Dilok Klaisataporn
We’re effectively into 2024, and the dividend will increase have been vital. It continues to be a superb setting for dividend investing.
As an investor using a dividend-growth technique, I at all times look ahead to receiving dividends, particularly dividend will increase. I’ve noticed that firms that frequently enhance their dividend payouts carry out considerably higher than these that don’t. I continually monitor these firms and am joyful to share my insights on upcoming dividend will increase. I’ve compiled a listing of high shares anticipated to lift dividends within the upcoming week. You possibly can confidently use this evaluation to assemble your portfolio and for well timed purchases.
How I Created The Lists
The data introduced here’s a results of merging two sources of knowledge – the “U.S. Dividend Champions” spreadsheet from this web site and upcoming dividend information from NASDAQ. The method combines information on firms with a constant dividend development historical past with future dividend funds. It’s essential to know that every one firms included on this record have constantly grown in dividends for at the least 5 years.
Firms will need to have larger complete yearly dividends to be included on this record. Therefore, an organization might not enhance its dividend each calendar yr, however the complete annual dividend can nonetheless develop.
What Is The Ex-Dividend Date?
The ex-dividend date is when you need to buy shares to be eligible for the upcoming dividend or distribution. To qualify, you need to have purchased the shares by the top of the previous enterprise day. As an example, if the ex-dividend date is Tuesday, you need to have acquired the shares by the market shut on Monday. If the ex-dividend date is a Monday (or a Tuesday following a vacation on Monday), you need to have purchased the shares by the earlier Friday.
Dividend Streak Classes
Listed below are the definitions of the streak classes, as I’ll use them all through the piece.
- King: 50+ years.
- Champion/Aristocrat: 25+ years.
- Contender: 10-24 years.
- Challenger: 5+ years.
| Class | Depend |
| King | 0 |
| Champion | 1 |
| Contender | 3 |
| Challenger | 1 |
The Dividend Increasers Record
Information has been sorted by the ex-dividend day (ascending) after which by the streak (descending):
| Title | Ticker | Streak | Ahead Yield | Ex-Div Date | Enhance % | Streak Class |
| RGC Assets Inc. | (RGCO) | 23 | 4.11 | 16-Jan-24 | 1.01% | Contender |
| EOG Assets, Inc. | (EOG) | 6 | 3.16 | 16-Jan-24 | 10.30% | Challenger |
| WD-40 Firm | (WDFC) | 14 | 1.29 | 18-Jan-24 | 6.02% | Contender |
| Zoetis Inc. Class A | (ZTS) | 11 | 0.87 | 18-Jan-24 | 15.20% | Contender |
| Graco Inc. | (GGG) | 26 | 1.22 | 19-Jan-24 | 8.51% | Champion |
Area Definitions
Streak: Years of dividend development historical past are sourced from the U.S. Dividend Champions spreadsheet.
Ahead Yield: The brand new payout price is split by the present share worth.
Ex-Dividend Date: That is the date it’s essential personal the inventory.
Enhance %: The p.c enhance.
Streak Class: That is the corporate’s general dividend historical past classification.
Present Me The Cash
Right here’s a desk mapping the brand new charges versus the previous charges. It additionally reiterates the share enhance. This desk is sorted equally to the primary (ex-dividend day ascending, dividend streak descending).
| Ticker | Outdated Fee | New Fee | Enhance % |
| RGCO | 0.198 | 0.2 | 1.01% |
| EOG | 0.825 | 0.91 | 10.30% |
| WDFC | 0.83 | 0.88 | 6.02% |
| ZTS | 0.375 | 0.432 | 15.20% |
| GGG | 0.235 | 0.255 | 8.51% |
Further Metrics
Some completely different metrics associated to those firms embody yearly pricing motion and the P/E ratio. The desk is sorted the identical method because the desk above.
| Ticker | Present Value | 52 Week Low | 52 Week Excessive | PE Ratio | % Off Low | % Off Excessive |
| RGCO | 19.47 | 15.36 | 23.26 | 18.75 | 27% Off Low | 16% Off Excessive |
| EOG | 115.02 | 95.38 | 135.06 | 0 | 21% Off Low | 15% Off Excessive |
| WDFC | 272.46 | 160.53 | 245.76 | 57.71 | 70% Off Low | New Excessive |
| ZTS | 198.8 | 144.23 | 201.92 | 45.63 | 38% Off Low | 2% Off Excessive |
| GGG | 83.28 | 65.33 | 87.66 | 38.83 | 27% Off Low | 5% Off Excessive |
Tickers By Yield And Development Charges
I’ve organized the desk in descending order for buyers to prioritize the present yield. As a bonus, the desk additionally options some historic dividend development charges. Furthermore, I’ve integrated the “Chowder Rule,” which is the sum of the present yield and the five-year dividend development price.
| Ticker | Yield | 1 Yr DG | 3 Yr DG | 5 Yr DG | 10 Yr DG | Chowder Rule |
| RGCO | 4.11 | 2.3 | 4.5 | 5.3 | 5.2 | 9.5 |
| EOG | 3.16 | 21.1 | 34.5 | 35.6 | 24.6 | 38.7 |
| WDFC | 1.29 | 6.9 | 7.7 | 9.2 | 10.4 | 10.7 |
| GGG | 1.22 | 11.9 | 10.1 | 12.1 | 10.9 | 13.3 |
| ZTS | 0.87 | 18.4 | 23.8 | 24.6 | 27.3 | 25.5 |
Historic Returns
My funding technique includes discovering shares combining growing dividends and constantly outperforming the market. I take advantage of the Schwab U.S. Dividend Fairness ETF (SCHD) as my dividend development benchmark. This ETF has a outstanding monitor document of outstanding efficiency, the next yield than the S&P 500, and a confirmed document of rising dividends. I desire to spend money on the ETF if a inventory can not beat the benchmark. I’ve added firms to my private funding portfolio primarily based on this evaluation. I additionally routinely use this evaluation to decide on well timed extra purchases.
I’m evaluating SCHD to everybody on the record. I’ve chosen the 10-year dividend development price because the comparator, as that is among the key metrics to be included in SCHD. It’s additionally a proxy for achievement, as it’s arduous to repeatedly develop a dividend over lengthy intervals with out the share worth following. Listed below are the outcomes.
SCHD returned a really respectable 188% over a decade. Zoetis has been the massive winner, with a 558% complete return. You possibly can see why this has been a private maintain of mine for years.
WDFC and GGG each considerably outperformed SCHD, with returns on the 270% degree.
Lastly, RGCO and EOG got here up within the rear with considerably decrease efficiency than SCHD.
I plan to evaluation ZTS extra carefully within the subsequent few days if I want to add to my place earlier than the brand new dividend. Please do your due diligence earlier than making any funding resolution.
