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

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 companies 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 Picks Up

The summer's typical slowdown in the announcement of dividend increases seems to be giving way to a slightly quicker pace as we enter the autumn months, and that, too, should accelerate as we enter the fourth quarter of the year. (Some December anniversaries may represent "accelerated" payments - prompted by last year's tax-hike fears - that would normally have taken place in early 2013, so once we approach the final weeks of the year, we may see some "delays" that are actually a return to a more normal schedule.) The table below coincides with the usual "forward look" of about 11 weeks for this article.

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 Champions (25 or more years):

Company

Ticker

No.

7/31

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Altria Group Inc.

(MO)

44

35.06

5.02

7.32

9/12/12

1.76

Cincinnati Financial

(CINF)

52

49.01

3.33

1.24

9/17/12

1.63

Clarcor Inc.

(CLC)

48

54.98

0.98

12.50

10/4/12

0.54

Brady Corp.

(BRC)

27

33.27

2.28

2.70

10/8/12

0.76

RPM International Inc.

(RPM)

39

35.24

2.55

4.65

10/11/12

0.90

Bowl America Class A

(BWL.A)

41

13.75

4.80

3.13

10/22/12

0.66

Eaton Vance Corp.

(EV)

32

40.47

1.98

5.26

10/29/12

0.80

Northwest Natural Gas

(NWN)

57

43.94

4.14

2.25

10/29/12

1.82

Eagle Financial Services

(OTCQB:EFSI)

26

24.31

3.13

5.56

10/31/12

0.76

MR=Most Recent; LY=Last Year

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 Champions: 9 Increases Expected By The End Of October