Ten Dividend Champions, 50 Plus Years of Consecutive Increases

In every field there are winners and there are champions. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions. Not surprisingly, I went to the Dividend Champions list to find these ten dividend stocks that stand alone with 50+ years of consecutive dividend increases. They are presented here in descending rank:

10. Integrys Energy Group (TEG) - 51 Years

This utility holding company serves about 485,000 regulated electric and 1,674,000 regulated gas customers. The company also operates an unregulated energy supply and services business. On Tuesday, TEG increased its quarterly dividend 1.5% to $0.68. The current yield is 6.81%.

9. 3M Company (MMM) - 51 Years

This diversified global company has operations in electronics, health care, industrial, consumer and office, telecommunications, safety and security, and other markets. Last week, MMM declared a 2% quarterly dividend increase to $0.54/share. The current yield is 4.13%.

8. Emerson Electric (EMR) - 52 Years

This company primarily makes backup power equipment for telecom and Internet providers and users, climate control components, and electric motors. EMR last increased its quarterly dividend 10% in November 2008. The current yield is 4.12%.

7. Parker-Hannifin Corp. (PH)- 52 Years

This company is a global maker of industrial pumps, valves and hydraulics. Its products are used in everything from jet engines to trucks and autos and utility turbines. PH last increased its quarterly dividend 19% in November 2008. The current yield is 2.46%.

6. Procter & Gamble Co. (PG) - 52 Years

This leading consumer products company markets household and personal care products in more than 180 countries. PG last increased its quarterly dividend 14% in April 2008. The current yield is 3.13%.

5. Genuine Parts Co. (GPC) - 53 Years

This company is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. GPC last increased its quarterly dividend 7% in March 2008. The current yield is 4.83%.

4. Northwest Natural Gas (NWN) - 53 Years

This U.S. gas distribution utility serves Oregon and southwest Washington. NWN last increased its quarterly dividend 5% in October 2008. The current yield is 3.60%.

3. Dover Corp. (DOV) - 53 Years

This company manufactures a broad range of specialized industrial products and sophisticated manufacturing equipment. DOV last increased its quarterly dividend 25% in August 2008. The current yield is 3.37%.

2. American States Water (AWR) - 54 Years

This utility primarily serves water customers in California, as well as in Arizona. It also provides electric service to a small section of San Bernardino County. AWR has not increased its dividend since November 2007. If it remains flat during 2009, AWR will lose its spot on this list. The current yield is 2.73%.

And finally, the defending national champion of dividend increases…

1. Diebold Inc. (DBD) - 55 Years

This company develops, makes, and services self-service transaction systems, electronic & physical security systems, and software used to equip bank facilities, voting terminals. This month DBD increased its quarterly dividend 4% to $0.26/share to keeps its streak alive. The current yield is 4.20%.

Earlier this month there were 11 companies eligible for this list. Unfortunately, Masco (MAS) cashed in a half century of excellence and cut its dividend.

This list is a great starting point for additional analysis. Over the next several weeks, I plan on prescreening those on the list I had not previously looked at. If any look promising, I will provide a more comprehensive evaluation in the future.

Full Disclosure: Long TEG, PG

Comments

[User 359927:]

Please note that the recent hike by Diebold was actually the 56th consecutive annual increase...per the press release...
biz.yahoo.com/prnews/0...

Feb 19 05:59 AM

[Lightway:]

Once again great list. It's important to be able to identify longevity (as best as reasonably possible) in these volatile times. I like that there are a couple of utility and water stocks here, the ultimate boring yet reliable sector.

Feb 19 09:51 AM

[kurt walter:]

Nice list. If any of these companies break their record of raising dividends, or worse cut the dividend, then we know even the strongest businesses are getting rocked.

Feb 19 01:49 PM

[Andrew Phil...:]

what about jnj, doesn't it also qualify? and adp?

Feb 19 09:33 PM

[donzelion:]

Shareholders shouldn't look at dividends as some kind of reward by a company, nor should we interpret dividends as a sign of a strength or health.

Steady increases that keep pace with inflation does tend to indicate honest management that puts its duties to shareholders first. If a company fails to offer a dividend (or a share buyback) and fails to give a reason why, then that company better have a very clear justification (e.g., emergency, massive mergers, or whatever other justification...)

Corporate managers are nothing but servants of the shareholders. Would you pay a maid or a gardener a share of the increased value of your house? Would you praise a gardener if he kept up with the household gardening, even as the plants within the garden grew?

Feb 21 03:54 AM