14 Firms To Announce Annual Dividend Will increase In The Second Half Of November
Merck Ought to Announce its thirteenth Annual Dividend Improve within the Second Half of November Erik S. Lesser
That is the most recent in my sequence of articles the place I present predictions of annual dividend will increase for quite a lot of long-term dividend progress corporations. On the finish of October, I offered predictions for 15 dividend progress corporations which have traditionally introduced annual payout will increase within the first half of November. On this article I’ll take a look at one other 14 dividend progress corporations that I count on will announce their annual dividend will increase within the second half of November.
Earlier than I get to that, right here is one different long-term dividend progress firm that introduced its annual improve within the first half of November:
– Insurer Aflac (AFL) introduced a 5.0% dividend improve to an annual charge of $1.68. That is the corporate’s forty first yr of dividend progress and this improve provides AFLAC a ahead yield of two.39%.
Listed here are the outcomes from my predictions from the primary half of November (as at all times, the unique predictions can be found right here), adopted by my predictions for the dividend will increase that I’m anticipating to be introduced within the second half of November:
(All yields are based mostly on inventory costs on the market shut on Friday, November eleventh.)
Outcomes for Dividend Improve Bulletins from First Half of November
AmerisourceBergen Company (ABC) – 18 years of dividend progress
Prediction: 4.3 – 6.5% improve to $1.92 – $1.96
Precise: 5.4% improve to $1.94
Ahead yield: 1.27%
The pharmaceutical provide chain firm broke its 7-year streak of 8-cent dividend will increase this yr with a 12-cent increase.
Computerized Knowledge Processing, Inc. (ADP) – 47 years
Prediction: 10.6 – 12.5% improve to $4.60 – $4.68
Precise: 20.2% improve to $5.00
Ahead yield: 2.01%
ADP continues its report of double-digit dividend progress.
Assurant, Inc. (AIZ) – 18 years
Prediction: 2.9 – 4.4% improve to $2.80 – $2.84
Precise: 2.9% improve to $2.80
Ahead yield: 2.18%
It’s one other yr of three% dividend progress for traders within the specialty insurer.
Atmos Power Company (ATO) – 38 years
Prediction: 8.1 – 9.6% improve to $2.94 – $2.98
Precise: 8.8% improve to $2.96
Ahead yield: 2.67%
The Dallas-based pure fuel firm continues to develop its payout within the excessive single digits.
Becton, Dickinson and Firm (BDX) – 50 years
Prediction: 4.6 – 5.7% improve to $3.64 – $3.68
Precise: 4.6% improve to $3.64
Ahead yield: 1.60%
The medical gadget producer continues its sample of modest dividend progress.
Calavo Growers (CVGW) – 9 years
Prediction: 0.9 – 1.7% improve to $1.16 – $1.17
Precise: 0% improve to $1.15
Ahead yield: 3.27%
The producer of avocados and different contemporary greens moved from an annual dividend fee to quarterly funds and saved its dividend payout regular.
DTE Power Firm (DTE) – 12 years
Prediction: 1.1 – 2.3% improve to $3.58 – $3.62
Precise: 7.6% improve to $3.81
Ahead yield: 3.33%
The Detroit-based utility’s dividend increase is true in keeping with the 7% working EPS progress.
Emerson Electrical Co. (EMR) – 65 years
Prediction: 1.9 – 3.9% improve to $2.10 – $2.14
Precise: 1.0% improve to $2.08
Ahead yield: 2.18%
Emerson retains its lengthy dividend progress streak going with one other small improve.
Evergy, Inc. (EVRG) – 19 years
Prediction: 2.2 – 3.5% improve to $2.34 – $2.37
Precise: 7.0% improve to $2.45
Ahead yield: 4.13%
Regardless of flat EPS, the Missouri-based utility rewarded traders with its second straight 7% increase.
Griffon Company (GFF) – 11 years
Prediction: 5.6 – 11.1% improve to $0.38 – $0.40
Precise: Deferred to late November
The house storage and storage door firm ought to announce its newest improve earlier than Thanksgiving.
Huntington Ingalls Industries, Inc. (HII) – 10 years
Prediction: 8.1 – 10.2% improve to $5.10 – $5.20
Precise: 5.1% improve to $4.96
Ahead yield: 2.18%
The shipbuilder’s earnings bought hit with extra pension prices.
HP Inc. (HPQ) – 13 years
Prediction: 8.0 – 14.0% improve to $1.08 – $1.14
Precise: Deferred to late November
HP ought to announce its newest dividend increase the week of November 14th.
Lancaster Colony Company (LANC) – 60 years
Prediction: 0 – 2.5% improve to $3.20 – $3.28
Precise: 6.3% improve to $3.40
Ahead yield: 1.66%
Regardless of a drop in earnings, the meals firm rewarded traders with an outsized dividend increase.
MDU Sources Group, Inc. (MDU) – 31 years
Prediction: 2.3% improve to $0.89
Precise: Deferred to late November
The pure fuel utility ought to announce its annual dividend improve within the second half of November.
