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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.

New Format

This is the second article in the new twice-monthly format, which extends the forward look to a period of about eight weeks. The first appeared on April 13th and can be found here. Seven of the companies mentioned in that article have announced dividend increases, including the 55th consecutive annual increase by Procter & Gamble (NYSE:PG) and the 10th straight by Southern Company (NYSE:SO), which graduated to Contender status. As expected, the new twice-monthly format leads to some carry-over in the listings, but should help to avoid having companies failing to be mentioned simply because they fall in between monthly articles. Based on last year's announcements, I'm expecting the following companies to announce dividend increases between now and the anniversary of their previous increase:

Dividend Champions (25 or more years):

No.

3/31

Qtrly

LY%

LY

Company

Symbol

Yrs

Price

Yield

Rate

Inc.

Ex-Div

W.W. Grainger Inc.

GWW

39

137.68

1.57

0.5400

17.39

5/6/10

ExxonMobil Corp.

XOM

28

84.13

2.09

0.4400

4.76

5/11/10

Mine Safety Appliances

MSA

39

36.67

2.73

0.2500

4.17

5/20/10

NACCO Industries

NC

25

110.67

1.89

0.5225

0.97

5/27/10

Weyco Group Inc.

WEYS

29

24.46

2.62

0.1600

6.67

5/27/10

Johnson & Johnson

JNJ

48

59.25

3.65

0.5400

10.20

5/28/10

PepsiCo Inc.

PEP

38

64.41

2.98

0.4800

6.67

6/2/10

Dividend Contenders (10-24 years):

No.

3/31

Qtrly

LY%

LY

Company

Symbol

Yrs

Price

Yield

Rate

Inc.

Ex-Div

Tompkins Financial

TMP

24

41.55

3.27

0.3400

10.00

5/5/10

Int'l Business Machines

IBM

15

163.07

1.59

0.6500

18.18

5/6/10

Franklin Electric Co.

FELE

18

46.20

1.13

0.1300

4.00

5/11/10

Chevron Corp.

CVX

23

107.49

2.68

0.7200

5.88

5/17/10

Southside Bancshares

SBSI

16

21.40

3.18

0.1700

5.00

5/25/10

Factset Research Sys.

FDS

12

104.73

0.88

0.2300

15.00

5/26/10

Expeditors International

EXPD

16

50.15

0.80

0.2000

5.26

5/27/10

Cullen/Frost Bankers

CFR

17

59.02

3.05

0.4500

4.65

5/28/10

Imperial Oil Ltd.

IMO

18

51.07

0.85

0.1090

14.74

6/1/10

Community Bank System

CBU

17

24.27

3.96

0.2400

9.09

6/11/10

First Financial Corp.

THFF

22

33.24

2.77

0.4600

2.22

6/11/10

UGI Corp.

UGI

23

32.90

3.04

0.2500

25.00

6/11/10

Universal Health Realty

UHT

22

40.53

5.97

0.6050

0.83

6/14/10

Republic Bancorp KY

RBCAA

12

19.48

2.94

0.1430

8.33

6/16/10

SEI Investments Co.

SEIC

18

23.88

0.84

0.1000

11.11

6/17/10

Dividend Challengers (5-9 years):

No.

3/31

Qtrly

LY%

LY

Company

Symbol

Yrs

Price

Yield

Rate

Inc.

Ex-Div

Empresa Nacional/Elec

EOC

7

55.62

2.77

0.7690

45.64

4/29/10*

Costco Wholesale

COST

7

73.32

1.12

0.2050

13.89

5/5/10

AmeriGas Partners LP

APU

6

48.06

5.87

0.7050

5.22

5/6/10

United Community Bp

UCBA

5

7.25

6.07

0.1100

10.00

5/10/10

BOK Financial Corp.

BOKF

6

51.68

1.93

0.2500

4.17

5/12/10

Assurant Inc.

AIZ

7

38.51

1.66

0.1600

6.67

5/20/10

Analog Devices Inc.

ADI

8

39.38

2.23

0.2200

10.00

5/26/10

Arch Coal Inc.

ACI

7

36.04

1.11

0.1000

11.11

5/27/10

Northrop Grumman

NOC

7

62.71

3.00

0.4700

9.30

5/27/10

Knight Transportation

KNX

7

19.25

1.25

0.0600

20.00

6/2/10

Suncor Energy Inc.

SU

5

44.84

0.88

0.0990

6.45

6/2/10

Daktronics Inc.

DAKT

6

10.75

0.93

0.1000

5.26

6/10/10

W.R. Berkley Corp.

WRB

9

32.21

0.87

0.0700

16.67

6/10/10

Chesapeake Utilities

CPK

7

41.62

3.17

0.3300

4.76

6/11/10

Pharmaceutical ProdDev

PPDI

6

27.70

2.17

0.1500

5.71

6/11/10

FedEx Corp.

FDX

9

93.55

0.51

0.1200

9.09

6/15/10

Flowers Foods

FLO

9

27.23

2.94

0.2000

14.29

6/16/10

Greif Inc. A

GEF

7

65.41

2.57

0.4200

10.53

6/16/10

Communications Sys.

JCS

8

15.39

3.90

0.1500

7.14

6/17/10

Tiffany & Company

TIF

8

61.44

1.63

0.2500

25.00

6/17/10

*EOC is expected to have an Ex-Dividend Date in May this year.

There may be other companies that announce increases in the coming weeks, such as those that increase the payout on a quarterly or irregular basis. (Companies generally make dividend declarations anywhere from two days to six weeks before the Ex-Dividend Date.) Not all of these companies will meet the strict standards of every investor, but they may be appropriate for portfolio diversification. Potential investors should do more research before committing funds.

Coming Up

Articles on the following topics are expected in the next month or so:

Dividend Champions Update: April 29. The spreadsheet and PDF will be updated after the market close and posted in their usual location (see first line of this article).

Dividend Champions: Smackdown XIII: May 1

Companies Expected to Increase Dividends: May 10

Overdue Dividend Increases: May 13. Date is approximate as I will coordinate this article with David Van Knapp's “Dividends in Danger?” series.

Companies Expected to Increase Dividends: May 25.

I may also submit articles during the month depending on reader interest. Feel free to ask questions or make suggestions below.

Source: 42 Companies Expected to Increase Dividends in the Next 8 Weeks