Dividend Contenders: 19 Increases Expected In The Next 11 Weeks

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 |  Includes: AAN, AROW, BRO, CPKF, CZFS, DCM, FLIC, LMT, MATW, MLAB, MPR, MSFT, MSM, NIDB, NTT, PRGO, SFG, TEVA, WHG
by: David Fish

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 Continues to Accelerate

As mentioned last month, the quicker pace entering the autumn months is accelerating as we enter the fourth quarter of the year. (Next month, we'll see some December anniversaries that represent "accelerated" payments - prompted by last year's tax-hike fears - that may appear as "delays," but 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 Contenders (10-24 years):

Company

Ticker

No.

8/30

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Nippon Tele & Tele

(NYSE:NTT)

11

25.38

3.64

12.47

9/27/12

0.92

NTT DoCoMo Inc.

(NYSE:DCM)

11

16.03

4.49

4.76

9/27/12

0.72

First of Long Island Corp.

(NASDAQ:FLIC)

17

36.83

2.72

8.70

10/1/12

1.00

Citizens Financial Services

(OTCPK:CZFS)

14

48.00

2.54

3.39

10/17/12

1.22

Northeast Indiana Bancorp

(OTCQB:NIDB)

18

19.86

3.83

5.56

11/2/12

0.76

Brown & Brown Inc.

(NYSE:BRO)

19

31.14

1.16

5.88

11/5/12

0.36

MSC Industrial Direct Co.

(NYSE:MSM)

10

76.00

1.58

20.00

11/5/12

1.20

Microsoft Corp.

(NASDAQ:MSFT)

10

33.40

2.75

15.00

11/13/12

0.92

Teva Pharmaceutical

(NYSE:TEVA)

13

38.22

2.71

14.76

11/13/12

1.03

StanCorp Financial Group

(NYSE:SFG)

14

52.32

1.78

4.49

11/20/12

0.93

Matthews International

(NASDAQ:MATW)

18

36.90

1.08

11.11

11/21/12

0.40

Perrigo Company

(NYSE:PRGO)

10

121.55

0.30

12.50

11/27/12

0.36

Mesa Laboratories Inc.

(NASDAQ:MLAB)

10

65.06

0.86

7.69

11/28/12

0.56

Aaron's Inc.

(NYSE:AAN)

10

27.07

0.25

13.33

11/29/12

0.07

Arrow Financial Corp.

(NASDAQ:AROW)

19

25.39

3.94

2.00

11/29/12

1.00

Chesapeake Financial

(OTCQB:CPKF)

20

18.75

2.56

9.09

11/29/12

0.48

Lockheed Martin

(NYSE:LMT)

10

122.42

3.76

15.00

11/29/12

4.60

Met-Pro Corp.

(NYSE:MPR)

12

13.60

2.13

2.11

11/29/12

0.29

Westwood Holdings Group

(NYSE:WHG)

11

47.51

3.37

8.11

11/29/12

1.60

Click to enlarge

MR=Most Recent; LY=Last Year

Note that there are a number of foreign companies above that trade as ADRs (American Depository Receipts), so potential investors should consider tax withholding and currency exchange, in addition to the possibility of an irregular dividend schedule. Among the Contenders and Challengers there are also about two dozen MLPs (Master Limited Partnerships) that typically increase their distributions on a quarterly basis, which they would typically announce in late October and pay in early November. 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
(Click to enlarge)

Disclosure: I am long LMT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.