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Editors' Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.

In compiling the Dividend Champions list (found here: http://dripinvesting.org/Tools/Tools.asp ) 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. I have modified the Expected Increase series to reflect a more SA-friendly format by separating the Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years) into distinct groupings, so please look for the other articles, which I hope will be published about the same time.

Dividend Growth Vacation Ends Soon

As mentioned previously, the summer typically features a slowdown in the announcement of dividend increases, and we have seen that through late July. The table below coincides with the usual "forward look" of about 11 weeks for this article and, as you can see, there will be a bit of a pickup in activity as we move into August and September.

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 Contenders (10-24 years):

Company

Ticker

No.

6/28

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

TC Pipelines LP

(NYSE:TCP)

13

48.28

6.46

1.30

8/1/12

3.12

Norfolk Southern

(NYSE:NSC)

11

72.65

2.75

6.38

8/9/12

2.00

Lindsay Corp.

(NYSE:LNN)

10

74.98

0.61

27.78

8/15/12

0.46

Murphy Oil Corp.

(NYSE:MUR)

16

60.89

2.05

13.64

8/15/12

1.25

Ritchie Brothers Auction.

(NYSE:RBA)

10

19.22

2.55

8.89

8/15/12

0.49

United Technologies

(NYSE:UTX)

19

92.94

2.30

11.46

8/15/12

2.14

Maxim Integrated Products

(NASDAQ:MXIM)

11

27.78

3.46

9.09

8/20/12

0.96

Badger Meter Inc.

(NYSE:BMI)

20

44.55

1.53

6.25

8/29/12

0.68

Muncy Bank Financial Inc.

(OTCQB:MYBF)

12

39.00

2.05

11.11

8/29/12

0.80

BHP Billiton Ltd.

(NYSE:BHP)

10

57.66

3.95

3.64

9/5/12

2.28

BHP Billiton plc

(NYSE:BBL)

10

51.27

4.45

3.64

9/5/12

2.28

Harris Corp.

(NYSE:HRS)

11

49.25

3.01

12.12

9/5/12

1.48

Best Buy Corp.

(NYSE:BBY)

10

27.33

2.49

6.25

9/7/12

0.68

Atrion Corp.

(NASDAQ:ATRI)

10

218.71

1.02

14.29

9/12/12

2.24

Canadian Natural Res.

(NYSE:CNQ)

12

28.26

1.43

15.76

9/12/12

0.40

Community Bank System

(NYSE:CBU)

20

30.85

3.50

3.85

9/12/12

1.08

Int'l Flavors & Fragrances

(NYSE:IFF)

10

75.16

1.81

9.68

9/17/12

1.36

New Jersey Resources

(NYSE:NJR)

17

41.53

3.85

5.26

9/20/12

1.60

BancFirst Corp. OK

(NASDAQ:BANF)

19

46.55

2.49

7.41

9/26/12

1.16

Atlantic Tele Network Inc.

(NASDAQ:ATNI)

15

49.66

2.01

8.70

9/27/12

1.00

HCC Insurance Holdings

(NYSE:HCC)

16

43.11

1.53

6.45

9/27/12

0.66

Nippon Tele&Tele

(NYSE:NTT)

11

26.01

3.56

12.47

9/27/12

0.92

NTT DoCoMo Inc.

(NYSE:DCM)

11

15.65

4.60

4.76

9/27/12

0.72

Republic Services Inc.

(NYSE:RSG)

10

33.94

2.77

6.82

9/27/12

0.94

MR=Most Recent; LY=Last Year

In addition, there are about two dozen MLPs (Master Limited Partnerships) that tend to raise their payouts each quarter and are likely to announce those increases in late July or early August. 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 Contenders: 24 Increases Expected By The End Of September