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In compiling the Dividend Champions list (found here), I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again.

More Good News Ahead

After a noticeable pick-up in the number of companies that typically increase their dividends in the last part of the year, we should see a modest start to 2013, with only a small number expected in January, which coincides with the "forward look" of about 11 weeks for this article.

I have modified the Expected Increase series to reflect a more SA-friendly format by separating the Champions, Contenders, and Challengers into distinct groupings, so please look for the other articles, which I hope will be published about the same time.

Based on last year's announcements, I'm expecting the following companies to announce dividend increases between now and the anniversary of the Ex-Dividend Date of their previous increase:

Dividend Challengers (5-9 years):

Company

Ticker

No.

10/31

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Hanover Insurance Group

(THG)

7

36.11

3.32

9.09

11/25/11

1.20

J&J Snack Foods Corp.

(JJSF)

8

57.27

0.91

10.64

12/13/11

0.52

Hillenbrand Inc.

(HI)

5

20.47

3.76

1.32

12/14/11

0.77

PennantPark Investment Cp

(PNNT)

6

11.00

10.18

3.70

12/21/11

1.12

Edison International

(EIX)

9

46.92

2.77

1.56

12/28/11

1.30

Ensign Group Inc.

(ENSG)

5

29.16

0.82

9.09

12/28/11

0.24

OGE Energy Corp.

(OGE)

6

57.58

2.73

4.67

1/6/12

1.57

RGC Resources Inc.

(RGCO)

9

17.90

3.91

2.94

1/12/12

0.70

Robbins & Myers Inc.

(RBN)

6

59.28

0.34

11.11

1/18/12

0.20

CVS Caremark

(CVS)

9

46.40

1.40

30.00

1/19/12

0.65

Williams-Sonoma Inc.

(WSM)

7

46.23

1.90

29.41

1/25/12

0.88

Alliant Energy Corp.

(LNT)

9

44.70

4.03

5.88

1/27/12

1.80

MR=Most Recent

Note that Robbins & Myers has agreed to be acquired, so it may not increase its dividend again. Also note that RGC Resources will pay a $1 special dividend on December 17. Not all of the above companies will meet the strict standards of every investor, but some may be appropriate for portfolio diversification. Potential investors should do more research before committing funds.

Every Picture Tells a Story

As a bonus, I'm inserting one of Chuck Carnevale's F.A.S.T. Graphs below, highlighting one of the companies listed above. When the stock's price line has moved into the green area, it indicates that the stock is undervalued in relation to its earnings. I'm attaching the chart below.

(click to enlarge)

Source: Dividend Challengers: 12 Increases Expected By The End Of January