Dividend Increases: February 5-11, 2022

Stock Market


T. Rowe Price

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We monitor dividend announcements for stocks in Dividend Radar, a spreadsheet we update and publish for free every Friday. The spreadsheet provides key data of 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).

Recently, 20 companies in Dividend Radar declared dividend increases, including two of the stocks I hold in my portfolio. Note there were no dividend cuts or suspensions announced for Dividend Radar stocks during this period.

The table below 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.

Ameren Corporation (AEE)

AEE operates as a public utility holding company in the United States. The company engages in rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses. AEE was founded in 1997 and is headquartered in St. Louis, Missouri.

  • On Feb 11, AEE declared a quarterly dividend of 59¢ per share.
  • This is an increase of 7.27% from the prior dividend of 55¢.
  • Payable Mar 31, to shareholders of record on Mar 9; ex-div: Mar 8.

Auburn National Bancorporation, Inc. (AUBN)

AUBN operates as the bank holding company for AuburnBank, providing various banking products and services in East Alabama. The company provides various deposit and loan products, as well as a range of financial services. AUBN was founded in 1907 and is headquartered in Auburn, Alabama.

  • On Feb 8, AUBN declared a quarterly dividend of 26.5¢ per share.
  • This is an increase of 1.92% from the prior dividend of 26¢.
  • Payable Mar 25, to shareholders of record on Mar 10; ex-div: Mar 9.

Brookfield Asset Management Inc. (BAM)

BAM is a publicly owned asset management holding company based in Toronto, Canada. The company owns and manages office properties and offers clients bridge and mezzanine lending services. Through subsidiaries, it operates hydroelectric power and transmission facilities. Finally, BAM manages real estate and hedge funds and invests in equity and fixed income markets worldwide.

  • On Feb 10, BAM declared a quarterly dividend of 14¢ per share.
  • This is an increase of 7.69% from the prior dividend of 13¢.
  • Payable Mar 31, to shareholders of record on Feb 28; ex-div: Feb 25.

Community Healthcare Trust Incorporated (CHCT)

CHCT is a self-managed, fully-integrated healthcare real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in non-urban markets throughout the United States. The company has investment properties in about 30 states.

  • On Feb 11, CHCT declared a quarterly dividend of 43.75¢ per share.
  • This is an increase of 0.57% from the prior dividend of 43.5¢.
  • Payable Mar 1, to shareholders of record on Feb 22; ex-div: Feb 18.

Amdocs Limited (DOX)

Founded in 1988 and headquartered in Chesterfield, Missouri, DOX provides software and services to communications, pay-TV, entertainment, and media industry service providers. The company also provides advisory services, mobile financial services,, and advertising and media services. DOX was founded in 1988 and is headquartered in Chesterfield, Missouri.

  • On Feb 7, DOX declared a quarterly dividend of 39.5¢ per share.
  • This is an increase of 9.72% from the prior dividend of 36¢.
  • Payable Apr 29, to shareholders of record on Mar 31; ex-div: Mar 30.

First Industrial Realty Trust, Inc. (FR)

FR is a real estate investment trust. The company owns, manages, acquires, sells, develops, and redevelops industrial real estate in about 23 states in the USA. FR’s in-service portfolio consists of light industrial properties, research and development properties, bulk warehouse properties, and regional warehouse properties.

  • On Feb 9, FR declared a quarterly dividend of 29.5¢ per share.
  • This is an increase of 9.26% from the prior dividend of 27¢.
  • Payable Apr 18, to shareholders of record on Mar 31; ex-div: Mar 30.

Healthcare Services Group, Inc. (HCSG)

HCSG provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers, and hospitals located throughout the United States. HCSG was founded in 1976 and is based in Bensalem, Pennsylvania.

  • On Feb 9, HCSG declared a quarterly dividend of 21.13¢ per share.
  • This is an increase of 0.62% from the prior dividend of 21¢.
  • Payable Mar 25, to shareholders of record on Feb 25; ex-div: Feb 24.

The Interpublic Group of Companies, Inc. (IPG)

IPG is a global advertising and marketing services company. The company specializes in consumer advertising, digital marketing, communications planning, media buying, public relations, and specialized communications disciplines. It operates in two segments: Integrated Agency Networks and Constituency Management Group. IPG was founded in 1902 and is headquartered in New York, New York.

  • On Feb 10, IPG declared a quarterly dividend of 29¢ per share.
  • This is an increase of 7.41% from the prior dividend of 27¢.
  • Payable Mar 15, to shareholders of record on Mar 1; ex-div: Feb 28.

Landmark Bancorp, Inc. (LARK)

LARK operates as the bank holding company for Landmark National Bank that provides various financial and banking services in the state of Kansas. The company offers various deposit and loan products for residential and business customers. LARK was founded in 1885 and is headquartered in Manhattan, Kansas.

