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Dividend Increases: April 30-May 6, 2022

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We monitor dividend changes of stocks in Dividend Radar, a weekly automatically generated spreadsheet listing stocks with dividend streaks of five years or more. The Dividend Radar spreadsheet separates stocks into categories based on the length of the streak: Champions (25+ years), Contenders (10-24 years), and Challengers (5-9 years).

This past week, 10 companies in Dividend Radar decided to increase their dividends. Note that no dividend cuts or suspensions were announced for Dividend Radar stocks.

The following table presents a summary of the dividend increases. The table is sorted into sections for Champions, Contenders, and Challengers, and then by the percentage increase (%Incr). Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for a recent price, and yrs are years of consecutive dividend increases.

The following dividend increase data are sorted alphabetically by ticker.

Company descriptions are the author’s summary of company descriptions sourced from Finviz.

Arbor Realty Trust, Inc. (ABR)

ABR invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company primarily invests in real estate-related bridge and mezzanine loans, real estate-related notes, and mortgage-related securities. ABR was founded in 2003 and is headquartered in Uniondale, New York.

  • On Feb 18, ABR declared a quarterly dividend of 37¢ per share.
  • This is an increase of 2.78% from the prior dividend of 36¢.
  • Payable Mar 18, to shareholders of record on Mar 4; ex-div: Mar 3.

CNO Financial Group, Inc. (CNO)

CNO is a holding company for a group of insurance companies operating throughout the United States. The company develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets. CNO was founded in 1979 and is headquartered in Carmel, Indiana.

  • On May 7, CNO declared a quarterly dividend of 13¢ per share.
  • This is an increase of 8.33% from the prior dividend of 12¢.
  • Payable Jun 24, to shareholders of record on Jun 10; ex-div: Jun 9.

IDEX Corporation (IEX)

IEX is an applied solutions company with 40 diverse businesses operating in more than 20 countries. The company operates through Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products. IEX was incorporated in 1987 and is headquartered in Lake Forest, Illinois.

  • On May 12, IEX declared a quarterly dividend of 54¢ ​​per share.
  • This is an increase of 8.00% from the prior dividend of 50¢.
  • Payable May 28, to shareholders of record on May 24; ex-div: May 21.

ManpowerGroup Inc. (MAN)

MAN provides workforce solutions and services in the Americas, Europe, and the Asia Pacific Middle East region. The company’s recruitment services include permanent, temporary, and contract recruitment. It also offers career management, training and development, and outsourcing of human resources functions. MAN was founded in 1948 and is headquartered in Milwaukee, Wisconsin.

  • On May 7, MAN declared a semi-annual dividend of $1.26 per share.
  • This is an increase of 7.69% from the prior dividend of $1.17.
  • Payable Jun 15, to shareholders of record on Jun 1; ex-div: May 28.

Materion Corporation (MTRN)

Formerly known as Brush Engineered Materials Inc, MTRN manufactures and sells advanced engineered materials used in consumer electronics, industrial components, defense, medical, automotive electronics, telecommunications infrastructure, energy, commercial aerospace, science, services, and appliance markets worldwide. MTRN was founded in 1931 and is headquartered in Mayfield Heights, Ohio.

  • On May 6, MTRN declared a quarterly dividend of 12¢ per share.
  • This is an increase of 4.35% from the prior dividend of 11.5¢.
  • Payable Jun 11, to shareholders of record on May 27; ex-div: May 26.

National HealthCare Corporation (NHC)

NHC is engaged in the operation of skilled nursing facilities with associated assisted living and independent living centers in the USA. The company provides sub-acute skilled and post-acute skilled nursing care, intermediate nursing care, rehabilitative care, senior living services, and home healthcare services. NHC was founded in 1971 and is based in Murfreesboro, Tennessee.

  • On Nov 4, NHC declared a quarterly dividend of 55¢ per share.
  • This is an increase of 5.77% from the prior dividend of 52¢.
  • Payable Feb 1, to shareholders of record on Dec 31; ex-div: Dec 29.

Pool Corporation (POOL)

Founded in 1993 and headquartered in Covington, Louisiana, POOL distributes swimming pool supplies, equipment, and related leisure products in North America and internationally. POOL offers maintenance products, repair and replacement parts for pool equipment, packaged pool kits, pool equipment and components for new pool construction, remodeling existing pools, and irrigation and landscape products.

  • On May 4, POOL declared a quarterly dividend of 80¢ per share.
  • This is an increase of 37.93% from the prior dividend of 58¢.
  • Payable May 28, to shareholders of record on May 17; ex-div: May 14.

RLI Corp. (RLI)

RLI is an insurance holding company that underwrites property and casualty insurance in the United States and internationally. The company also underwrites various reinsurance coverages. It operates in the Casualty, Property, and Surety segments and markets its products through branch offices and independent agents. RLI was founded in 1965 and is headquartered in Peoria, Illinois.

  • On May 6, RLI declared a quarterly dividend of 25¢ per share.
  • This is an increase of 4.17% from the prior dividend of 24¢.
  • Payable Jun 18, to shareholders of record on May 28; ex-div: May 27.

