Some dividend growth companies raise their dividends every year for many years. One example is Procter & Gamble (PG), which has raised its dividends for 55 years in a row.
Some dividend growth companies freeze their dividend for a year, but subsequently reinstate regular raises. David Fish, in his lists of Dividend Champions, Contenders, and Challengers, terms these companies "Frozen Angels." One example is First Financial Bankshares (FFIN), which has raised its dividends for 24 out of the last 25 years.
Some dividend growth companies freeze their dividends for long periods, without reinstating regular raises. Such companies have reached what I call a Dividend Plateau.
I found a total of 133 Dividend Plateau companies. A spreadsheet containing all of the data is available for free.
7 Dividend Plateau companies pay dividends annually. They are listed in the following table.
ACTUANT CORP-A | |
CIGNA CORP | |
LEUCADIA NATIONAL CORP | |
MANITOWOC COMPANY INC | |
NATIONAL PRESTO INDS INC | |
SHENANDOAH TELECOMMUNICATION | |
WHITE MOUNTAINS INSURANCE GP |
The longest annual plateau company is Actuant Corp, which has paid the same dividend for 7 years.
1 Dividend Plateau company pays dividends semi-annually. It is Universal Forest Products (UFPI).
1 Dividend Plateau company pays dividends monthly. It is Gas Natural Inc (EGAS).
124 Dividend Plateau companies pay dividends quarterly.
The longest quarterly plateau companies are listed in the following table. The third column is the number of repeated quarterly dividends.
EVEREST RE GROUP LTD | 20 | |
CABOT CORP | 21 | |
DELUXE CORP | 22 | |
TOTAL SYSTEM SERVICES INC | 22 | |
QUEST DIAGNOSTICS INC | 23 | |
PRECISION CASTPARTS CORP | 24 | |
ABERCROMBIE & FITCH CO-CL A | 26 | |
SUPERIOR INDUSTRIES INTL | 26 | |
NASH FINCH CO | 27 | |
ALLERGAN INC | 28 | |
BELDEN INC | 29 | |
MERCK & CO. INC. | 29 | |
SPX CORP | 31 | |
RR DONNELLEY & SONS CO | 34 | |
KANSAS CITY LIFE INS CO | 44 | |
TYSON FOODS INC-CL A | 50 | |
OLIN CORP | 51 | |
CON-WAY INC | 68 | |
PERKINELMER INC | 72 | |
PVH CORP | 80 |
An obvious question is, "Why would an investor be interested in a company that does not raise its dividends for such a long time?"
I suppose one answer is the hope that it will eventually reinstate regular raises, but after 80 quarters of the same dividend, I would not bet on PVH raising its dividend again.
The more likely answer is high current income. Many Dividend Plateau companies yield more than 4%. They are listed in the following table. The third column is the yield, as a percent of current price.
MERCK & CO. INC. | 4.0159 | |
FNB CORP | 4.0404 | |
UNITED BANKSHARES INC | 4.0513 | |
MERIDIAN BIOSCIENCE INC | 4.1966 | |
STATE AUTO FINANCIAL CORP | 4.2463 | |
AMERICAN NATIONAL INSURANCE | 4.2483 | |
EASTGROUP PROPERTIES INC | 4.2816 | |
OHIO VALLEY BANC CORP | 4.2967 | |
HARLEYSVILLE SVNGS FIN CORP | HARL | 4.3453 |
P G & E CORP | 4.3509 | |
TEEKAY CORP | 4.3939 | |
PUBLIC SERVICE ENTERPRISE GP | 4.4365 | |
PROGRESS ENERGY INC | PGN | 4.6573 |
FEDERATED INVESTORS INC-CL B | 4.6829 | |
CITIZENS HOLDING COMPANY | 4.7185 | |
GAS NATURAL INC | 4.8387 | |
PPL CORPORATION | 4.9106 | |
ELI LILLY & CO | 4.9797 | |
INTEGRYS ENERGY GROUP INC | 5.2247 | |
SUPERVALU INC | 5.3517 | |
PARK NATIONAL CORP | 5.4367 | |
TRANSALTA CORP | 5.4976 | |
OTTER TAIL CORP | 5.5869 | |
WASHINGTON REIT | 5.8398 | |
CORPORATE OFFICE PROPERTIES | 6.7845 | |
CENTURYLINK INC | 7.2014 | |
RR DONNELLEY & SONS CO | 7.3707 | |
ENERGY TRANSFER PARTNERS LP | 7.547 | |
UNITED COMMUNITY BANCORP | 7.5862 | |
COURIER CORP | 7.7135 | |
ITT CORP | 8.14 | |
STANDARD REGISTER CO | 12.8205 | |
INERGY LP | 16.0501 |
Higher return comes with higher risk, and investors should be wary of "chasing yield."
Please remember that this is only the beginning of the investment selection process. Many investors look at many other factors, such as Tweed Factor (from Norman Tweed), Confidence Factor (from David Fish), valuation via Fast Graphs (from Chuck Carnevale), etc. Do your own due diligence before you invest.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
