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

Summary

  • Pace of increases accelerates.
  • IBM, Costco, Northrop lead the way.
  • Utilities and Financials provide variety.

In compiling the Dividend Champions list, 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.

Spring Lull Passes

The pace of dividend increases slacked off in late March and early April, following a brusque pace heading into the annual shareholder meetings. I expect the pace of increases to pick back up as we approach May and June, followed by occasional lulls in activity as we move toward year-end. In addition to the expected annual increases, we'll likely see the usual spate of quarterly hikes by more than two dozen Master Limited Partnerships (or MLPs), particularly among the Contenders and Challengers. 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.

3/31

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Donegal Group Inc. A

(NASDAQ:DGICA)

11

14.58

3.50

4.08

4/29/13

0.51

Donegal Group Inc. B

(NASDAQ:DGICB)

11

27.09

1.70

4.55

4/29/13

0.46

People's United Fin'l

(NASDAQ:PBCT)

21

14.87

4.37

1.56

4/29/13

0.65

Southern Company

(NYSE:SO)

12

43.94

4.62

3.57

5/2/13

2.03

Int'l Business Machines

(NYSE:IBM)

18

192.49

1.97

11.76

5/8/13

3.80

Costco Wholesale

(NASDAQ:COST)

10

111.68

1.11

12.73

5/15/13

1.24

Eagle Bancorp Montana

(NASDAQ:EBMT)

14

11.15

2.60

1.75

5/15/13

0.29

Franklin Electric Co.

(NASDAQ:FELE)

21

42.52

0.73

6.90

5/15/13

0.31

CCFNB Bancorp Inc.

(OTCQB:CCFN)

16

35.25

3.86

3.03

5/17/13

1.36

WaterFurnace Renew.

(OTC:WFIFF)

11

18.75

5.33

4.17

5/21/13

1.00

Assurant Inc.

(NYSE:AIZ)

10

64.96

1.54

19.05

5/23/13

1.00

Northrop Grumman

(NYSE:NOC)

10

123.38

1.98

10.91

5/23/13

2.44

Cullen/Frost Bankers

(NYSE:CFR)

20

77.53

2.58

4.17

5/29/13

2.00

Factset Research Sys.

(NYSE:FDS)

15

107.81

1.30

12.90

5/29/13

1.40

Expeditors International

(NASDAQ:EXPD)

19

39.63

1.51

7.14

5/30/13

0.60

First Robinson Fin'l

(OTCQB:FRFC)

13

33.00

3.03

5.26

5/30/13

1.00

Flowers Foods

(NYSE:FLO)

12

21.45

2.10

5.47

6/3/13

0.45

W.R. Berkley Corp.

(NYSE:WRB)

12

41.62

0.96

11.11

6/7/13

0.40

Acme United Corp.

(NYSEMKT:ACU)

10

16.42

1.95

14.29

6/12/13

0.32

Airgas Inc.

(NYSE:ARG)

11

106.51

1.80

20.00

6/12/13

1.92

Thomasville Bancsh.

(OTCQB:THVB)

14

33.00

2.27

7.14

6/12/13

0.75

Chesapeake Utilities

(NYSE:CPK)

10

63.16

2.44

5.48

6/13/13

1.54

FedEx Corp.

(NYSE:FDX)

12

132.56

0.45

7.14

6/13/13

0.60

Tiffany & Company

(NYSE:TIF)

11

86.15

1.58

6.25

6/18/13

1.36

Republic Bancorp KY

(NASDAQ:RBCAA)

15

22.60

3.12

6.67

6/19/13

0.70

National Healthcare Cp.

(NYSEMKT:NHC)

10

55.77

2.30

6.67

6/26/13

1.28

Valmont Industries

(NYSE:VMI)

12

148.84

0.67

11.11

6/26/13

1.00

Cardinal Health Inc.

(NYSE:CAH)

17

69.98

1.73

10.00

6/27/13

1.21

John Wiley & Sons Inc.

(JW-A)

20

57.64

1.73

4.17

6/27/13

1.00

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 Contenders: 29 Increases Expected By June 30