10 Companies Accelerating Their Dividend Growth

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Includes: ABT, BMI, CASY, CHD, CL, CLX, GWW, ROST, TGT, WBA
by: The Dividend Pig

What could be better than finding a company that consistently raises its dividends? Finding a company that is consistently giving its shareholders larger raises!

Since year by year dividend growth can vary, I like to use the average growth over a 10 year, 5 year, and 1 year timeframe. I like to see companies whose average dividend growth rate is increasing in each time period, which shows that dividend growth is accelerating.

Here are 10 companies that are rewarding shareholders with larger raises over the years.

Walgreens
(WAG) together with its subsidiaries, operates a drugstore chain in the United States. The company has increased its dividend for 35 consecutive years, and currently yields 1.6%.

Time Frame Dividend Growth Rate
10 year 17.9%
5 year 21.4%
1 year 26%
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Abbott Labs (NYSE:ABT) is engaged in discovery, development, manufacture, and sale of diversified line of healthcare products. It has four segments: Pharmaceutical, Diagnostic, Nutritional, and Vascular. The company has raised it's dividend for 39 consecutive years, and currently yields 3.8%.

Time Frame Dividend Growth Rate
10 year 8.49%
5 year 10.6%
1 year 10.3%
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Colgate Palmolive Company (NYSE:CL) is a consumer products company. Colgate’s products are marketed in over 200 countries and territories. The Company manages its business in two product segments: Oral, Personal and Home Care, and Pet Nutrition. CL has raised dividends for 48 consecutive years, and currently yields 2.9%.

Time Frame Dividend Growth Rate
10 year 12.8%
5 year 12.9%
1 year 18%
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W.W. Grainger Inc. (NYSE:GWW) is a distributor of maintenance, repair and operating supplies and other related products and services used by businesses and institutions primarily in the United States and Canada. The company has paid an increasing dividend for 39 consecutive years, and currently yields 1.4%.

Time Frame Dividend Growth Rate
10 year 12.7%
5 year 17%
1 year 16.9%
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The Clorox Company
(NYSE:CLX) is a manufacturer and marketer of consumer and institutional products. The Company sells its products primarily through mass merchandisers, grocery stores and other retail outlets. It markets some brand names, including its namesake bleach and cleaning products, Green Works Armor All and STP auto-care products, Fresh Step and Scoop Away cat litter, Kingsford charcoal, Brita water-filtration systems, Glad bags, and Burt’s Bees natural personal care products. CLX has 33 years of dividend increases behind it, and currently yields 3.18%. Note also that 2010's dividend increase was a bit below the 5 year average - hopefully the next few will make up for this.

Time Frame Dividend Growth Rate
10 year 10.6%
5 year 16%
1 year 9.4%
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Target Corporation
(NYSE:TGT) operates Target general merchandise stores with an assortment of general merchandise and food items. The company has increased its dividend for 43 consecutive years, and currently yields 2%.

Time Frame Dividend Growth Rate
10 year 15.9%
5 year 17.6%
1 year 23.5%
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Badger Meter Inc. (NYSE:BMI) is a manufacturer and marketer of products incorporating liquid flow measurement and control technologies serving markets worldwide. The Company’s products are used in a range of applications, including water, oil and chemicals. Its product lines fall into two categories: water applications and specialty applications. The company has increased distributions for 18 consecutive years, and currently yields 1.5%

Time Frame Dividend Growth Rate
10 year 8.39%
5 year 13.8%
1 year 13%
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Casey's General Stores Inc. (NASDAQ:CASY) operates convenience stores under the name Casey’s General Store, HandiMart and Just Diesel in nine Midwestern states, primarily Iowa, Missouri and Illinois. This dividend contender has raised distributions for 11 consecutive years, and currently yields 1.4%

Time Frame Dividend Growth Rate
10 year 19.7%
5 year 21.2%
1 year 28.1%
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Church and Dwight Co. (NYSE:CHD) Church & Dwight & Co., Inc. develops, manufactures and markets a range of household, personal care and specialty products. The Company operates in three business segments: Consumer Domestic, Consumer International and Specialty Products. Though you may not know Church and Dwight, you most definitely know their iconic brand, Arm & Hammer Baking Soda. This company has raised dividends for 15 consecutive years, and currently yields 1.7%.

Time Frame Dividend Growth Rate
10 year 13.9%
5 year 24.3%
1 year 34.8%
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Ross Stores Inc. (NASDAQ:ROST) operates two chains of off-price retail apparel and home accessories stores. As of January 30, 2010, the Company operated a total of 1,005 stores, mainly in the US. It is the countries second largest off-price retailer. ROST has raised dividends for 17 consecutive years, and currently yields 1.2%.

Time Frame Dividend Growth Rate
10 year 24.1%
5 year 27.8%
1 year 45.5%
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Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ABT over the next 72 hours.