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In compiling the Dividend Champions list (found here) 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 Challengers (5-9 years):

Company

Ticker

No.

6/28

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Bank of Marin Bancorp

(BMRC)

8

40.00

1.80

5.88

7/31/12

0.72

Intel Corp.

(INTC)

9

24.23

3.71

7.14

8/3/12

0.90

Navios Maritime Partners LP

(NMM)

5

14.45

12.25

0.57

8/6/12

1.77

Astrazeneca plc

(AZN)

9

47.30

6.03

5.56

8/8/12

2.85

Steris Corp.

(STE)

8

42.88

1.77

11.76

8/21/12

0.76

Westlake Chemical Corp.

(WLK)

9

96.41

0.78

154.24

8/28/12

0.75

Crane Company

(CR)

8

59.92

1.87

7.69

8/29/12

1.12

Delta Natural Gas

(DGAS)

8

21.25

3.39

2.86

8/29/12

0.72

Bob Evans Farms

(BOBE)

7

46.98

2.34

10.00

8/30/12

1.10

ITC Holdings Corp.

(ITC)

8

91.30

1.65

7.09

8/30/12

1.51

China Mobile Limited

(CHL)

7

51.77

4.21

1.85

9/4/12

2.18

Shire plc

(SHPG)

9

95.11

0.48

14.98

9/5/12

0.46

Brinker International

(EAT)

8

39.43

2.03

25.00

9/6/12

0.80

Broadridge Financial Sol.

(BR)

6

26.58

2.71

12.50

9/12/12

0.72

Hawkins Inc.

(HWKN)

8

39.39

1.73

6.25

9/19/12

0.68

Philip Morris International

(PM)

5

86.62

3.93

10.39

9/25/12

3.40

Farmers & Merchants Banc

(OTCQB:FMAO)

9

21.45

3.73

5.26

9/28/12

0.80

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. There are also a number of companies that would qualify as Challengers with their next increase:

Company

Symbol

Yrs

Ex-Div

Reinsurance Group

(RGA)

4

8/8/12

Chemed Corp.

(CHE)

4

8/9/12

Solera Holdings Inc.

(SLH)

4

9/4/12

China Petroleum & Chem.

(SNP)

4

9/5/12

Harmony Gold Mining Ltd.

(HMY)

4

9/12/12

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 Challengers: 17 Increases Expected In The Next 11 Weeks