The Timken Company (TKR)

TKR was founded in 1899 and is headquartered in North Canton, Ohio. The company’s Mobile Industries segment offers bearings, seals, and lubrication devices and systems. It also offers power transmission systems and flight-critical components for civil and military aircraft. TKR’s Process Industries segment supplies industrial bearings and assemblies, power transmission components, and linear motion products.

  • On May 7, TKR declared a quarterly dividend of 30¢ per share.
  • This is an increase of 3.45% from the prior dividend of 29¢.
  • Payable Jun 3, to shareholders of record on May 21; ex-div: May 20.

Tetra Tech, Inc. (TTEK)

TTEK provides consulting and engineering services worldwide. The company offers early data collection and monitoring, data analysis and information, science and engineering applied research, feasibility studies and assessments, climate change and energy management consulting, and greenhouse gas inventory assessment, certification, reduction, and management services. TTEK was founded in 1966 and is headquartered in Pasadena, California.

  • On Apr 28, TTEK declared a quarterly dividend of 20¢ per share.
  • This is an increase of 17.65% from the prior dividend of 17¢.
  • Payable May 28, to shareholders of record on May 12; ex-div: May 11.

Please note that we’re not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Dividend Cuts And Suspensions

We’ve added this section to our weekly article series following requests from readers. Please note that we’re only covering dividend cuts and suspensions announced by companies in Dividend Radar’s spreadsheet.

There were no dividend cuts or suspensions announced for stocks in Dividend Radar during this period.

An Interesting Candidate

This section highlights one of the stocks that announced a dividend increase. We provide a quality assessment and present performance, earnings, and valuation charts.

Our objective is to identify high-quality dividend growth [DG] stocks trading at reasonable valuations. That’s tough, though, as high-quality DG stocks often trade at premium valuations. If we can’t find a worthy candidate, we’ll suggest a stock to add to your watchlist and a suitable target price.

To start, we use DVK Quality Snapshots to do a quick quality assessment, screening our list of DG stocks based on quality scores. Below is a shortlist of stocks with quality scores in the range 18-25:

Summary table and key metrics of high-quality stocks that announced dividend increases.

Created by the authors from data in Dividend Radar

let’s look at Dividend Contender IEX in this article. The stock yields 0.99% at $217.44 per share and has a 5-year dividend growth rate [DGR] of 9.3%.

IEX is rated Decent (quality score: 15-18):

Quality score breakdown of highlighted stock

Created by the author from a personal spreadsheet

Over the past ten years, IEX easily outperformed the SPDR S&P 500 ETF (spy), an ETF designed to track the 500 companies in the S&P 500 index:

Chart showing how IEX underperformed the SPY over the past decade

Portfolio-Insight.com

Over this time frame, IEX delivered total returns of 450% versus SPY’s 266%, a margin of 1.69-to-1.

If we extend the period of comparison to the past twenty years, IEX’s outperformance is even more significant: a margin of 3.30-to-1. IEX delivered total returns of 1,398% versus SPY’s 424%!

IEX’s dividend growth history is a model of consistency:

Chart of IEX's 10-year dividend growth history

Portfolio-Insight.com

The dividend growth rate [DGR] is decelerating, though, as can be seen by dividing the 5-year DGR by the 10-year DGR: 9.61 ÷ 12.38 = 0.78. A ratio below 1.00 means the DGR is decelerating.

IEX’s earnings are growing, too, but not as consistently:

Chart of IEX's 10-year Non-GAAP earnings growth history

Portfolio-Insight.com

It is good to see that FY 2022 and FY 2023 would continue the upward trend if realized.

At 33%, IEX’s earnings payout ratio is “low for most companies,” according to Simply Safe Dividends:

Chart of IEX's 10-year history of earnings and free cash flow payout

Simply Safe Dividends

IEX has plenty of room to continue growing its dividend for the foreseeable future. Simply Safe Dividends considers IEX’s dividend very safewith a Dividend Safety Score of 95.

Next, let’s now consider IEX’s valuation.

Snapshot of IEX's valuation and key metrics, courtesy of Portfolio Insight

Portfolio-Insight.com

we could estimate fair value by dividing the stock’s annualized dividend ($2.40) by its 5-year average yield (1.14%). This results in a fair value [FV] estimate of $211. Given IEX’s current price of $217.44, the stock is trading at a premium valuation relative to its past dividend yield history.

For reference, Morningstar’s FV is $185, Finbox.com’s FV is $207, Portfolio Insight’s FV is $263, and Simply Wall St’s FV is $264. The average of these fair value estimates is $230, indicating that IEX may be trading at a discount to fair value.

My own FV estimate of IEX is $204, so I believe the stock is trading at a premium of about 3.4%.

Here are the most recent Seeking Alpha articles covering IEX:

  1. Buy: Margin Headwinds Chipping Away At IDEX’s Premiumbye stephen simpson
  2. Hold: IDEX: Improving Macro And Capital Deployment, But Not Much Share Price Momentumbye stephen simpson
  3. Hold: IDEX – More Bolt-On M&A, Little Imminent Appealbye The Value Investor

Conclusion

IEX is a quality DG stock rated Decent. For stocks rated DecentI require a 10% discount to my fair value estimate. Therefore, my Buy Below price is $184

Please note that I’m not recommending IEX or any of the stocks listed in this article. Readers should do their own research on these companies before buying shares.

Thanks for reading, and happy investing!

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