Evening pictures
Welcome back to another edition of our upcoming dividend increases. This week includes ten more companies with a history of raising their dividends. We don’t have any dividend king anchors this week, but we do feature two well-known insurance companies, one of which is… including Berkshire Hathaway (BRK.A) (BRKB) The position was built recently. The overall group of companies had an average increase of 7.7% and a median of 7.6%, which is almost perfectly balanced.
My investment strategy involves buying and adding to companies that consistently increase their earnings and can beat a similar benchmark. The information in this article was created to meet my investment needs, and I am happy to share my findings with my Alpha Seeking audience. This list can help you make smart investment choices and create a successful long-term portfolio.
How do you create lists?
following The information is the result of combining two data sources: a “US Dividend Champions” spreadsheet from a certain website and upcoming earnings data from NASDAQ. This process combines data on companies that have a consistent history of earnings growth with future dividend payments. It’s important to understand that all of the companies on this list have consistently increased their dividends for at least five years.
Companies must have higher gross annual profits to be included on this list. Therefore, a company may not increase its earnings every calendar year, but total annual earnings can still grow.
What is the ex-dividend history?
The ex-dividend date is the date on which you must own shares to qualify for an upcoming dividend or distribution. To be eligible, you must have purchased shares by the end of the previous business day. For example, if the ex-dividend date is Tuesday, you should have received the shares by market close on Monday. If the ex-dividend date is a Monday (or the Tuesday following a holiday Monday), you must have purchased shares by the previous Friday.
Classes of dividends
Below are the definitions of the font classes, as I will be using them throughout the piece.
- King: More than 50 years.
- Hero/Aristocrat: 25+ years.
- Competitor: 10-24 years old.
- Challenger: 5+ years.
| category | number |
| king | 0 |
| hero | 2 |
| rival | 6 |
| Challenger | 2 |
List of increased profits
Data were sorted by ex-dividend date (ascending) and then by line (descending):
| name | tape | Effect | Forward return | History of the previous section | Percentage increase | Font class |
| Travelers company | (TRV) | 22 | 2.02 | 10 Jun 24 | 5.00% | rival |
| CNO Financial Group | (Know) | 12 | 2.27 | 10 Jun 24 | 6.67% | rival |
| Victory Capital Holdings | (Factor) | 5 | 2.9 | 10 Jun 24 | 10.45% | Challenger |
| CHEP LIMITED | (CB) | 31 | 1.38 | 14 Jun 24 | 5.81% | hero |
| Alerus Financial Company | (ALRS) | 25 | 4.15 | 14 Jun 24 | 5.26% | hero |
| Chesapeake Public Utilities Company | (KBC) | 21 | 2.32 | 14 Jun 24 | 8.47% | rival |
| Hawthorne Banshares, Inc | (Hopek) | 13 | 3.81 | 14 Jun 24 | 11.76% | rival |
| Nasdaq, Inc. | (Nadaq) | 12 | 1.61 | 14 Jun 24 | 9.09% | rival |
| Enterprise Financial Services Corporation | (EFSC) | 10 | 2.71 | 14 Jun 24 | 4.00% | rival |
| Hamilton Lane Incorporated – Class A common stock | (HLNE) | 7 | 1.59 | 14 Jun 24 | 10.11% | Challenger |
Domain definitions
Effect: Years of dividend growth history are obtained from the US Dividend Champions spreadsheet.
Forward return: The rate of return is calculated by dividing the new rate of return by the current stock price.
Previous earnings history: This is the date you need to own the stock.
Percentage increase: Percent increase.
Font class: This is the general classification of the company’s earnings history.
Show me the money
Below is a table showing the new and old prices and the percentage increase. The table is sorted by the previous dividend day in ascending order and the dividend series in descending order.
| tape | old price | New rate | Percentage increase |
| luxury | 1 | 1.05 | 5.00% |
| CNO | 0.15 | 0.16 | 6.67% |
| He thought more | 0.335 | 0.37 | 10.45% |
| CB | 0.86 | 0.91 | 5.81% |
| ALRS | 0.19 | 0.2 | 5.26% |
| CBK | 0.59 | 0.64 | 8.47% |
| HWBK | 0.17 | 0.19 | 11.76% |
| Nadak | 0.22 | 0.24 | 9.09% |
| EFSC | 0.25 | 0.26 | 4.00% |
| HLNE | 0.445 | 0.49 | 10.11% |
Additional metrics
Some different metrics related to these companies include annual pricing actions and P/E ratio. The table is sorted in the same way as in the table above.
