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.
More Happy Holidays
As mentioned last time, I've modified the Expected Increase series to reflect a more SA-friendly format by separating the Champions, Contenders, and Challengers into distinct groupings, so please look for the other articles. No less than five of the companies below are likely to record their tenth straight year of increases, promoting them to Contender status.
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 Challengers (5-9 years):
No. | 10/31 | LY% | LY | ||||
Company | Symbol | Yrs | Price | Yield | Rate | Inc. | Ex-Div |
Nike Inc. | (NKE) | 9 | 96.35 | 1.29 | 0.3100 | 14.81 | 12/2/10 |
Laclede Group Inc. | (LG) | 8 | 40.12 | 4.04 | 0.4050 | 2.53 | 12/8/10 |
Landauer Inc. | (LDR) | 9 | 51.25 | 4.29 | 0.5500 | 2.23 | 12/8/10 |
J&J Snack Foods Corp. | (JJSF) | 7 | 51.55 | 0.91 | 0.1175 | 9.30 | 12/13/10 |
Campbell Soup Co. | (CPB) | 7 | 33.25 | 3.49 | 0.2900 | 5.45 | 12/23/10 |
Axis Capital Holdings Ltd. | (AXS) | 9 | 31.35 | 2.93 | 0.2300 | 9.52 | 12/29/10 |
Edison International | (EIX) | 8 | 40.60 | 3.15 | 0.3200 | 1.59 | 12/29/10 |
Andersons Inc. (The) | (ANDE) | 9 | 36.92 | 1.19 | 0.1100 | 22.22 | 12/30/10 |
OGE Energy Corp. | (OGE) | 5 | 51.74 | 2.90 | 0.3750 | 3.45 | 1/6/11 |
RGC Resources Inc. | (RGCO) | 8 | 17.96 | 3.79 | 0.1700 | 3.03 | 1/12/11 |
Shaw Communications Inc. | (SJR) | 9 | 20.27 | 4.54 | 0.0767 | 5.01 | 1/12/11 |
CVS Caremark | (CVS) | 8 | 36.33 | 1.38 | 0.1250 | 42.86 | 1/19/11 |
Robbins & Myers Inc. | (RBN) | 5 | 44.69 | 0.40 | 0.0450 | 5.88 | 1/19/11 |
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.
Please feel free to ask questions or make suggestions in the Comments section below.
Disclosure: I am long EIX, CVS.
