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Summary

  • Companies give shareholders a reason to smile.
  • Decades-long streaks grow longer.
  • Oil giants offer exceptional value.

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 separated 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. Note that "CCC" refers to the combination of Champions, Contenders and Challengers.

Happy Shareholder Meetings

The pace of dividend increases picked up in February and early March, pushing the number of CCC companies well above 500 and setting a positive mood for the approaching annual shareholder meetings. I expect the pace of new Challengers to be strong for the rest of the year, although slightly less numerous as they were in February. 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.

2/28

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Air Products & Chem.

(NYSE:APD)

31

121.32

2.34

10.94

3/27/13

2.84

Raven Industries

(NASDAQ:RAVN)

27

36.57

1.31

14.29

4/18/13

0.48

H.B. Fuller Company

(NYSE:FUL)

44

48.48

0.83

17.65

4/23/13

0.40

Procter & Gamble Co.

(NYSE:PG)

57

78.66

3.06

7.03

4/24/13

2.41

PPG Industries Inc.

(NYSE:PPG)

42

197.82

1.23

3.39

5/8/13

2.44

W.W. Grainger Inc.

(NYSE:GWW)

42

255.02

1.46

16.25

5/9/13

3.72

ExxonMobil Corp.

(NYSE:XOM)

31

96.37

2.61

10.53

5/9/13

2.52

Chevron Corp.

(NYSE:CVX)

26

115.33

3.47

11.11

5/15/13

4.00

Sonoco Products Co.

(NYSE:SON)

31

41.98

2.95

3.33

5/15/13

1.24

Mine Safety Appliances

(NYSE:MSA)

42

51.45

2.33

7.14

5/16/13

1.20

Questar Corp.

(NYSE:STR)

34

23.75

3.03

5.88

5/22/13

0.72

Johnson & Johnson

(NYSE:JNJ)

51

92.04

2.87

8.20

5/23/13

2.64

RLI Corp.

(NYSE:RLI)

38

43.25

1.57

6.25

5/29/13

0.68

Weyco Group Inc.

(NASDAQ:WEYS)

32

26.38

2.73

5.88

5/29/13

0.72

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.

Source: Dividend Champions: 14 Increases Expected By The End Of May