| tape | Current price | 52 week low | High 52 weeks | percentage of polyethylene | Low % discount | % high discount |
| luxury | 208.41 | 155.76 | 232.75 | 15.33 | Low 34% off | 10% discount on high price |
| CNO | 28.2 | 21.67 | 29.09 | 7.21 | Low 30% off | 3% discount on high price |
| He thought more | 50.95 | 27.87 | 54.94 | 7.55 | Low 83% off | 7% discount on the high price |
| CB | 264.16 | 181.66 | 275.41 | 30.3 | Low 45% off | 4% discount on the high price |
| ALRS | 19.27 | 16.19 | 25.41 | 10.42 | Low 19% off | High 24% discount |
| CBK | 110.31 | 82.86 | 130.12 | 25.66 | Low 33% off | 15% high discount |
| HWBK | 19.95 | 14.52 | 25.55 | 10.36 | Low 37% off | High 22% discount |
| Nadak | 59.72 | 46.17 | 64.25 | 23.56 | Low 29% off | 7% discount on the high price |
| EFSC | 38.35 | 32.18 | 45.58 | 12.56 | Low 19% off | High 16% discount |
| HLNE | 123.39 | 71.27 | 130.97 | 39.11 | Low 73% off | 6% discount on the high price |
Indicators according to yield and growth rates
I’ve arranged the table in descending order, so investors can prioritize the current return. As a bonus, the table also contains some historical earnings growth rates. Furthermore, I incorporate the “Chowder Rule,” which is the sum of the current return and the five-year dividend growth rate.
| tape | fruit | 1 year General Directorate | 3 years General Directorate | 5 years General Directorate | 10 years General Directorate | Chowder base |
| ALRS | 4.15 | 5.6 | 8.2 | 7.1 | 8.2 | 11.3 |
| HWBK | 3.81 | 4 | 15.2 | 15.6 | 17.4 | 19.5 |
| He thought more | 2.9 | 21 | 68.7 | |||
| EFSC | 2.71 | 6.4 | 11.6 | 14.9 | 16.9 | 17.7 |
| CBK | 2.32 | 10.3 | 10.3 | 9.8 | 8.7 | 12.1 |
| CNO | 2.27 | 7.2 | 7.7 | 8.5 | 14.9 | 10.8 |
| luxury | 2.02 | 7.5 | 5.6 | 5.4 | 7.2 | 7.4 |
| Nadak | 1.61 | 10 | 10.4 | 8.5 | 17.6 | 10.1 |
| HLNE | 1.59 | 11.3 | 12.5 | 15.9 | 17.5 | |
| CB | 1.38 | 3.6 | 3.3 | 3.3 | 4.2 | 4.7 |
Historical returns
As mentioned above, my investment approach involves identifying stocks that consistently outperform the market while increasing their dividends. I use the Schwab US Dividend Equity ETF (SCHD) as a benchmark to measure performance. I use Cohen & Steers REIT & Preferred Income Fund (RNP) for real estate investment trusts. SCHD has a track record of exceptional performance, delivers a higher yield than the S&P 500, and consistently increases its dividend. If a stock cannot beat its benchmark, I would rather invest in an ETF. I have selected several companies for my portfolio using this analysis. In addition, I rely on this analysis to make additional purchases at the right time for my portfolio.
The ten-year earnings growth rate is one of the four main factors in the index behind SCHD. It is also an indicator of success, although it is not a perfect indicator. Stock prices tend to follow strong earnings growth over long periods. Here’s a comparison between SCHD and those with a ten-year dividend growth rate.
Over the past decade, SCHD has returned about 181% (dividends are reinvested in all of these results). Week after week, SCHD tends to score near the top of the score pack. Three companies delivered outperformance: NDAQ (462%), CB (211%), and CPK (194%). After that, everyone defaulted to SCHD.
Berkshire Hathaway recently revealed that it is building a position in Chubb. Naturally, building an oracle position becomes a self-fulfilling prophecy for short-term stock movements as other investors pile in.
Next steps
After reviewing each company’s statistics and total return performance, I’m only interested in looking at the NDAQ. Based on my investment criteria, I look for companies with a history of outperforming SCHD (or RNP for REITs). I’ve been disappointed in the past when I pick undersized companies, usually coupled with reaching unsafe return levels.
The NASDAQ is interesting because its performance can be easily seen near the upper level of the chart above throughout the time frame. I cringe when a company outperforms SCHD overall but may lag significantly for years. What gives me some caution is the rocket ride the stock has taken during the coronavirus. It saw a rapid expansion in private equity prices, then a strong decline again during the downturn in 2022 that many growth stocks experienced. Their acquisition of Adenza is considered a big deal; It was about 30% of their market cap at the time! I plan to take a closer look this week, compare it to my current holdings, and see if it’s worth a portion of my dividend growth shares. Let me know what you think of my strategy, and feel free to add your own in the comments below!
As always, please conduct your due diligence before making any investment decision.
