Ten Dividend Increases

Dividend investing in the classic implementation focuses on identifying solid companies with a record of growing their dividends each year; and an expectation that it will continue into the future. The focus is not solely on yield but a combination of yield and dividend growth. Often it is the lower yield, higher growth, security that will provide the best return over time.

Here are several stocks living up to shareholders' expectations by raising their cash dividends:

• NIKE (NKE) Boosts Dividend by 8.7% to $0.25/share (2.07%)
• Donaldson (DCI) Boosts Quarterly Dividend 5% to $0.115/share (1.53%)
• South Jersey Industries (SJI) Raises Dividend 10% to $0.2975/share (3.11%)
• United Bankshares (UBSI) Increases Dividend 3% to $0.29/share (3.41%)
• Hormel Foods (HRL) Raises Annual Dividend 2.6% to $0.76/share (2.89%)
• Becton, Dickinson and Company (BDX) Boosts Quarterly Dividend by 15.8% to $0.33/share (2.08%)
• RGC Resources (RGCO) Increases Dividend by 10% to $0.32/share (4.97%)
• The York Water Company's (YORW) Boosts Quarterly Dividend by 4.1% to $0.126/share (4.48%)
• McCormick & Company (MKC) Boosts Dividend 9% to $0.24/share (3.23%)
• Landauer (LDR) Increases Dividend 5% to $0.525/share (3.47%)

After running these companies through my D4L-PreScreen.xls model, DCI and BDX, both Dividend Achievers, had NPV of MMA Differentials close enough to earn a more complete evaluation. HRL, MKC and LDR had positive NPV of MMA Differentials, but below the level required level for a more detailed evaluation. None of the others warranted additional consideration.

Disclosure: No position in the aforementioned stocks.

Comments

[AEG:]

How do you determine the "increase"? Do you consider the dividend to increase if the amount increased compared to the previous period or the comparable period?

2008 Dec 01 09:43 AM

[Dividends4Life:]

Generally, I quote dividend increases on a sequential basis (current vs. last dividend).

D4L

2008 Dec 01 12:50 PM

[granger:]

Thank you, great ideas and info as always

2008 Dec 01 05:39 PM

[Jeff:]

Dear Dividends4Life

Is there a place on Yahoo, CNBC, or Bloomberg where I can get a list of those company's that have increased their dividend this quarter?

NNN has increased it's dividend for something like 19 years, Where can I find a list of other company's that have done that.

Thank you for your help with this.

Jeff Herman
[e-mail]

P.S. Do you have a newsletter about your dividend strategy?

2008 Dec 01 08:20 PM

[Dividends4Life:]

Jeff: Take a look at the Dividend Champions spreadsheet at:
dripinvesting.org/tool...

I don't have a newsletter, but you may want to check out my blog at:
www.dividends4life.com/

I usually have about 6-7 posts a week.

Best Wishes,
D4L

2008 Dec 01 09:23 PM

[Jeff:]

Tks much

2008 Dec 02 03:09 AM

[AEG:]

UBSI on that basis is not an increase


On Dec 01 12:50 PM Dividends4Life wrote:

> Generally, I quote dividend increases on a sequential basis (current
> vs. last dividend).
>
> D4L

2008 Dec 02 11:11 AM