Dividend Increases: January 22-28, 2022

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).

In the past week, 42 companies in Dividend Radar announced dividend increases, including six of my DivGro holdings. Note there were no dividend cuts or suspensions announced for Dividend Radar stocks during this period.

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.

Archer-Daniels-Midland Company (ADM)

Founded in 1898 and headquartered in Chicago, Illinois, ADM procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The company also offers futures commission merchant and insurance services. ADM operates through three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.

• On Jan 25, ADM declared a quarterly dividend of 40¢ per share.
• This is an increase of 8.11% from the prior dividend of 37¢.
• Payable Mar 1, to shareholders of record on Feb 8; ex-div: Feb 7.

Applied Industrial Technologies, Inc. (AIT)

Founded in 1923, AIT is an industrial distributor in North America, Australia, and New Zealand, supplying customers in a range of industries with products, including bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, tools, safety products, and general maintenance and mill supply products.:// AIT is headquartered in Cleveland, Ohio.

• On Jan 27, AIT declared a quarterly dividend of 34¢ per share.
• This is an increase of 3.03% from the prior dividend of 33¢.
• Payable Feb 28, to shareholders of record on Feb 15; ex-div: Feb 14.

Arthur J. Gallagher & Co. (AJG)

AJG is an international insurance brokerage and risk management services company headquartered in Itasca, Illinois. Founded in 1927, the company has operations in 31 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

• On Jan 26, AJG declared a quarterly dividend of 51¢ per share.
• This is an increase of 6.25% from the prior dividend of 48¢.
• Payable Mar 18, to shareholders of record on Mar 4; ex-div: Mar 3.

Anthem, Inc. (ANTM)

ANTM operates as a health benefits company in the United States, offering a spectrum of network-based managed care health benefit plans to group, individual, Medicaid, and Medicare markets. It also provides a range of managed care services to self-funded customers. ANTM was founded in 1944 and is headquartered in Indianapolis, Indiana.

• On Jan 26, ANTM declared a quarterly dividend of $1.28 per share.
• This is an increase of 13.27% from the prior dividend of $1.13.
• Payable Mar 25, to shareholders of record on Mar 10; ex-div: Mar 9.

Arrow Financial Corporation (AROW)

AROW is a bank holding company that provides commercial and consumer banking services, as well as financial products and services in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties. AROW was founded in 1851 and is headquartered in Glens Falls, New York.

• On Jan 27, AROW declared a quarterly dividend of 27¢ per share.
• This is an increase of 3.85% from the prior dividend of 26¢.
• Payable Mar 15, to shareholders of record on Mar 1; ex-div: Feb 28.

Booz Allen Hamilton Holding Corporation (BAH)

Founded in 1914 and headquartered in McLean, Virginia, BAH provides management and technology, consulting, and engineering services to governments, corporations, and not-for-profit organizations in the United States and internationally. BAH assists clients in designing cloud architecture solutions, selecting the data suitable for storage in the cloud, and developing analytical solutions to gain insights from large data.

• On Jan 28, BAH declared a quarterly dividend of 43¢ per share.
• This is an increase of 16.22% from the prior dividend of 37¢.
• Payable Mar 2, to shareholders of record on Feb 11; ex-div: Feb 10.

Bankwell Financial Group, Inc. (BWFG)

BWFG operates as the bank holding company for Bankwell Bank that provides a range of banking services to commercial and consumer customers in Connecticut. The company provides various deposit and loan products. The company was formerly known as BNC Financial Group. BWFG was founded in 2002 and is headquartered in New Canaan, Connecticut.

• On Jan 26, BWFG declared a quarterly dividend of 20¢ per share.
• This is an increase of 11.11% from the prior dividend of 18¢.
• Payable Feb 24, to shareholders of record on Feb 14; ex-div: Feb 11.

Cambridge Bancorp (CATC)

Based in Cambridge, Massachusetts, CATC is the parent company of Cambridge Trust Company, a Massachusetts chartered commercial bank with more than $2B in assets and 10 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston. CATC is one of New England’s leaders in private banking and wealth management.

