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Summary

  • National Retail Properties is poised to become the next Champion.
  • Northrop, FedEx, and Tiffany lead the way.
  • Caterpillar, ConocoPhillips, and Casey's General Stores highlight July raises.

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.

Summer Doldrums?

The pace of dividend increases picked back up in May, as expected, but June and (especially) July promise to provide another of those occasional lulls in activity before the pace picks up again in the Fall. We're still likely see the usual spate of quarterly hikes in late May and early June 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.

4/30

Div.

MR%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

CCFNB Bancorp Inc.

(OTCQB:CCFN)

16

35.20

3.86

3.03

5/17/13

1.36

WaterFurnace Renewable

(OTC:WFIFF)

11

20.80

4.81

4.17

5/21/13

1.00

Northrop Grumman

(NYSE:NOC)

10

121.51

2.01

10.91

5/23/13

2.44

First Robinson Financial

(OTCQB:FRFC)

13

33.85

2.95

5.26

5/30/13

1.00

Flowers Foods

(NYSE:FLO)

12

20.52

2.19

5.47

6/3/13

0.45

W.R. Berkley Corp.

(NYSE:WRB)

12

44.24

0.90

11.11

6/7/13

0.40

Thomasville Bancshares

(OTCQB:THVB)

14

36.00

2.08

7.14

6/12/13

0.75

Acme United Corp.

(NYSEMKT:ACU)

10

16.83

1.90

14.29

6/12/13

0.32

FedEx Corp.

(NYSE:FDX)

12

136.25

0.44

7.14

6/13/13

0.60

Tiffany & Company

(NYSE:TIF)

11

87.49

1.55

6.25

6/18/13

1.36

Republic Bancorp KY

(NASDAQ:RBCAA)

15

24.01

2.93

6.67

6/19/13

0.70

John Wiley & Sons Inc.

(NYSE:JW.A)

20

57.46

1.74

4.17

6/27/13

1.00

PSB Holdings Inc.

(OTCQB:PSBQ)

20

32.00

2.44

7.76

7/10/13

0.78

Caterpillar Inc.

(NYSE:CAT)

20

105.40

2.28

15.38

7/18/13

2.40

ConocoPhillips

(NYSE:COP)

13

74.31

3.71

4.55

7/18/13

2.76

Fastenal Company

(NASDAQ:FAST)

14

50.08

2.00

25.00

7/24/13

1.00

National Retail Properties

(NYSE:NNN)

24

34.13

4.75

2.53

7/29/13

1.62

CARBO Ceramics

(NYSE:CRR)

13

139.91

0.86

11.11

7/30/13

1.20

Casey's General Stores

(NASDAQ:CASY)

14

68.66

1.05

9.09

7/30/13

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. In the case of NNN, the company appears to be slightly overvalued, but it still offers a good yield and is poised to become the next Champion. I'm attaching the chart below.

Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.

Source: Dividend Contenders: 19 Increases Expected In The Next 11 Weeks