Seeking Alpha
Dividend growth investing, retirement
Profile| Send Message|
( followers)  

This is a companion article to my two on Dividend Champions with yields that are 50% greater than that on a 10-year Treasury, and Dividend Contenders with yields that are twice that benchmark. This article completes the trilogy.

As I write this, the yield on the 10-year Treasury is 1.79% (source: Bloomberg). It changes a little each day -- the other two articles had benchmarks of 1.86% and 1.74%, respectively. So a yield twice as much as the current 10-year Treasury would be 3.58%, which I have rounded to 3.6%. Therefore, the stocks in the table below are Dividend Challengers with yields of 3.6% or more. As Dividend Challengers, each has raised its annual dividend for between 5 and 9 consecutive years. The scorecard is that 54 Challengers out of 164 qualify.

In the table below, in addition to each company's current yield, I have included the three-year dividend growth rate (DGR covering 2010 through 2012), the amount of each company's most recent increase, and the number of consecutive years each stock has increased its dividend payout. The source of all data is David Fish's most recent Dividend Champions (CCC) document, so the data is updated through March 28, 2013. Thanks again to David for allowing me to present different perspectives of his CCCs.

Dividend Challengers With Yields 100% More Than 10-Year Treasuries

Stock

Ticker

Yield %

3-Year DGR

%/yr.

Most Recent Increase

%

Years of Dividend Growth

Notes

Alliance Holdings

(AHGP)

5.6

17.3

2.8

8

MLP

AmeriGas Partners

(APU)

7.1

6.1

4.9

8

MLP

Astrazeneca

(AZN)

5.7

10.9

1.8

9

Birner Dental Management

(BDMS)

3.8

9.0

10.0

9

Red ink caution

Boardwalk Pipeline Partners

(BWP)

3.8

2.9

0.5

7

MLP

Brookfield Infrastructure

(BIP)

4.5

12.3

14.7

6

Cablevision Systems

(CVC)

4.0

37.4

42.9

5

Red ink caution

China Mobile

(CHL)

4.1

7.1

1.9

7

CMS Energy

(CMS)

3.7

24.3

6.3

7

Crestwood Midstream Partners

(CMLP)

8.6

10.1

2.0

6

MLP

Darden Restaurants

(DRI)

3.9

27.4

16.3

8

DCP Midstream Partners

(DPM)

5.9

3.5

1.5

8

MLP

Digital Realty Trust

(DLR)

4.7

29.3

6.9

9

REIT

Dynex Capital

(DX)

10.9

7.4

3.6

5

REIT

El Paso Pipeline Part.

(EPB)

5.6

17.3

5.2

6

MLP

Enbridge Energy Part.

(EEP)

7.2

2.8

2.1

6

MLP

Energy Transfer Equity

(ETE)

4.3

5.9

1.6

8

MLP

EV Energy Part.

(EVEP)

5.6

0.5

0.1

7

MLP

Exterran Part.

(EXLP)

7.8

2.6

1.0

7

MLP

Farmers & Merchants Bank

(OTCQB:FMAO)

3.6

2.3

5.3

9

Health Care REIT

(HCN)

4.5

2.9

3.4

6

REIT

Hickory Tech

(HTCO)

5.7

2.8

3.6

5

High Country Bancorp

(OTCQB:HCBC)

6.2

27.7

27.3

5

Holly Energy Partners

(HEP)

4.7

5.0

1.6

9

MLP

Immarsat

(OTCPK:IMASF)

4.3

6.6

10.0

8

Intel

(INTC)

4.1

15.8

7.1

9

Lorillard

(LO)

5.5

17.3

6.5

6

National CineMedia

(NCMI)

5.6

11.2

10.0

6

Red ink caution

Navios Maritime Part.

(NMM)

12.2

3.2

0.6

5

NorthWestern

(NEW)

3.8

3.4

2.7

9

NuStar GP Holdings

(NSH)

6.7

6.4

6.9

7

MLP

ONEOK Part.

(OKS)

5.0

6.2

3.7

8

MLP

Orange County Bancorp

(OTCQB:OCBI)

3.9

4.3

5.6

5

PennantPark Investment

(PNNT)

9.9

5.3

3.7

6

BDC; red ink caution

Phillip Morris

(PM)

3.7

12.8

10.4

5

Portland General Electric

(POR)

3.6

2.3

1.9

7

Raytheon

(RTN)

3.7

16.8

10.0

9

Reynolds American

(RAI)

5.3

10.5

5.4

8

Senior Housing Properties

(SNH)

5.8

2.3

2.6

9

REIT

Spectra Energy Part.

(SEP)

5.0

8.5

1.0

7

MLP

StoneMor Part.

(STON)

9.4

1.8

0.9

8

MLP

Targa Resources Part.

(NGLS)

5.8

6.9

3.1

6

MLP

TECO Energy

(TE)

4.9

3.2

2.3

6

Teekay LNG Part.

(TGP)

6.5

5.2

7.1

8

MLP

Teekay Offshore Part.

(TOO)

6.8

4.2

2.5

6

Textainer

(TGH)

4.6

21.0

2.3

7

Tower Group

(TWGP)

4.1

42.4

50.0

6

Red ink caution

Transmontaigne Part.

(TLP)

5.1

2.5

1.6

8

Triangle Capital

(TCAP)

7.7

7.6

1.9

7

BDC

Vanguard Natural Resources

(VNR)

8.6

8.9

1.3

5

MLP

Verizon Comm.

(VZ)

4.2

2.8

3.0

8

Westar Energy

(WR)

4.1

3.3

3.0

9

Williams Partners

(WPZ)

6.4

7.3

2.5

9

MLP

Xcel Energy

(XEL)

3.6

3.2

3.9

9

Source: Dividend Champions, updated March 28, 2013.

This final list is dominated by MLPs, REITs, and BDCs, although there are plenty of "regular" corporations too. Several of the latter are utilities. The five stocks labeled "red ink caution" have not raised their dividends in over a year. Miz Magic DiviDogs has determined that 84% of CCC stocks that cut their dividends go overdue first.

Appearance on this list does not mean that any stock is a great dividend growth investment. Dividend stocks -- like any investment -- should be matched to your own situation and goals. They are all subject to market risk, individual company risks, your own behavioral biases, possible incompetent management, and other risks too numerous and scary to mention here. Past performance does not guarantee squat. Please do your own due diligence before investing in anything.

Source: 54 Dividend Challengers Yielding 100% More Than 10-Year Treasuries