• On Jan 25, CATC declared a quarterly dividend of 64¢ per share.
• This is an increase of 4.92% from the prior dividend of 61¢.
• Payable Feb 24, to shareholders of record on Feb 10; ex-div: Feb 9.

Church & Dwight Co., Inc. (CHD)

CHD develops, manufactures, and markets a range of household, personal care, and specialty products. The company sells its consumer products under a range of brands through a distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, specialty stores, and websites.:// CHD was founded in 1846 and is headquartered in Ewing, New Jersey.

• On Jan 28, CHD declared a quarterly dividend of 26.25¢ per share.
• This is an increase of 3.96% from the prior dividend of 25.25¢.
• Payable Mar 1, to shareholders of record on Feb 15; ex-div: Feb 14.

Cincinnati Financial Corporation (CINF)

Founded in 1950 and headquartered in Fairfield, Ohio, CINF is an insurance holding company engaged in property-casualty insurance. The company markets its products through independent insurance agencies in more than 40 states in the USA. CINF also offers life and disability income insurance, fixed annuities, surplus lines property, and casualty insurance.

• On Jan 28, CINF declared a quarterly dividend of 69¢ per share.
• This is an increase of 9.52% from the prior dividend of 63¢.
• Payable Apr 15, to shareholders of record on Mar 18; ex-div: Mar 17.

Comcast Corporation (CMCSA)

Founded in 1963 and headquartered in Philadelphia, Pennsylvania, CMCSA is a global media and technology company. The company operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Sky segments. CMCSA delivers broadband, wireless, and video connectivity; creates, distributes, and streams entertainment, sports, and news; and operates theme parks and resorts.

• On Jan 27, CMCSA declared a quarterly dividend of 27¢ per share.
• This is an increase of 8.00% from the prior dividend of 25¢.
• Payable Apr 27, to shareholders of record on Apr 6; ex-div: Apr 5.

CMS Energy Corporation (CMS)

Founded in 1987 and based in Jackson, Michigan, CMS is an energy company engaged in independent power production and ownership of power generations facilities fueled by natural gas and biomass. The company generates, purchases, stores, transmits, distributes, and sells electricity and natural gas. Through EnerBank USA, CMS provides unsecured consumer installment loans for financing home improvements.

• On Jan 27, CMS declared a quarterly dividend of 46¢ per share.
• This is an increase of 6.98% from the prior dividend of 43¢.
• Payable Feb 28, to shareholders of record on Feb 11; ex-div: Feb 10.

Canadian National Railway Company (CNI)

CNI was founded in 1922 and is headquartered in Montreal, Canada. The company operates the largest railroad in Canada and the only coast-to-coast railroad in North America. CNI offers transportation services that include rail, intermodal container, and trucking services. It also warehousing and distribution, logistics parks, freight forwarding, customs brokerage services, industrial development, and marine services.

• On Jan 25, CNI declared a quarterly dividend of CAD 73.25¢ per share.
• This is an increase of 19.11% from the prior dividend of CAD 61.5¢.
• Payable Mar 31, to shareholders of record on Mar 10; ex-div: Mar 9.

Chevron Corporation (CVX)

Founded in 1984 and based in San Ramon, California, CVX is a multinational energy corporation involved in all aspects of the oil and gas industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. CVX is the fifth-largest integrated energy company with operations in about 180 countries.

• On Jan 26, CVX declared a quarterly dividend of $1.42 per share.
• This is an increase of 5.97% from the prior dividend of $1.34.
• Payable Mar 10, to shareholders of record on Feb 16; ex-div: Feb 15.

California Water Service Group (CWT)

CWT is a holding company that provides water utility and other related services in California, Washington, New Mexico, and Hawaii. The company produces, purchases, stores, treats, tests, distributes and sells water for domestic, industrial, public, and irrigation uses, as well as for fire protection. CWT was founded in 1926 and is headquartered in San Jose, California.

• On Jan 26, CWT declared a quarterly dividend of 25¢ per share.
• This is an increase of 8.70% from the prior dividend of 23¢.
• Payable Feb 18, to shareholders of record on Feb 7; ex-div: Feb 4.

