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The Dividend Champions spreadsheet and PDF have been updated through 2/28/11 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. Together, all of these companies may be referred to using the abbreviation “CCC.”

This is the sixth in a series of articles focusing on specific industries and isolating the CCC companies within those industries. The first five can be found under my articles page, beginning on March 2.

More than Oil

The extraction of materials from nature has been important for many years, even centuries, if not millennia. The heaviest degree of media attention focuses on oil and natural gas, but mining companies and those involved in agriculture also fall into this category.

In addition, I'm including chemical companies because most of their products are derived from petroleum during or after the refining process. In fact, many of the major oil companies either still have or once included petrochemical divisions. With almost daily headlines speculating about the price of a barrel of oil, it's clear that this is a commodity that has extreme importance around the world.

Political unrest in places like Libya has the potential for panic trading, even when the supply in question only represents about 2% of the world's output. Even natural gas, which is a byproduct of the drilling and extraction process, has become a vitally important commodity, of which many people have high hopes as the fuel of the future. Note that the pipeline companies that often process, store, or transport oil and gas are often Master Limited Partnerships (or MLPs), which were featured in the first article in this series.

Mining companies provide the raw material that goes into the making of steel, aluminum, and other metals, including copper, gold, and other precious metals, as well as uranium and coal for the production of electricity. Note that multinational company BHP Billiton (BHP), which has dual headquarters in Australia and the United Kingdom, also has oil and gas operations, as well as being one of the world's largest mining companies. They are one of many Large Caps among the Resource companies, which average three times the size of the typical CCC company. Chemicals represent another important industry and at least three of the firms in that category specialize in industrial gases, which are used in the manufacturing process by industrial users. The Agriculture category obviously represents an important part of the food chain, and is largely dominated by a few companies.

The Companies

Resource companies don't make up a large segment of the CCC universe, with 35 firms. But some of these stand out with long histories of dividend increases and above average yields, in contrast to the below average yield of the segment as a whole.

There are a number of foreign firms represented, but most of the American companies included also have substantial foreign operations. Investors should consider the role of foreign withholding taxes, which can be recovered through tax credit at filing time, unless the security is held in a retirement account. Note that Royal Dutch Shell's (RDS.A, RDS.B) streak is listed at 5 years, but its last increase came almost two years ago, so further research is definitely warranted before investment funds are committed.

Once again, I'm including as many columns of data as is practical, from a perspective of width and significance.

No.

2/28

%

Payout

TTM

NY%

MktCap

DGR

DGR

Company

Symbol

Industry

Yrs

Price

Yield

Inc.

%Ratio

P/E

Growth

($Mil)

5-yr

10-yr

Andersons Inc. (The)

ANDE

Agriculture

9

48.04

0.92

22.22

12.64

13.80

6.49

886

16.7

11.5

Archer Daniels Midland

ADM

Agriculture

36

37.18

1.72

6.67

21.12

12.27

4.19

23,690

12.0

12.6

Bunge Limited

BG

Agriculture

9

72.17

1.27

9.52

6.11

4.79

12.87

11,140

9.5

n/a

Monsanto Company

MON

Agriculture

10

71.89

1.56

5.66

54.37

34.90

18.31

38,580

25.9

n/a

Averages for

4

Agriculture

16.0

57.32

1.37

11.02

23.56

16.44

10.47

18,574

16.0

12.1

Air Products & Chem.

APD

Chemical

28

92.00

2.13

8.89

40.75

19.13

11.46

19,770

9.0

10.0

Airgas Inc.

ARG

Chemical

9

62.58

1.85

16.00

43.61

23.53

15.11

5,270

33.1

n/a

Albemarle Corp.

ALB

Chemical

17

57.56

1.15

17.86

18.80

16.40

11.55

5,270

12.6

9.3

H.B. Fuller Company

FUL

Chemical

41

21.55

1.30

2.94

19.58

15.07

12.71

1,060

2.8

2.9

Hawkins Inc.

HWKN

Chemical

6

38.27

1.57

7.14

25.86

16.50

n/a

395

12.3

7.8

NewMarket Corp.

NEU

Chemical

6

128.11

1.37

17.33

14.56

10.60

5.41

1,780

n/a

n/a

Oil-Dri Corp. of Amer.

ODC

Chemical

8

20.31

3.15

6.67

47.41

15.04

n/a

145

11.5

8.0

Praxair Inc.

PX

Chemical

18

99.38

2.01

11.11

52.08

25.88

13.33

30,140

20.1

19.2

RPM International

RPM

Chemical

37

22.97

3.66

2.44

64.62

17.67

14.49

2,990

6.2

5.3

Sigma-Aldrich Corp.

