Friday, August 16, 2013

Dividend Increases, Jul/Aug 2013

Every month I provide a summary of recent dividend increases for stocks in my watch list. Regular dividend increases are one of the important factors to consider when evaluating dividend growth stocks. 

When a stock's dividend payment is decreased, I'll generally remove it from my watch list. And if I happen to own shares in a stock that decreases its dividend payment, I'll consider selling my shares. As I've said before, this blog is about dividend growth stocks, not dividend shrink stocks!

The following table provides a summary of recent dividend increases for stocks in my watch list, sorted by the last column, %Increase. Dividend amounts are annualized. 


Dividend Increases: Jul 16 - Aug 15, 2013

Company

Ticker
Price
(Aug 14)
Previous
Dividend
New
Dividend
Current
Yield

%Increase
Vodafone Group Plc
VOD
30.02 1.02 2.09 6.95% +105.23
Union Pacific Corporation
UNP
156.78 2.76 3.16 2.02%+14.49
Petmed Express Inc
PETS
15.68 0.60 0.68 4.34% +13.33
Wisconsin Energy Corporation
WEC
41.60 1.36 1.53 3.68% +12.50
Kinder Morgan Inc
KMI
37.61 1.52 1.60 4.25% +5.26
Kellogg Company
K
64.46 1.76 1.84 2.85% +4.55
Norfolk Southern Corp.
NSC
73.55 2.00 2.08 2.83% +4.00
Leggett & Platt, Inc.
LEG
29.86 1.16 1.20 4.02% +3.45
Main Street Capital Corporation
MAIN
29.13 1.86 1.92 6.59% +3.23
Alliance Holdings GP, L.P.
AHGP
63.83 3.05 3.14 4.92% +2.95
Omega Healthcare Investors Inc
OHI
29.98 1.84 1.88 6.49% +2.17
Textainer Group Holdings Limited
TGH
34.12 1.84 1.88 5.51% +2.17
Teva Pharmaceutical Industries Ltd
TEVA
40.38 1.07 1.09 2.71% +2.03
Alliance Resource Partners, L.P.
ARLP
74.85 4.52 4.61 6.16% +1.99
Community Trust Bancorp, Inc.
CTBI
39.29 1.26 1.28 3.26% +1.59
Energy Transfer Equity, L.P.
ETE
65.21 2.58 2.62 4.02% +1.55
Kinder Morgan Energy Partners LP
KMP
82.00 5.20 5.28 6.44% +1.54
GlaxoSmithKline plc
GSK
51.53 2.202.21 4.29% +0.54
AstraZeneca plc
AZN
49.71 3.80 1.80 3.62% -52.63

Highlighted in the table is TGH, a stock in DivGro

TGH's modest dividend increase raises its current yield to 5.51%. The next quarterly dividend of 47 cents per share will be payed on August 27, to shareholders of record on August 14.

Notice that AZN shows a significant dividend decrease. Some global stocks that trade as American Depository Receipts (ADRs) on local exchanges have a pattern of paying one smaller dividend and one larger dividend every year. AZN pays dividends in February and August. The pattern for AZN since 2010 looks like this:
$1.71   $0.70 )   ( $1.85   $0.85 )   ( $1.95   $0.90 )   ( $1.90   $0.90 )
By paying $0.90 this month, AZN has confirmed a year-on-year dividend decrease, though the decrease is less than 2%. I'll probably remove AZN from my watch list for this reason.

VOD shows a significant dividend increase for a similar reason. It has a pattern of paying dividends in June and November, so I'm taking the 105.23% dividend increase with a grain of salt.

Full Disclosure: Long TGH

2 comments :

  1. Thanks for the update. I am starting to get interested in WEC, I think I'll add it to my watch list. Do you know if AZN reduced the dividend in its native currency or is the decrease a result of exchange rates?

    ReplyDelete
    Replies
    1. Yes, WEC looks interesting! I'm not sure if the lower dividend payment is due to exchange rates -- good question, though. I'll see what Dave Fish does with AZN in the US Dividend Champions list, then decide if I'll drop it from my watch list or not.

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