Franklin Electric Co., Inc. (FELE)

FELE designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, and Distribution. The company sells its products to specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies. FELE was founded in 1944 and is headquartered in Fort Wayne, Indiana.

• On Jan 24, FELE declared a quarterly dividend of 19.5¢ per share.
• This is an increase of 11.43% from the prior dividend of 17.5¢.
• Payable Feb 17, to shareholders of record on Feb 3; ex-div: Feb 2.

Franco-Nevada Corporation (FNV)

FNV operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, Australia, and Africa. It also holds interests in silver and platinum group metals; and oil, gas, and natural gas liquids. FNV was incorporated in 2007 and is headquartered in Toronto, Canada.

• On Jan 27, FNV declared a quarterly dividend of 32¢ per share.
• This is an increase of 6.67% from the prior dividend of 30¢.
• Payable Mar 31, to shareholders of record on Mar 17; ex-div: Mar 16.

GATX Corporation (GATX)

GATX leases, operates, manages, and markets assets in the rail and marine markets in North America and internationally. The company operates through four segments: Rail North America, Rail International, American Steamship Company, and Portfolio Management. GATX was founded in 1898 and headquartered in Chicago, Illinois.

• On Jan 28, GATX declared a quarterly dividend of 52¢ per share.
• This is an increase of 4.00% from the prior dividend of 50¢.
• Payable Mar 31, to shareholders of record on Feb 25; ex-div: Feb 24.

Home Bancshares, Inc. (Conway, AR) (HOMB)

HOMB operates as the bank holding company for Centennial Bank, which provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. The company operates in Arkansas, Florida, Alabama, and New York City. HOMB was founded in 1998 and is headquartered in Conway, Arkansas.

• On Jan 26, HOMB declared a quarterly dividend of 16.5¢ per share.
• This is an increase of 17.86% from the prior dividend of 14¢.
• Payable Mar 9, to shareholders of record on Feb 16; ex-div: Feb 15.

Independent Bank Corporation (IBCP)

IBCP operates as the holding company for Independent Bank, providing various banking services to individuals and businesses in Michigan. The company offers various deposit and loan products, as well as title insurance, investment, and insurance brokerage services. IBCP was founded in 1864 and is based in Grand Rapids, Michigan.

• On Jan 24, IBCP declared a quarterly dividend of 22¢ per share.
• This is an increase of 4.76% from the prior dividend of 21¢.
• Payable Feb 15, to shareholders of record on Feb 4; ex-div: Feb 3.

Independent Bank Group, Inc. (IBTX)

IBTX operates as the bank holding company for Independent Bank, which provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. The company offers various deposit and loan products, as well as other financial services. IBTX was founded in 2002 and is headquartered in McKinney, Texas.

• On Jan 26, IBTX declared a quarterly dividend of 38¢ per share.
• This is an increase of 5.56% from the prior dividend of 36¢.
• Payable Feb 17, to shareholders of record on Feb 10; ex-div: Feb 9.

Intel Corporation (INTC)

INTC designs, manufactures, and sells computer, networking, and communications platforms worldwide. The company operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Intel Security Group, Programmable Solutions Group, and All Other segments. INTC was founded in 1968 and is based in Santa Clara, California.

• On Jan 26, INTC declared a quarterly dividend of 36.5¢ per share.
• This is an increase of 5.19% from the prior dividend of 34.7¢.
• Payable Mar 1, to shareholders of record on Feb 7; ex-div: Feb 4.

Kimberly-Clark Corporation (KMB)

Using advanced technologies in natural and synthetic fibers, non-wovens, and absorbency, KMB manufactures a range of personal care, consumer tissue, and professional products. Brands include Huggies, Kleenex, Scott, and Cottonelle. The company sells its products directly to retail outlets and through e-commerce. KMB was founded in 1872 and is headquartered in Dallas, Texas.

• On Jan 26, KMB declared a quarterly dividend of $1.16 per share.
• This is an increase of 1.75% from the prior dividend of $1.14.
• Payable Apr 4, to shareholders of record on Mar 4; ex-div: Mar 3.