SIAL

Chemical

35

63.89

1.13

12.50

23.08

20.48

9.58

7,790

11.0

15.2

Westlake Chemical

WLK

Chemical

7

47.81

0.53

10.43

7.60

14.31

2.92

3,170

20.1

n/a

Averages for

11

Chemical

19.3

59.49

1.80

10.30

32.54

17.69

10.73

7,071

13.9

9.7

Arch Coal Inc.

ACI

Mining

7

33.53

1.19

11.11

41.24

34.57

54.37

5,450

19.5

12.9

BHP Billiton Ltd.

BHP

Mining

8

94.60

1.84

6.10

28.38

15.43

21.36

263,130

25.5

15.3

BHP Billiton plc

BBL

Mining

8

79.31

2.19

6.10

28.38

12.94

-4.48

220,600

25.5

n/a

Compass Minerals

CMP

Mining

8

93.47

1.93

15.38

39.91

20.73

17.20

3,070

7.2

n/a

Royal Gold Inc.

RGLD

Mining

10

49.62

0.89

22.22

63.77

71.91

38.76

2,750

12.5

21.8

Averages for

5

Mining

8.2

70.11

1.61

12.18

40.34

31.12

25.44

99,000

18.0

16.7

Canadian Natural Res.

CNQ

Oil & Gas

10

50.30

0.60

2.74

12.40

20.79

14.11

54,730

23.0

n/a

CARBO Ceramics

CRR

Oil & Gas

10

123.97

0.65

11.11

23.53

36.46

27.78

2,850

16.1

14.3

Chevron Corp.

CVX

Oil & Gas

23

103.75

2.78

5.88

30.38

10.94

8.89

208,790

10.2

8.1

CNOOC Ltd.

CEO

Oil & Gas

5

228.34

2.31

2.23

32.37

14.01

21.63

102,000

25.9

n/a

ConocoPhillips

COP

Oil & Gas

11

77.87

3.39

20.00

34.65

10.22

15.88

111,330

12.7

12.2

Enbridge Inc.

ENB

Oil & Gas

16

59.90

3.27

15.29

74.52

22.78

8.04

23,080

11.8

9.8

ExxonMobil Corp.

XOM

Oil & Gas

28

85.53

2.06

4.76

28.30

13.75

13.01

425,850

8.8

7.1

Helmerich & Payne

HP

Oil & Gas

38

64.99

0.37

20.00

13.11

35.51

8.02

6,910

5.8

4.3

Imperial Oil Ltd.

IMO

Oil & Gas

18

51.94

0.84

14.74

16.45

19.60

-3.65

44,020

5.9

4.9

Murphy Oil Corp.

MUR

Oil & Gas

15

73.53

1.50

10.00

26.63

17.80

25.00

14,160

18.5

11.2

Noble Corp.

NE

Oil & Gas

7

44.71

1.21

2.51

17.84

14.80

67.39

11,210

43.9

n/a

Occidental Petroleum

OXY

Oil & Gas

9

101.97

1.80

21.05

33.09

18.34

19.73

82,880

17.9

11.4

Royal Dutch Shell plc A

[[RDS-A]]

Oil & Gas

5

72.25

4.65

5.00

51.22

11.01

n/a

N/A

24.8

n/a

Royal Dutch Shell plc B

[[RDS-B]]

Oil & Gas

5

72.12

4.66

5.00

51.22

10.99

n/a

N/A

24.8

n/a

Suncor Energy Inc.

SU

Oil & Gas

5

47.02

0.84

6.45

17.07

20.27

22.27

73,610

29.7

16.3

Averages for

15

Oil & Gas

13.7

83.88

2.06

9.78

30.85

18.49

19.08

89,340

18.7

9.9

Averages for

35

Resources

14.9

71.21

1.84

10.43

31.90

19.81

16.57

54,803

16.8

10.9

Averages for

447

CCC Co's

16.7

47.91

2.91

8.20

68.18

21.94

12.39

16,745

12.5

10.3


Summary

The Resources industries include companies that have established long histories of annual increases. Unlike the subjects of the first two articles in this series (MLPs and REITs), the taxation on these dividends is fairly straightforward, at the 15% (or lower) rate until at least the end of 2012. I expect that to be the case with future installments in this series that will focus on other industry/sector groups. As always, I welcome feedback in the Comments section below.

Next Up: Food, Beverage and Tobacco

Disclosure: I am long PX, RPM, ACI, XOM.

Source: Dividend Champions: Focus on Resources