Updated Dividend Growers List from the S&P 1500

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 |  Includes: ABT, ADM, AFL, ALB, AOS, APD, ATR, BDX, BEC, BMI, BRC, BRO, CAH, CHD, CHRW, CL, CLC, DCI, DHR, EGN, EOG, EXPD, FDO, FDS, FPL-OLD, GD, GWW, HFC, HHS, HP, HSC, IBM, JNJ, JWN, LOW, MATW, MKC, MMM, MUR, NDSN, OMI, OZRK, PB, PEP, PG, PX, RLI, ROP, ROST, SCL, SEIC, SFG, SFNC, SHW, SIAL, SPGI, SYK, TFX, TGT, TJX, TMP, TR, UGI, UMBF, UTX, UVV, VAL, VFC, WBA, WMT, WST, XOM
by: David I. Templeton, CFA

Standard & Poor's recently updated the list of dividend growers from the S&P 1500 Index. In addition to the list containing decent growers, the companies exhibit a strong dividend coverage ratio. The criteria used in assembling the list include:

  • paid increasing annual cash dividend for the past 10-years

  • actual 2008 and 2009 & 2010 estimated coverage ratio of at least 2-to-1 (based on street estimates divided by the current 12 month indicated dividend rate)

As S&P notes, and I certainly concur, this is not a buy list. It is a useful starting point for potential dividend growers though. The list has changed from the one detailed in my post on June 30, 2009.