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In compiling the Dividend Champions list (found here) I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these companies raise their payout about the same time every year, I can say with some confidence that they are likely to do so again.

New Year's Presents

As mentioned in the comments of the most recent installment in this series, I'm modifying the schedule to aim for a three-week frequency. Having found that monthly articles allowed some increases to “slip through the cracks,” I had started publishing the listings twice each month. But that seems to have been a tad too frequent, with too many companies carried over and not enough being “checked off,” so I hope the new scheduling works better.

I have also 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, which I hope will be published about the same time.

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.

11/30

LY%

LY

Company

Symbol

Yrs

Price

Yield

Rate

Inc.

Ex-Div

Shaw Communications Inc.

(SJR)

9

20.63

4.46

0.0767

5.01

1/12/11

CVS Caremark

(CVS)

8

38.84

1.29

0.1250

42.86

1/19/11

Robbins & Myers Inc.

(RBN)

5

53.20

0.34

0.0450

5.88

1/19/11

National Instruments Corp.

(NATI)

9

26.30

1.52

0.1000

15.38

2/2/11

Lake Shore Bancorp Inc.

(LSBK)

6

9.80

2.86

0.0700

16.67

2/3/11

Teekay LNG Partners LP

(TGP)

7

32.19

7.83

0.6300

5.00

2/3/11

Enterprise Bancorp Inc.

(EBTC)

7

14.44

2.91

0.1050

5.00

2/4/11

Pall Corp.

(PLL)

7

54.49

1.28

0.1750

9.38

2/4/11

Sensient Technologies

(SXT)

6

37.77

2.22

0.2100

5.00

2/7/11

Rollins Inc.

(ROL)

9

22.20

1.26

0.0700

16.67

2/8/11

JB Hunt Transport Services

(JBHT)

8

45.72

1.14

0.1300

8.33

2/11/11

CenterPoint Energy

(CNP)

6

19.90

3.97

0.1975

1.28

2/14/11

AGL Resources

(GAS)

9

41.23

4.37

0.4500

2.27

2/16/11

Avista Corp.

(AVA)

9

25.00

4.40

0.2750

10.00

2/16/11

Robert Half International

(RHI)

8

26.49

2.11

0.1400

7.69

2/23/11

Dun & Bradstreet Corp.

(DNB)

5

69.87

2.06

0.3600

2.86

2/24/11

Compass Minerals Int'l

(CMP)

8

76.65

2.35

0.4500

15.38

2/25/11

L-3 Communications

(LLL)

8

66.30

2.71

0.4500

12.50

2/25/11

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 (click to enlarge image), 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.

Coming Up

This article is part of my regular schedule of submissions; the following are expected in the next month or so:

  • Overdue Dividend Increases: December 22
  • Dividend Champions Update: December 30. 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 XXII: December 31
  • Companies Expected to Increase Dividends: January 15

Note that the dates are when I am likely to submit the articles; SA may publish them on a slightly delayed basis. I may also submit one or two other articles during the month, depending on reader interest. Please feel free to list questions or suggestions in the comments section below.

Source: Dividend Challengers: 18 Increases Expected By Late February