Dividend Challengers: 15 Increases Expected In The Next 11 Weeks

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 |  Includes: AMP, APU, AWK, BAX, COH, CSX, GOLD, HCBC, MNRO, NOV, ORIT, POR, RBC, TRV, UBNK
by: David Fish

Summary

Six companies set to become contenders.

Ameriprise, CSX, and Baxter lead the way.

High yields and dividend growth available.

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 Challengers (5-9 years):

Company

Ticker

No.

3/31

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Oritani Financial Corp.

(NASDAQ:ORIT)

5

15.81

4.43

16.67

5/1/13

0.70

Ameriprise Financial

(NYSE:AMP)

9

110.07

1.89

15.56

5/2/13

2.08

United Financial Banc.

(NASDAQ:UBNK)

8

18.39

2.39

10.00

5/7/13

0.44

AmeriGas Partners LP

(NYSE:APU)

9

42.25

7.95

5.00

5/8/13

3.36

High Country Bancorp

(OTCPK:HCBC)

6

30.00

6.67

42.86

5/8/13

2.00

Randgold Resources

(NASDAQ:GOLD)

7

75.00

0.67

25.00

5/8/13

0.50

American Water Works

(NYSE:AWK)

6

45.40

2.47

12.00

5/22/13

1.12

CSX Corp.

(NASDAQ:CSX)

9

28.97

2.07

7.14

5/29/13

0.60

Monro Muffler Brake Inc.

(NASDAQ:MNRO)

9

56.88

0.77

10.00

5/29/13

0.44

Baxter International Inc.

(NYSE:BAX)

7

73.58

2.66

8.89

6/5/13

1.96

Coach Inc.

(NYSE:COH)

5

49.66

2.72

12.50

6/5/13

1.35

Travelers Companies

(NYSE:TRV)

9

85.10

2.35

8.70

6/6/13

2.00

National Oilwell Varco

(NYSE:NOV)

5

77.87

1.34

100.00

6/12/13

1.04

Portland General Elec.

(NYSE:POR)

8

32.34

3.40

1.85

6/21/13

1.10

Regal Beloit Corp.

(NYSE:RBC)

9

72.71

1.10

5.26

6/26/13

0.80

Click to enlarge

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.

Disclosure: I am long COH. 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.