  • On Feb 7, LARK declared a quarterly dividend of 21¢ per share.
  • This is an increase of 5.00% from the prior dividend of 20¢.
  • Payable Mar 2, to shareholders of record on Feb 16; ex-div: Feb 15.

Lake Shore Bancorp, Inc. (LSBK)

LSBK operates as the savings and loan holding company for Lake Shore Savings Bank that provides banking products and services. The company provides various deposit and loan products at full-service branch locations in Western New York. LSBK was founded in 1891 and is headquartered in Dunkirk, New York.

  • On Feb 11, LSBK declared a quarterly dividend of 16¢ per share.
  • This is an increase of 14.29% from the prior dividend of 14¢.
  • Payable Mar 17, to shareholders of record on Feb 24; ex-div: Feb 23.

Moody’s Corporation (MCO)

Headquartered in New York, New York, MCO operates through two segments, Moody’s Investors Service and Moody’s Analytics. The Moody’s Investors Service segment publishes credit ratings on various debt obligations and entities that issue such obligations. The Moody’s Analytics segment develops products and services that support financial analysis and risk management activities. MCO was founded in 1900.

  • On Feb 10, MCO declared a quarterly dividend of 70¢ per share.
  • This is an increase of 12.90% from the prior dividend of 62¢.
  • Payable Mar 18, to shareholders of record on Feb 25; ex-div: Feb 24.

Manulife Financial Corporation (MFC)

MFC and its subsidiaries provide financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions in Asia, Canada, and the United States. Additionally, the company holds interests in oil and gas properties and royalties, as well as foreign bonds and equities. MFC was founded in 1887 and is headquartered in Toronto, Canada.

  • On Feb 9, MFC declared a semi-annual dividend of CAD 33¢ per share.
  • This is an increase of 17.86% from the prior dividend of CAD 28¢.
  • Payable Mar 21, to shareholders of record on Feb 23; ex-div: Feb 22.

3M Company (MMM)

MMM is a diversified technology company with worldwide operations. The company has leading positions in consumer and office; display and graphics; electronics and telecommunications; healthcare; industrial; safety, security and protection services; transportation; and other businesses. MMM was founded in 1902 and is headquartered in St. Paul, Minnesota.

  • On Feb 8, MMM declared a quarterly dividend of $1.49 per share.
  • This is an increase of 0.68% from the prior dividend of $1.48.
  • Payable Mar 12, to shareholders of record on Feb 18; ex-div: Feb 17.

Primerica, Inc. (PRI)

PRI, together with its subsidiaries, distributes financial products through licensed sales representatives to middle-income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. PRI was founded in 1927 and is headquartered in Duluth, Georgia.

  • On Feb 8, PRI declared a quarterly dividend of 55¢ per share.
  • This is an increase of 17.02% from the prior dividend of 47¢.
  • Payable Mar 14, to shareholders of record on Feb 22; ex-div: Feb 18.

Rexford Industrial Realty, Inc. (REXR)

REXR is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. As of February 2019, REXR owns 179 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.

  • On Feb 9, REXR declared a quarterly dividend of 31.5¢ per share.
  • This is an increase of 31.25% from the prior dividend of 24¢.
  • Payable Apr 15, to shareholders of record on Mar 31; ex-div: Mar 30.

Robert Half International Inc. (RHI)

Founded in 1948 and headquartered in Menlo Park, California, RHI provides staffing and risk consulting services to customers in about 400 locations worldwide. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, Risk Consulting, and Internal Audit Services. RHI markets its staffing services to clients as well as to employment candidates.

  • On Feb 10, RHI declared a quarterly dividend of 43¢ per share.
  • This is an increase of 13.16% from the prior dividend of 38¢.
  • Payable Mar 15, to shareholders of record on Feb 25; ex-div: Feb 24.

Thomson Reuters Corporation (TRI)

Incorporated in 1977, TRI provides intelligent information for businesses and professionals worldwide. The company sells electronic content and services primarily on a subscription basis. TRI also operates Reuters, which provides real-time multimedia news and information services to newspapers, television and cable networks, radio stations, and websites. TRI is headquartered in New York, New York.

  • On Feb 8, TRI declared a quarterly dividend of 44.5¢ per share.
  • This is an increase of 9.88% from the prior dividend of 40.5¢.
  • Payable Mar 15, to shareholders of record on Feb 24; ex-div: Feb 23.

T. Rowe Price Group, Inc. (TROW)

Founded in 1937, TROW is a financial services holding company that provides global investment management services to individual and institutional investors in the sponsored T. Rowe Price mutual funds and other investment portfolios, as well as through variable annuity life insurance plans. TROW is based in Baltimore, Maryland.