Nelnet, Inc. (NNI) – 8 years
Prediction: 8.3 – 12.5% improve to $1.04 – $1.08
Precise: 8.3% improve to $1.04
Ahead yield: 1.09%
The credit score servicer dedicates a major quantity of free money stream to share buybacks so, regardless of 34% EPS progress within the first half of the yr, dividend progress was restricted to single digits.
Roper Applied sciences, Inc. (ROP) – 29 years
Prediction: 9.7 – 12.9% improve to $2.72 – $2.80
Precise: 10.1% improve to $2.73
Ahead yield: 0.62%
The diversified producer was in a position to preserve its double-digit progress charge regardless of flat earnings as a result of a low payout ratio.
Snap-on Integrated (SNA) – 13 years
Prediction: 14.1 – 15.5% improve to $6.48 – $6.56
Precise: 14.1% improve to $6.48
Ahead yield: 2.77%
The software producer saved its mid-teens dividend progress charge going.
Waste Connections, Inc. (WCN) – 12 years
Prediction: 10.8 – 15.2% improve to $1.02 – $1.06
Precise: 10.8% improve to $1.02
Ahead yield: 0.75%
It’s one other yr of double-digit payout progress for traders on this Canadian waste companies firm.
Predictions for Dividend Will increase for the Second Half of November
There are 14 corporations I count on to announce their annual dividend will increase within the first half of November. First, listed here are my predictions for 3 featured corporations:
Agilent Applied sciences (A) – 11 years of dividend progress
Agilent supplies superior {hardware}, software program and companies for the medical business. The corporate has been rising rapidly and rewarding traders within the course of – during the last decade, the corporate has compounded its payout by practically 20% yearly. Nonetheless, that progress has slowed over the previous couple of years; the corporate’s 5-year progress charge is “solely” 10%, and final yr Agilent boosted its dividend by 8%. The newer dividend progress corresponds to Agilent’s focus to purchasing again inventory, and since 2017 the corporate has repurchased 5.6% of all excellent shares. So what’s going to Agilent do that yr? Nicely, the corporate grew adjusted EPS by 32% in 2021, and is guiding to an extra 17% in 2022. Traders will reap the advantages and can see a return to double-digit dividend progress from Agilent.
Prediction: 11.9 – 16.7% improve to $0.94 – $0.98
Predicted Ahead Yield: 0.63 – 0.66%
Merck & Co. (MRK) – 12 years
With solely 12 years of dividend progress, pharmaceutical mega-cap Merck is comparatively new to the listing of dividend progress corporations. The corporate’s progress charge is fairly modest, with 5-year and 10-year compounded progress charges of 8% and 5%, respectively. Merck has a number of medicine which might be driving gross sales and earnings progress proper now – Keytruda is an anti-cancer drug and Gardasil is a vaccine in opposition to the Human Papillomavirus Virus (HPV). Gross sales for these two medicine are rising at double-digits – in 20% for Keytruda and 44% for Gardasil, which is driving continued earnings progress for Merck. After rising gross sales 17% in 2021, the corporate is one other 20% in 2022, together with adjusted EPS progress of twenty-two%. Merck additionally continues to purchase again its shares and has retired 7.3% of them since 2017. The one important headwind (apart from the pure lifecycle of older medicine as they arrive off of patent safety) is a 4% hit to EPS from the robust greenback. Nonetheless, Merck has loads of room for an additional mid-single digit dividend increase in November.
Prediction: 4.2 – 7.2% improve to $2.88 – $2.96
Predicted Ahead Yield: 2.94 – 3.02 %
NIKE, Inc. (NKE) – 21 years
Like many worldwide corporations, Nike’s revenues and earnings are affected by the forex results of a powerful U. S. greenback. The corporate’s revenues are additionally affected by increased markdowns as Nike removes extra stock. Nike has a great dividend progress report, compounding its payout at greater than 13% during the last decade. And whereas there are headwinds that the corporate is combating, Nike nonetheless managed to develop revenues and EPS by 5% in fiscal 2022 (which ended Could 31, 2022). As well as, the corporate has a manageable quantity of debt and a low payout ratio beneath 35%. So whereas 2022’s EPS progress didn’t sustain, traders can nonetheless look ahead to a double-digit increase in late November.
