Nike, Merck Among 13 Companies To Announce Annual Dividend Increases In H2 November


Nike flagship store at Bangkok , Thailand.

With one of the best known brands in the world, Nike will increase its dividend growth streak to 23 years with its next boost in the second half of November.

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Company # Years Prediction % / Annual Rate Actual % / Annual Rate Forward Yield
Automatic Data Processing, Inc. (ADP) 49

13.0% – 16.0%

$5.65 – $5.80

12.0%

$5.60

2.45%
Assurant, Inc. (AIZ) 20

4.3% – 7.1%

$2.92 – $3.00

2.9%

$2.88

1.77%
Atmos Energy Corporation (ATO) 40

6.8% – 8.1%

$3.16 – $3.20

8.8%

$3.22

2.89%
Becton, Dickinson and Company (BDX) 52

4.9% – 6.6%

$3.82 – $3.88

4.4%

$3.80

1.62%
Cencora, Inc. (COR) 20

4.1% – 7.2%

$2.02 – $2.08

5.2%

$2.04

1.03%
Emerson Electric Co. (EMR) 67

1.0% – 1.9%

$2.10 – $2.12

1.0%

$2.10

2.43%
Evergy, Inc. (EVRG) 21

3.7% – 5.3%

$2.54 – $2.58

4.9%

$2.57

5.20%
Huntington Ingalls Industries, Inc. (HII) 12

4.0% – 5.2%

$5.16 – $5.22

4.8%

$5.20

2.26%
HP Inc. (HPQ) 15

2.9% – 4.8%

$1.08 – $1.10

5.0%

$1.1024

3.99%
Lancaster Colony Corporation (LANC) 62

5.9% – 8.2%

$3.60 – $3.68

5.9%

$3.60

2.15%
Nelnet, Inc. (NNI) 10

5.8% – 7.7%

$1.10 – $1.12

7.7%

$1.12

1.31%
Roper Technologies, Inc. (ROP) 31

13.6% – 15.8%

$3.10 – $3.16

9.9%

$3.00

0.58%
Snap-on Incorporated (SNA) 15

13.5% – 14.8%

$7.36 – $7.44

14.8%

$7.44

2.76%

Company # Years Industry Prediction (%) New Annual Rate
Agilent Technologies, Inc. (A) 12 Healthcare – Diagnostics & Research 11.1% – 13.3% $1.00 – $1.02
The healthcare diagnostics company increased its payout last year by 7%, well below its 5-year average growth rate of 16%. Will Agilent return to its usual dividend growth rate this year? Well, sales were up 8% in 2022, which drove EPS growth of 20%. But the company is expecting EPS growth to slow to 4% in 2023. I expect that the company will return to 10%+ dividend growth, but it won’t be 16% – just an increase in the low teens. Predicted Forward Yield: 0.92 – 0.94%
American Equity Investment Life Holding Company (AEL) 19 Financial – Insurance 5.6% – 11.1% $0.38 – $0.40
American Equity provides annuities and other retirement products to its customers. After falling 6% in 2022, adjusted EPS has more than doubled year-over-year in the first 9 months of 2023. In most cases, I would expect a company that is doubling earnings to announce a very nice dividend increase but American Equity has boosted its dividend by 2 cents in each of the last 9 years. I expect the company will continue the pattern, with the chance of a slightly larger boost. Predicted Forward Yield: 0.71 – 0.74%
Brown-Forman Corporation (BF.B) 39 Beverages – Wineries & Distilleries 4.0% – 7.0% $0.85 – $0.882
Distilled spirits company Brown-Forman owns many brands, including the well-known Jack Daniels whiskey. Although the company is expecting sales and operating income growth in the mid-single digits in fiscal 2024 – which started on May 1st – EPS fell by 6% in 2023. So, although Brown-Forman’s dividend boost last year was more than 9%, investors will see a boost closer to the company’s long-term growth rate in the mid-single digits. Predicted Forward Yield: 1.50 – 1.55%
CubeSmart (CUBE) 14 REIT – Industrial 13.3% – 16.3% $2.22 – $2.28
The self-storage REIT continues to expand through acquisitions and new developments. The company also runs a property management service that it provides to third parties, which is also taking on new customers. CubeSmart has regularly boosted its payout by double-digit percentages and, although the company is expecting growth to slow to 6% in 2023, last year the company posted 20% growth. This will set up investors for another increase in the mid-teens. Predicted Forward Yield: 6.09 – 6.26%