  • On Feb 8, TROW declared a quarterly dividend of $1.20 per share.
  • This is an increase of 11.11% from the prior dividend of $1.08.
  • Payable Mar 30, to shareholders of record on Mar 15; ex-div: Mar 14.

Utah Medical Products, Inc. (UTMD)

UTMD develops, manufactures, and distributes medical devices for the healthcare industry in the United States, Europe, and internationally. The company offers fetal monitoring accessories, vacuum-assisted delivery systems, and other labor and delivery tools, as well as many other specialized medical devices. UTMD was founded in 1978 and is headquartered in Midvale, Utah.

  • On Feb 8, UTMD declared a quarterly dividend of 29¢ per share.
  • This is an increase of 1.75% from the prior dividend of 28.5¢.
  • Payable Apr 5, to shareholders of record on Mar 18; ex-div: Mar 17.

Vulcan Materials Company (VMC)

Formerly known as Virginia Holdco, VMC produces and supplies construction aggregates, asphalt mix, and ready-mixed concrete in the United States and the Bahamas. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. VMC was founded in 1909 and is headquartered in Birmingham, Alabama.

  • On Feb 11, VMC declared a quarterly dividend of 40¢ per share.
  • This is an increase of 8.11% from the prior dividend of 37¢.
  • Payable Mar 14, to shareholders of record on Mar 1; ex-div: Feb 28.

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

Following requests from readers, we’ve added this section to our weekly article series. 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

In this section, we highlight 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 a tough task, 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 in the range 19-26. Only three stocks qualify this week!

Key metrics of high-quality candidates

Created by the authors from data by Portfolio Insight

We haven’t highlighted Dividend Champion T. Rowe Price in quite some time, so let’s revisit this investment management company.

I own TROW in my DivGro portfolio.

TROW yields a respectable 3.35% at $143.47 per share and offers an impressive 5-year DGR of 14.9%.

TROW is rated Fine (quality score: 19-22):

DVK quality score breakdown of TROW

Created by the author based on DVK Quality Snapshots

Over the past ten years, TROW has underperformed the SPDR S&P 500 ETF (SPY), an ETF designed to track the 500 companies in the S&P 500 index:

10-year performance of TROW compared with SPY

Portfolio-Insight.com

Over this time frame, TROW delivered total returns of 211% versus SPY’s 286%, a margin of 0.74-to-1.

However, if we extend the period of comparison to the past twenty years, TROW outperformed SPY, with total returns of 1,170% versus SPY’s 486% (a margin of 2.41-to-1).

TROW’s dividend growth history really is impressive:

10-year dividend growth history of TROW

Portfolio-Insight.com

TROW’s dividend growth rate is accelerating, as can be seen by dividing the 5-year DGR by the 10-year DGR: 14.87 ÷ 13.29 = 1.12. A ratio above 1.00 means the DGR is accelerating.

TROW’s earnings are equally impressive, with tremendous growth over the past decade:

10-year earnings growth history of TROW

Portfolio-Insight.com

It appears that earnings growth will be more modest in the next couple of years, so investors should take note. In fact, earnings estimates for FY 2022 are below FY 2021 levels, with a small recovery expected in FY 2023.

At 32%, TROW’s earnings payout ratio is “edging high for asset managers”, according to Simply Safe Dividends:

10-year earnings and free cashflow payout history of TROW

Simply Safe Dividends

TROW’s dividend is considered Very Safe, with a Dividend Safety Score of 94. TROW has room to continue growing its dividend for the foreseeable future.

Next, let’s now consider TROW’s valuation. We could estimate fair value by dividing the stock’s annualized dividend ($4.80) by its 5-year average yield (2.60%). This results in a fair value [FV] estimate of $185. Given TROW’s current price of $143.47, the stock is trading at a discount relative to its past dividend yield history.

For reference, CFRA’s FV is $143, Morningstar’s FV is $195, Finbox.com’s FV is $201, and Simply Wall St’s FV is $299. That’s quite a range! The average of these fair value estimates is $210, also indicating that TROW may be undervalued.

My own FV estimate of TROW is $182, so I believe the stock is trading at a discounted valuation of about 21%.

Here are the most recent Seeking Alpha articles covering TROW:

  1. Buy: T. Rowe Price: Of The 10 Most Beaten-Down Dividend Champs, This Is Our Favorite, by Envision Research
  2. Buy: T. Rowe Price – The Price Is Right, by Justin Kelso
  3. Strong Buy: Buy BlackRock And T. Rowe Price Today And You’ll Thank Me Tomorrow, by Dividend Sensei

Conclusion

TROW is a high-quality DG stock rated Fine. For stocks rated Fine, I require a discounted valuation relative to my fair value estimate to buy shares. Therefore, my Buy Below price for TROW is $182. For conservative investors, look to buy below $164 per share.

Please note that I’m not recommending TROW 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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