price line is below the stock’s normal P/E ratio and above the primary valuation line. The stock is trading at about fair value. An investment in DUK in January 2010 would have returned 7.9% on an annualized basis (with dividends included).

Dividend Cuts and Suspensions

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

Dominion Energy Inc. (D)

On July 5, D announced an agreement to sell its gas transmission storage assets to an affiliate of Berkshire Hathaway Inc. (BRK.A). Included in the announcement is a paragraph on dividend guidance. The company expects to make an additional dividend payment of 94¢ per share in September, before cutting its dividend with a December payment of approximately 62.5¢. This would represent a dividend decrease of 33.5%.

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Upcoming Ex-Dividend Dates

Here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is divided into sections by Ex-Div Date and sorted by Ticker for each date. Please note that Payout is the dollar amount payable per share or unit on the Pay Date.

Summary of Upcoming Ex-Dividend Dates: July 13-26, 2020

Company (Ticker)

Yrs

Price

(10.Jul)

Yield

5-Yr

DGR

Pay-

out

Pay

Date

Monday, 13 July (Ex-Div Date 07/13)

Apogee Enterprises, Inc. (APOG)

9

$22.04

3.40%

11.5%

0.1875

07/29

MSC Industrial Direct Co., Inc. (MSM)

18

$64.64

4.64%

14.4%

0.75

07/28

Tuesday, 14 July (Ex-Div Date 07/14)

AbbVie Inc. (ABBV)

8

$96.83

4.87%

19.6%

1.18

08/14

Abbott Laboratories (ABT)

7

$93.04

1.55%

8.1%

0.36

08/15

American Financial Group, Inc. (AFG)

15

$59.25

3.04%

12.5%

0.45

07/27

Franklin Resources, Inc. (BEN)

40

$21.10

5.12%

7.0%

0.27

07/27

Camden National Corporation (CAC)

8

$32.97

4.00%

10.6%

0.33

07/31

City Holding Company (CHCO)

10

$61.61

3.70%

6.7%

0.57

07/31

Mid-America Apartment Communities, Inc. (MAA)

11

$113.60

3.52%

5.5%

1

07/31

Oracle Corporation (ORCL)

11

$57.39

1.67%

13.5%

0.24

07/28

RGC Resources, Inc. (RGCO)

20

$23.80

2.94%

6.2%

0.175

08/01

Trinity Industries, Inc. (TRN)

10

$20.42

3.72%

12.5%

0.19

07/31

VSE Corporation (VSEC)

17

$29.11

1.24%

12.5%

0.09

07/29

Wednesday, 15 July (Ex-Div Date 07/15)

Accenture plc (ACN)

16

$220.26

1.45%

3.3%

0.8

08/14

Alamo Group Inc. (ALG)

6

$98.29

0.53%

10.8%

0.13

07/29

IDEX Corporation (IEX)

11

$156.94

1.27%

11.5%

0.5

07/31

Owens Corning (OC)

7

$55.31

1.74%

7.2%

0.24

08/07

RPM International Inc. (RPM)

46

$75.71

1.90%

7.0%

0.36

07/31

Watsco, Inc. (WSO)

7

$184.09

3.86%

20.4%

1.775

07/31

Watsco, Inc. (WSO)

7

$178.40

3.98%

20.4%

1.775

07/31

Thursday, 16 July (Ex-Div Date 07/16)

Saul Centers, Inc. (BFS)

6

$30.72

6.90%

5.4%

0.53

07/31

The GEO Group, Inc. (GEO)

7

$11.86

16.19%

3.5%

0.48

07/24

Quaker Chemical Corporation (KWR)

13

$186.49

0.83%

5.1%

0.385

07/31

McGrath RentCorp (MGRC)

28

$51.25

3.28%

9.4%

0.42

07/31

Norwood Financial Corp. (NWFL)

20

$25.72

3.89%

4.0%

0.25

08/03

Pathfinder Bancorp, Inc. (PBHC)

5

$9.65

2.49%

20.0%

0.06

08/14

The PNC Financial Services Group, Inc. (PNC)

10

$101.60

4.53%

18.7%

1.15

08/05

WD-40 Company (WDFC)

11

$194.06

1.38%

12.2%

0.67

07/31

Zoetis Inc. (ZTS)

8

$137.10

0.58%

18.6%

0.2

09/01

Friday, 17 July (Ex-Div Date 07/17)

Caterpillar Inc. (CAT)

27

$128.01

3.22%

8.0%

1.03

08/20

Colgate-Palmolive Company (CL)

57

$73.68

2.39%

3.5%

0.44

08/14

Graco Inc. (GGG)

23

$48.42

1.45%

11.8%

0.175

08/05

Main Street Capital Corporation (MAIN)

10

$29.26

8.41%

3.7%

0.205

08/14

Tuesday, 21 July (Ex-Div Date 07/21)

H.B. Fuller Company (FUL)

51

$43.11

1.51%

5.6%

0.1625

08/06

Lowe’s Companies, Inc. (LOW)

58

$137.43

1.60%

19.1%

0.55

08/05

Thursday, 23 July (Ex-Div Date 07/23)

Williams-Sonoma, Inc. (WSM)

14

$85.02

2.26%

7.5%

0.48

08/28

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With so many stocks going ex-dividend in the next two weeks, we can use added value metrics in Dividend Radar to highlight interesting candidates.

We screen for stocks trading In the Margin of Safety or At Fair Value with positive 3-yr trailing total returns (3-yr TTR).

Source: Created by the authors from data in Dividend Radar

Next, we like to look for stocks whose 1-yr TTR is greater than their 3-yr TTR (colored green in the table). Two stocks pass these screens: ABBV and LOW.

Since we looked at ABBV last week, let’s consider LOW.

Dividend Champion LOW is a home improvement retailer that offers a complete line of products for maintenance, repair, remodeling, and home decorating. It also offers installation services through independent contractors, as well as extended protection plans and repair services. LOW yields 1.6% at $137.43 per share and offers an impressive 5-yr DGR of about 19%:

Source: Portfolio Insight

The stock has a quality rating of 21 (Rating: Fine).

Last week, the stock received bullish coverage by two different authors on Seeking Alpha:

Thanks for reading and happy investing!

Disclosure: I am/we are long LOW, WBA. 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.



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