Top 10 Stocks With the Greatest Dividend Increases

 |  Includes: AFL, BPL, ED, HCP, KMP, LEG, MDP, MMP, PAA, SYY
by: Leif Peterson

Non-parametric concordance analysis was performed for dividend-paying stocks to estimate the proportion of dividend payouts that increased the most over last 13 years. The top 10 stocks, which raised dividends the most, are listed in columns of the table below along with Yahoo! key statistics - (click charts to expand): Click to enlarge

A plot of the dividends paid out by these 10 stocks looking back in time from July 15, 2011, is provided below:

Click to enlarge

It is clear that, for example, KMP, BPL, and PAA have strongly increased their dividend payout over the last several years. However, there is no guarantee that this trend will continue. Many companies have been buying back their own market capitalization, effectively reducing the number of shares outstanding. This increases their earnings per share. There will also be strong positive correlation in the price return of many of the energy MLPs, so a portfolio modeled after e.g. an efficient frontier would be enriched with only several of these assets.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.