Verizon Among 15 Companies To Announce Annual Dividend Increases In August

Daily Life In New York City Amid Coronavirus Outbreak

Despite having to continually invest in new technologies, Verizon should announce its 18th year of dividend growth in late August.

Cindy Ord

This is the latest in my series of articles where I provide predictions of annual dividend increases for

Company # Yrs Industry Prediction (%) New Annual Rate
American Financial Group, Inc. (AFG) 17 Insurance – Property & Casualty 9.5% – 11.1% $2.76 – $2.80
The Cincinnati-based insurer announced a special dividend of $2 a share in May, following up $10 per share in special dividends in 2022. Nevertheless, with another 9% EPS growth expected in 2023, investors can look forward to a boost of around 10%. Predicted Forward Yield: 2.26% – 2.29%
BancFirst Corporation (BANF) 30 Banks – Regional 10.0% – 12.5% $1.76 – $1.80
The Fed’s interest increases allowed the regional bank to grow interest income, resulting in 14% EPS growth in 2022 followed by another 60% increase in the first quarter of 2023. BancFirst is poised to announce another 10%+ dividend increase after last year’s 11% increase. Predicted Forward Yield: 1.76% – 1.80%
Badger Meter, Inc. (BMI) 31 Scientific & Technical Instruments 11.1% – 13.3% $1.00 – $1.02
The water filtration company routinely boosts its dividend by double digits, having compounded its payout by 10% over the last decade. The debt-free company is growing organically and through acquisitions, and increased EPS by 9% in 2022, enough for another good increase this year. Predicted Forward Yield: 0.62% – 0.63%
Broadridge Financial Solutions, Inc. (BR) 16 Information Technology Services 12.4% – 14.5% $3.26 – $3.32
The financial technology company should reward investors with a good increase again this year. Adjusted EPS were up 14% in fiscal 2022 and the company is guiding to another 7 – 11% adjusted EPS growth in fiscal 2023. The only wrench in the machinery is that in the first three quarters of the fiscal year Broadridge posted flat adjusted EPS year-over-year. Still, I think we’ll see an increase along the lines of last year’s 13% boost. Predicted Forward Yield: 1.94% – 1.98%
Cboe Global Markets, Inc. (CBOE) 13 Financial Data & Stock Exchanges 8.0% – 10.0% $2.16 – $2.20
The creator of equity options and futures continues to make investments in future growth, resulting in higher current expenses and lower earnings. Despite a 13% dividend growth rate over the last decade, the lower EPS forced CBOE to lower last year’s dividend growth to only 4%. The company posted year-over-year EPS growth of 60% in the first quarter of fiscal year 2023, showing that earnings are returning to normal but I think it will be another year before dividend growth returns to the low teens. Predicted Forward Yield: 1.54% – 1.57%
Carlisle Companies Incorporated (CSL) 47 Building Products & Equipment 17.3% – 20.0% $3.52 – $3.60
2022 was a year of spiking revenues and earnings for the diversified manufacturer, with the former up 37% and the latter more than doubling year-over-year. Normally, this would mean that investors should expect another dividend increase like last year’s 39% boost, but it looks like the spike was temporary. 2023’s first quarter adjusted EPS are down 40% year-over-year. Even if this plays out over the entire year, it still positions Carlisle for a good double-digit dividend increase this year. Predicted Forward Yield: 1.27% – 1.30%
Dover Corporation (DOV) 68 Specialty Industrial Machinery 5.0% – 7.9% $2.12 – $2.18
Earnings growth had slowed at the industrial manufacturer over the last several years, reflected in the company’s 5-year dividend growth rate of below 2%. However, this year earnings jumped, which means investors can expect the three year streak of 2-cent annual dividend growth to be broken. Adjusted EPS were up 11% in 2022 which should power good mid-single digit dividend growth at Dover. Predicted Forward Yield: 1.46% – 1.50%
Federal Realty Investment Trust (FRT) 56 REIT – Retail 1.9% – 2.8% $4.40 – $4.44
This retail REIT is focused on properties in coastal cities. Things have been tough on Federal Realty with dividend growth falling over the last several years. However, business seems to be improving as funds from operations (FFO) were up more than 13% in 2022 and another 6% year-over-year in the first quarter of 2023. Federal Realty’s guidance for full year FFO growth ranges from between 1% and 4%. Investors can expect to see dividend growth accelerate from last year’s 1% boost but only into the low single digits. Predicted Forward Yield: 4.36% – 4.40%
International Flavors & Fragrances Inc. (IFF) 21 Specialty Chemicals 0.6% – 2.5% $3.26 – $3.32
IFF’s sales may be growing but earnings started to slow in 2022 and the pattern is continuing into 2023. 2022 adjusted EPS were down 4% compared with 2021; first quarter EPS were down nearly 50% year-over-year. The earnings drop was reflected in last year’s 2.5% dividend boost, well below the average growth rate of 9% over the last decade. With the accelerating drop in 2023, another 2.5% increase is the best that investors can expect. Predicted Forward Yield: 3.82% – 3.89%
Nordson Corporation (NDSN) 60 Specialty Industrial Machinery 15.4% – 18.5% $3.00 – $3.08
Nordson develops, designs and manufactures fluid dispensing equipment used in various industries. The company continues to knock it out of the park, boosting sales by 10% and adjusted EPS by 22% in 2022. The company is guiding to slightly lower earnings in 2023, but the company’s current payout ratio of 27% leaves plenty of room for an increase in the mid-to-high teens. Predicted Forward Yield: 1.20% – 1.23%
Westlake Corporation (WLK) 19 Specialty Chemicals 6.4% – 10.6% $1.52 – $1.58
Like so many companies, the specialty chemical company saw a good 2022 but is starting to see lower earnings at the beginning of 2023. The slowdown in the U. S. housing market is hitting Westlake’s Housing and Infrastructure Products business segment, resulting in a 17% drop in revenues and a nearly 50% drop in EPS year-over-year. While the 11% jump in EPS in 2022 bodes well for a 20th year of dividend growth from Westlake, it’ll be far less than last year’s 20% boost. Predicted Forward Yield: 1.11% – 1.15%
Essential Utilities, Inc. (WTRG) 32 Utilities – Regulated Water 6.3% – 8.0% $1.22 – $1.24
Essential Utilities consistently and slowly acquires smaller water and natural gas utilities serving local municipalities, which has allowed to consistently grow over time. In addition to three water systems it acquired in 2022, the company has purchase agreements to another nine systems pending completion. Essential Utilities provided guidance of EPS growth in the 5 – 7% range through 2025 and is projecting 5 – 6% EPS growth next year, which will support another increase in the 7% range, consistent with its long-term dividend growth rate. Predicted Forward Yield: 2.90% – 2.94%

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *