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Dividend increases are an outward sign from management that the business is going well, and the company can increasingly reward shareholders. I track upcoming dividend increases from companies with a history of increasing them. The lists below contain different data points for the stocks increasing their dividends next week.

This list is a trimmed-down version only covering dividend increases. A full upcoming dividend calendar is always available here.

How I Created The Lists

I created the information below by combining the “U.S. Dividend Champions” spreadsheet hosted here with upcoming dividend information from NASDAQ. This meshes metrics about companies with dividend growth history with upcoming dividend payments. These companies all have a minimum five-year dividend growth history.

Companies are required to have higher total dividends paid out each year. Therefore, a company may not raise its dividend each calendar year, but the total annual dividend can still increase. An example shows increasing payments each year but with the same dividend over eight consecutive quarters.

Dividend increases example

BAC dividend growth history

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What Is The Ex-Dividend Date?

The “ex-dividend” date is when you are no longer entitled to the dividend or distribution. You need to have made your purchase by the preceding business day. For example, if the date is a Tuesday, you need to have purchased (or already owned) shares by the market close on Monday. Be aware that for any stock going ex-dividend on a Monday (or Tuesday, if Monday is a holiday), you must own it by the prior 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 0
Contender 0
Challenger 1

The Main 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 Increase Percent Streak Category
Zoetis Inc. Class A (ZTS) 9 0.61 19-Jan-22 30.00% 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 before which you need to own the stock.

Increase Percent: The percent increase.

Streak Category: This is the overall dividend history classification of the company.

Show Me The Money

Here’s a table mapping the new rates versus the old rates. It also reiterates the percentage increase. This table is sorted the same way as the first table (ex-dividend day ascending, dividend streak descending).

Ticker Old Rate New Rate Increase Percent
ZTS 0.25 0.325 30.00%

Additional Metrics

Here are some different metrics related to these companies, including 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 provide more margin of safety and inflated yield.

Ticker Current Price 52 Week Low 52 Week High PE Ratio % Off Low % Off High
ZTS 212.79 140.85 249.27 45.63 51% Off Low 15% Off High

Tickers By Yield And Growth Rates

Some investors are more interested in the current yield, so this table is sorted by descending by yield. The table also includes some historical dividend growth rates as a bonus. Additionally, the “Chowder Rule” has been included, the current yield + five-year dividend growth rate.

Ticker Yield 1 Yr DG 3 Yr DG 5 Yr DG 10 Yr DG Chowder Rule
ZTS 0.61 23.6 36.1 14.8 15.4

Conclusion

Zoetis stands alone this week, with their dividend increase going into effect next week. It’s a very impressive 30% increase, however. Additionally, they’ve announced a $3.5B share buyback program. Zoetis has amazingly managed to have a 3-year dividend growth rate of 36%, and even over 5 years, it’s been 15%. The recent pullback also makes shares look more appealing than prices seen right at the end of 2021.

Please be sure to do your due diligence before investing. Thanks for reading.

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