Prediction: 9.8 – 14.8% improve to $1.34 – $1.40
Predicted Ahead Yield: 1.26 – 1.32%
Listed here are my predictions for the 11 different corporations which ought to announce annual will increase within the second half of November:
| Firm | # Yrs | Business | Prediction (%) | New Annual Fee |
| American Fairness Funding Life Holding Co. (AEL) | 18 | Insurance coverage – Life | 5.9% – 8.8% | $0.36 – $0.38 |
| American Fairness Funding markets and sells insurance coverage and annuity merchandise. Not like most corporations, AEL pays its dividend yearly. With adjusted EPS of $3.90 in 2021, the corporate’s payout ratio – at 9% – is extraordinarily low, which implies it’s much less delicate to drops in EPS. So though AEL is flat EPS in 2022, traders can count on one other 2-cent dividend improve – AEL’s ninth straight yr. | ||||
| Brown-Forman Firm (BF-B) | 38 | Meals & Drinks | 3.0% – 5.0% | $0.777 – $0.792 |
| The proprietor of many well-known alcohol manufacturers, together with Jack Daniel’s Whiskey and Finlandia Vodka, usually boosts its dividend within the low-to-mid single digits, and infrequently points a particular dividend. Though EPS are down a bit, search for Brown-Forman to proceed with the modest dividend boosts. | ||||
| CubeSmart (CUBE) | 13 | REIT – Industrial | 14.0% – 18.6% | $1.96 – $2.04 |
| Self-storage REIT CubeSmart noticed adjusted funds from operations (FFO – a metric for REITs that’s much like EPS) develop 22% in 2021 and is projecting one other 20% progress in 2022. Whereas traders in all probability gained’t see one other 26% increase like final yr’s, the corporate will nonetheless possible reward traders with a rise within the excessive teenagers. | ||||
| Hormel Meals Company (HRL) | 56 | Packaged Meals | 5.8% – 9.6% | $1.10 – $1.14 |
| Though the maker of Spam and different meals is double-digit progress, it has revised its steering decrease a number of occasions because the starting of the yr as a result of continued inflation. Given this, I feel Hormel will hedge a bit on this yr’s increase, much like final yr’s 6% improve with the potential for one thing a bit bigger. | ||||
| Matthews Worldwide Company (MATW) | 27 | Conglomerates | 4.5% – 9.1% | $0.92 – $0.96 |
| Conglomerate Matthews is being hit exhausting by inflation, provide chain points and write-downs on its Japanese European enterprise. Whereas gross sales are up, EPS is more likely to drop by 7 – 10%, that means it’ll be a fifth yr of 4 – 8 cent annual dividend progress. | ||||
| McCormick & Firm (MKC) | 23 | Packaged Meals | 6.8% – 9.5% | $1.58 – $1.62 |
| The spices and flavoring firm, proprietor of the Previous Bay, Zatarain’s and eponymous McCormick manufacturers, amongst others, is a fall of 13% in adjusted EPS as a result of power of the greenback and impacts from inflation. Even so, the corporate’s payout ratio of 55% leaves room for a lift within the excessive single-digits. | ||||
| Motorola Options (MSI) | 11 | Communication Gear | 9.5% – 11.4% | $3.46 – $3.52 |
| Not like different corporations, Motorola Options is managing by troublesome financial and geopolitical occasions. Regardless of the results of shutting down its enterprise in Russia and the robust greenback, the safety firm is guiding to adjusted EPS progress of 11%, per the corporate’s long-term dividend progress charge. | ||||
| RGC Sources (RGCO) | 22 | Utilities – Regulated Fuel | 2.6% – 5.1% | $0.80 – $.082 |
| This small-cap pure fuel utility has boosted its dividend by 4 cents in every of the final 6 years. With adjusted EPS falling by 11% within the twelve months ending June 30, 2022, RGC Sources has little room for a bigger improve. In reality, the corporate may resolve to sluggish dividend progress this yr. | ||||
| Royal Gold (RGLD) | 20 | Valuable Metals | 11.4% 14.3% | $1.56 – $1.60 |
| Income and EPS are down a bit to this point this yr on the treasured metals producer, due principally to lowering costs on gold and silver. Royal Gold has a payout ratio effectively beneath 50%, giving the corporate loads of room to proceed its double-digit dividend progress charge. | ||||
| Spire (SR) | 19 | Utilities – Regulated Fuel | 3.6% – 5.1% | $2.84 – $2.88 |
| The pure fuel utility persistently boosts its dividend within the 4 – 5% vary. With EPS predicted to fall 20% this yr which is able to push Spire’s payout ratio to 70%, traders can count on one other yr of mid-single digit progress. | ||||
| The York Water Firm (YORW) | 25 | Utilities – Regulated Water | 4.0% – 6.0% | $0.8108 – $0.8264 |
| The PA-based water and wastewater utility has paid dividends for greater than 150 years. With 6% EPS progress within the first 9 months of 2022, York Water is able to begin its 2nd quarter century of dividend progress. | ||||
Abstract
The primary half of November introduced a flurry of modest dividend will increase, with long-time dividend progress corporations Emerson and Lancaster Colony each extending their 60-year plus report. Emerson continued its historical past of very small will increase whereas Lancaster Colony started its seventh decade of dividend progress with a larger-than-expected 6.3% improve.
Among the many corporations rewarding traders with 10%+ payout boosts, most notable was ADP with one other large improve – this time a 20% improve. Additionally within the “10% membership” this month are Roper Applied sciences, Snap-On Instruments, and Waste Connections.
Arising within the second half of November, traders can count on double-digit will increase from Agilent Applied sciences, Nike, CubeSmart, and Royal Gold.
I hope all of my readers in america a really completely satisfied Thanksgiving vacation!