Hormel Foods Corporation (HRL) 57 Consumer – Packaged Foods 3.6% – 5.4% $1.14 – $1.16
Food company Hormel has done a good job growing its sales and earnings since 2020, but is expecting a slowdown in the 4th quarter this year which will cause adjusted EPS to fall 10% from 2022. Dividend growth had been slowing, falling to 6% last year from an average of 13% over the last decade. The falling earnings will cause dividend growth to slow even further. Predicted Forward Yield: 3.51 – 3.57%
Matthews International Corporation (MATW) 28 Industrials – Conglomerates 2.2% – 4.3% $0.94 – $0.96
Matthews International provides memorialization products and branding products. The company took an earnings hit in 2022 due to the costs of converting its employees away from its pension plan, along with finishing the writing down of assets due to the Russia-Ukraine war. Free cash flow is coming back in 2023 and is expected to return to 2021 levels. Given this, investors can expect another year – the company’s 6th consecutive one – of an annual boost of 2 or 4 cents. Predicted Forward Yield: 2.52 – 2.57%
McCormick & Company, Incorporated (MKC) 24 Consumer – Packaged Foods 2.6% – 6.4% $1.60 – $1.66
Flavor and spices company McCormick went through some rocky times last year, as issues with its supply chains, Covid in China, and the Russia – Ukraine war resulted in a 17% drop in EPS. These issues seem to be in the past and the company is expecting EPS to grow 5% in 2023. While this won’t be enough to return the company back to the traditional dividend growth rate of 9%, it should be enough for another 5% increase like last year. Predicted Forward Yield: 2.46 – 2.56%
Motorola Solutions, Inc. (MSI) 12 Technology – Communications Equipment 11.4% – 13.6% $3.92 – $4.00
Motorola Solutions provides support for radio communications, video, and command center development for security applications. The company grew EPS by 13% in 2022 and is looking at another 12% – 13% growth in 2023. This EPS growth supports Motorola Solutions’ compounded dividend growth rate of 13%; investors can look for another year of dividend growth in the low-double digit percentages. Predicted Forward Yield: 1.26 – 1.29%
Royal Gold, Inc. (RGLD) 22 Materials – Gold 2.7% – 5.3% $1.54 – $1.58
With lower precious metals production out of Royal Gold’s properties, earnings are falling. EPS was down 13% in 2022 and another 4% in the first 9 months of 2023. So, despite a nice 7% increase last year, investors likely won’t see anything higher than a 5% hike this year. Predicted Forward Yield: 1.44 – 1.47%
Spire Inc. (SR) 20 Utilities – Gas 4.2% – 5.6% $3.00 – $3.04
Spire is a natural gas company serving customers in Alabama, Mississippi and Missouri. The company has a consistent record of 5 – 6% dividend growth. In fact, it maintained this pattern in the face of a 20% drop in EPS last year. With earnings expected to rebound by 6% when the company reports full year financials in mid-November, investors can expect the pattern to continue. Predicted Forward Yield: 5.27 – 5.34%
The York Water Company (YORW) 26 Utilities – Water 3.7% – 4.9% $0.84 – $0.85
The Pennsylvania-based water utility got approval for a rate increase earlier this year, which led to an 18% jump in EPS for the first 9 months of 2023, on top of a 7.7% increase in 2022. Share count has increased, however, and the company has a decent debt load, meaning that York Water is likely to hold to its longer-term pattern of 4% dividend growth. Predicted Forward Yield: 2.30 – 2.33%



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