MarketAxess Holdings Inc. (MKTX)

MKTX, together with its subsidiaries, operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments, offering institutional investor and broker-dealer firms access to global liquidity. MKTX was founded in 2000 and is headquartered in New York, New York.

• On Jan 26, MKTX declared a quarterly dividend of 70¢ per share.
• This is an increase of 6.06% from the prior dividend of 66¢.
• Payable Feb 23, to shareholders of record on Feb 9; ex-div: Feb 8.

NextEra Energy Partners, LP (NEP)

NEP acquires, owns, and operates contracted clean energy projects in the United States and Canada. The company owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as seven contracted natural gas pipeline assets. NEP was founded in 2014 and is based in Juno Beach, Florida.

• On Jan 25, NEP declared a quarterly distribution of 70.75¢ per unit.
• This is an increase of 3.28% from the prior distribution of 68.5¢.
• Payable Feb 14, to unitholders of record on Feb 4; ex-div: Feb 3.

NiSource Inc. (NI)

Founded in 1912 and headquartered in Merrillville, Indiana, NI is an energy holding company that provides natural gas, electricity, and other products and to customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts. NI was formerly known as NIPSCO Industries, Inc, and changed its name to NiSource Inc in April 1999.

• On Jan 26, NI declared a quarterly dividend of 23.5¢ per share.
• This is an increase of 6.82% from the prior dividend of 22¢.
• Payable Feb 18, to shareholders of record on Feb 8; ex-div: Feb 7.

Norfolk Southern Corporation (NSC)

NSC, together with its subsidiaries, provides rail transportation of raw materials, intermediate products, and finished goods in the United States. The company also transports overseas freight through various Atlantic and Gulf Coast ports and provides commuter passenger services. NSC was incorporated in 1980 and is based in Norfolk, Virginia.

• On Jan 25, NSC declared a quarterly dividend of $1.24 per share.
• This is an increase of 13.76% from the prior dividend of $1.09.
• Payable Feb 21, to shareholders of record on Feb 4; ex-div: Feb 3.

Nexstar Media Group, Inc. (NXST)

Founded in 1996 and headquartered in Irving, Texas, NXST operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets. NXST offers free over-the-air programming to television viewing audiences.

• On Jan 28, NXST declared a quarterly dividend of 90¢ per share.
• This is an increase of 28.57% from the prior dividend of 70¢.
• Payable Feb 28, to shareholders of record on Feb 11; ex-div: Feb 10.

Oak Valley Bancorp (OVLY)

OVLY operates as the bank holding company for Oak Valley Community Bank, which provides banking products and services to individuals and small and medium-sized businesses in Oakdale, California, and surrounding areas. The company provides various deposits and loan products, and other financial services. OVLY was founded in 1990 and is headquartered in Oakdale, California.

• On Jan 24, OVLY declared a semi-annual dividend of 15¢ per share.
• This is an increase of -31.35% from the prior dividend of 21.85¢.
• Payable Feb 11, to shareholders of record on Jan 31; ex-div: Jan 28.

Premier Financial Corp. (PFC)

PFC operates as the holding company for Premier Bank and First Insurance Group, providing community banking and financial services. The company offers various deposit, loan, and insurance products. It operates in Ohio, Michigan, Indiana, and Pennsylvania. PFC was incorporated in 1995 and is headquartered in Defiance, Ohio.

• On Jan 25, PFC declared a quarterly dividend of 30¢ per share.
• This is an increase of 7.14% from the prior dividend of 28¢.
• Payable Feb 18, to shareholders of record on Feb 11; ex-div: Feb 10.

Peoples Financial Services Corp. (PFIS)

PFIS operates as the bank holding company for Peoples Security Bank and Trust Company, which provides various commercial and retail banking services in Pennsylvania and New York. The company offers various deposit, loan, and insurance products, as well as investment management services. PFIS was founded in 1905 and is headquartered in Scranton, Pennsylvania.

• On Jan 28, PFIS declared a quarterly dividend of 39¢ per share.
• This is an increase of 2.63% from the prior dividend of 38¢.
• Payable Mar 15, to shareholders of record on Feb 28; ex-div: Feb 25.

