Seeking Alpha
Value, long-term horizon, dividend investing, dividend growth investing
Profile| Send Message|
( followers)  

The Dividend Champions spreadsheet and PDF have been updated through 9/30/13 and are available here. Note that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. "CCC" refers to the universe of Champions, Contenders, and Challengers.

Final Quarter Begins

The last three months of the year are now under way and carry their own particular significance, on both the negative and positive side. On the one hand, it's the final chance for some companies to "save" their streaks by announcing a dividend increase. (I'll submit an article about 'Overdue Increases' later this week.) On the other hand, there are plenty of companies that typical boost their payouts in the fourth quarter, and as we approach the end of the year, we'll begin to see announcements of increases by "Near-Challengers" that will join the ranks of the Challengers by paying the higher rates in early 2014. After some likely deletions through the end of November, we should see a steady rise in the CCC population, with the total number exceeding 500 by next February or March and approaching 550 by mid-2014.

September brought a reversal of the sell-off of August, despite a late slump toward the end of the month. The average price of CCC stocks, which dipped by about $1.50 in August, bounced back by over $2 in September, pushing the average yield back down to 2.88%, from 3.00%, exactly the amount that it had risen a month earlier. The average of the Most Recent Increases remains well above 9%. As always, please use the CCC only as a starting point for more in-depth research. Feel free to leave any suggestions in the Comment area below.

Quick Summary

The Summary tab includes a table comparing the composite numbers from the latest update to those from the previous month and the end of the previous year. Below that is a summary of the latest month's activity, in terms of companies added, deleted, or promoted. That is reflected below:

Quick Summary:

9/30/13

Champions

Contenders

Challengers

Total

No. of Companies

105

210

154

469

Ave. No. of Years

39.6

14.3

7.1

17.6

Average Price

61.41

59.84

53.04

57.96

Average % Yield

2.58

2.78

3.21

2.88

Ave. MR % Increase

8.77

8.54

10.63

9.23

8/30/13

Champions

Contenders

Challengers

Total

No. of Companies

105

209

158

472

Ave. No. of Years

39.6

14.3

7.1

17.5

Average Price

59.02

57.99

49.92

55.52

Average % Yield

2.68

2.83

3.44

3.00

Ave. MR % Increase

8.91

8.56

10.58

9.26

12/31/12

Champions

Contenders

Challengers

Total

No. of Companies

105

183

170

458

Ave. No. of Years

39.0

14.3

7.2

17.3

Average Price

53.48

50.89

45.25

49.39

Average % Yield

2.93

3.02

3.62

3.22

Ave. MR % Increase

7.75

8.58

10.43

9.06

MR = Most Recent

Additions:

PetSmart Inc. (NASDAQ:PETM) to Challengers

Tyco International Ltd. (NYSE:TYC) to Challengers

Deletions:

Birner Dental Management Svcs (NASDAQ:BDMS) from Challengers

Dynex Capital Inc. (NYSE:DX) from Challengers

Kaydon Corp. (NYSE:KDN) from Challengers

Met-Pro Corp. (NYSE:MPR) from Contenders

PennantPark Investment Corp. (NASDAQ:PNNT) from Challengers

Promotions:

Intel Corp. (NASDAQ:INTC) from Challenger to Contender *

Yum! Brands Inc. (NYSE:YUM) from Challenger to Contender

* By Default (No increase in 2013, but total dividends>2012)

(Table from author; may include underlying data from FinViz.com)

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. This month, I decided to focus on Intel, which "backed into" a promotion to Contender status (by paying more in 2013 than in 2012, despite not having increased the dividend rate).


(Click to enlarge)

Disclosure: I am long YUM, INTC. 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.

Source: Dividend Champions For October 2013