Overdue Dividend Increases

In compiling the Dividend Champions list I get to see which companies are nearing the anniversaries of their previous dividend increases. Most of these firms raise their payout about the same time every year, but some companies go longer before boosting their dividends, and this can raise concerns about their streaks of increases.

So which dividends might be in danger? Some companies, such as REITs (Real Estate Investment Trusts) and MLPs (Master Limited Partnerships), have a tendency to pay out much more than earnings per share, simply because of their legal structure, so we can't tell much from seemingly high payout ratios or P/Es in such cases. Some alarming Payout Ratios and/or P/Es, like those at Harsco (HSC) and Meridian Bioscience (VIVO) may suggest great risk, but a look ahead at the estimated earnings per share for this year and next might provide a bit of comfort. After the cut at Hudson City, other overdue banking Contenders might raise questions, despite seemingly good Payout and P/E ratios.

Source: Seeking Alpha

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