Polaris Inc. (PII)

PII designs, engineers, manufactures, and markets off-road vehicles, snowmobiles, motorcycles, and small vehicles. Products are sold through dealers and distributors located in the United States, Canada, Europe, Australia, and Mexico. The company also produces and supplies replacement parts for its product lines. PII was founded in 1954 and is headquartered in Medina, Minnesota.

• On Jan 27, PII declared a quarterly dividend of 64¢ per share.
• This is an increase of 1.59% from the prior dividend of 63¢.
• Payable Mar 15, to shareholders of record on Mar 1; ex-div: Feb 28.

Republic Bancorp, Inc. (RBCAA)

RBCAA is a financial holding company that provides banking products and services in Kentucky, Florida, Indiana, Tennessee, and Ohio. It operates through five segments: Traditional Banking, Warehouse Lending, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions. RBCAA was incorporated in 1982 and is headquartered in Louisville, Kentucky.

• On Jan 26, RBCAA declared a quarterly dividend of 34.1¢ per share.
• This is an increase of 10.71% from the prior dividend of 30.8¢.
• Payable Apr 15, to shareholders of record on Mar 18; ex-div: Mar 17.

Sandy Spring Bancorp, Inc. (SASR)

SASR operates as the bank holding company for Sandy Spring Bank that provides commercial banking services to individuals and businesses in central Maryland, northern Virginia, and Washington, DC markets. The company operates through three segments: Community Banking, Insurance, and Investment Management. SASR was founded in 1868 and is headquartered in Olney, Maryland.

• On Jan 27, SASR declared a quarterly dividend of 34¢ per share.
• This is an increase of 6.25% from the prior dividend of 32¢.
• Payable Feb 28, to shareholders of record on Feb 18; ex-div: Feb 17.

Simmons First National Corporation (SFNC)

Founded in 1903 and headquartered in Pine Bluff, Arkansas, SFNC operates as a bank holding company for Simmons First National Bank. The company offers consumer, real estate, and commercial loans; checking, savings, and time deposits; and personal and corporate trust services, credit cards, investment management, and various insurance products. SFNC operates through approximately 150 branch offices.

• On Jan 27, SFNC declared a quarterly dividend of 19¢ per share.
• This is an increase of 5.56% from the prior dividend of 18¢.
• Payable Apr 4, to shareholders of record on Mar 15; ex-div: Mar 14.

SJW Group (SJW)

SJW provides water utility services in the United States. The company produces, purchases, stores, purifies, distributes, and sells water. Additionally, the company provides non-tariffed services, including water system operations, maintenance agreements, and antenna leases. SJW was founded in 1866 and is headquartered in San Jose, California.

• On Jan 27, SJW declared a quarterly dividend of 36¢ per share.
• This is an increase of 5.88% from the prior dividend of 34¢.
• Payable Mar 1, to shareholders of record on Feb 7; ex-div: Feb 4.

Tractor Supply Company (TSCO)

Founded in 1938 and headquartered in Brentwood, Tennessee, TSCO operates rural lifestyle retail stores in the United States. The company provides equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment. TSCO also provides hardware, truck, towing, tools, and seasonal products as well as clothing and footwear.

• On Jan 27, TSCO declared a quarterly dividend of 92¢ per share.
• This is an increase of 76.92% from the prior dividend of 52¢.
• Payable Mar 8, to shareholders of record on Feb 21; ex-div: Feb 18.

Unitil Corporation (UTL)

Founded in 1984 and headquartered in Hampton, New Hampshire, UTL is a public utility holding company that engages in the distribution of electricity and natural gas. UTL distributes electricity in New Hampshire and Massachusetts, and it distributes natural gas in New Hampshire, Maine, and Massachusetts.

• On Jan 26, UTL declared a quarterly dividend of 39¢ per share.
• This is an increase of 2.63% from the prior dividend of 38¢.
• Payable Feb 25, to shareholders of record on Feb 11; ex-div: Feb 10.

Westamerica Bancorporation (WABC)

WABC is a bank holding company for Westamerica Bank, which serves individual and commercial customers in Northern and Central California. The company offers various deposit products and a comprehensive loan portfolio, including commercial and residential real estate and construction loans. WABC was founded in 1972 and is headquartered in San Rafael, California.

• On Jan 27, WABC declared a quarterly dividend of 42¢ per share.
• This is an increase of 2.44% from the prior dividend of 41¢.
• Payable Feb 18, to shareholders of record on Feb 7; ex-div: Feb 4.

Washington Federal, Inc. (WAFD)

WAFD is a non-diversified unitary savings and loan holding company. Its principal subsidiary is Washington Federal, National Association. The company attracts savings deposits from the general public and invests these funds in loans secured by first mortgage liens on single-family dwellings. WAFD was founded in 1917 and is headquartered in Seattle, Washington.

• On Jan 25, WAFD declared a quarterly dividend of 24¢ per share.
• This is an increase of 4.35% from the prior dividend of 23¢.
• Payable Feb 18, to shareholders of record on Feb 4; ex-div: Feb 3.

West Bancorporation, Inc. (WTBA)

WTBA operates as the financial holding company for West Bank, providing community banking and trust services to individuals and small- to medium-sized businesses. The company offers various deposit and loan products as well as trust services. WTBA was founded in 1893 and is based in West Des Moines, Iowa.

• On Jan 27, WTBA declared a quarterly dividend of 25¢ per share.
• This is an increase of 4.17% from the prior dividend of 24¢.
• Payable Feb 23, to shareholders of record on Feb 9; ex-div: Feb 8.

Wintrust Financial Corporation (WTFC)

WTFC operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The company provides various deposit, loan, and insurance products, as well as specialty finance services. WTFC was founded in 1992 and is headquartered in Rosemont, Illinois.

• On Jan 27, WTFC declared a quarterly dividend of 34¢ per share.
• This is an increase of 9.68% from the prior dividend of 31¢.
• Payable Feb 24, to shareholders of record on Feb 10; ex-div: Feb 9.

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. Thirteen stocks qualify this week!

We haven’t focused on Dividend Champion Archer-Daniels-Midland before, so let’s consider this Consumer Staples sector stock.

I own ADM in my DivGro portfolio.

ADM yields 2.16% at $74.21 per share and offers a modest 5-year DGR of 4.3%.

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

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

Over this time frame, ADM delivered total returns of 237% versus SPY’s 302%, a margin of 0.78-to-1.

However, if we extend the period of comparison to the past twenty years, ADM outperformed SPY, with total returns of 780% versus SPY’s 497% (a margin of 1.57-to-1).

ADM’s dividend growth is decelerating, as can be seen by dividing the 5-year DGR by the 10-year DGR: 4.28 ÷ 8.49 = 0.50. A ratio below 1.00 means the DGR is decelerating.

While ADM’s earnings are growing over time, the growth is somewhat inconsistent with three down years in the past decade. Furthermore, earnings estimates for FY 2022 and FY 2023 indicate that practically no earnings growth is expected.

At 28%, ADM’s earnings payout ratio is “low for consumer staples”, according to Simply Safe Dividends:

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

Next, let’s now consider ADM’s valuation. We could estimate fair value by dividing the stock’s annualized dividend ($1.60) by its 5-year average yield (3.01%). This results in a fair value [FV] estimate of $53. Given ADM’s current price of $74.21, the stock is trading at a premium relative to its past dividend yield history.

For reference, Morningstar’s FV is $55, CFRA’s FV is $94, Finbox.com’s FV is $95, and Simply Wall St’s FV is $131. That’s quite a range! The average of these fair value estimates is $94, indicating that ADM may be undervalued.

My own FV estimate of ADM is $69, so I believe the stock is trading at a premium valuation of about 8%.

Here are the most recent Seeking Alpha articles covering ADM, all rated Hold:

1. Archer-Daniels-Midland: Update On The Soy Business, by Bill Phung
2. Why Little Upside Remains In Archer-Daniels-Midland, by Wolf Report
3. Archer-Daniels-Midland: Dividend Trends By The Numbers, by Individual Trader

Conclusion

ADM 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 ADM is $69. For conservative investors, look to buy below $62 per share.

Please note that I’m not recommending ADM 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!