On Monday I published "18 Dividend Champions with Yields 50% Higher than 10-Year Treasuries." Dividend Champions are stocks that have increased their dividends for 25 or more consecutive years. There are 103 Champions at the moment, and 18 of the 103 (or 17%) qualified with yields of 3.375% or more. Ten-year Treasuries currently yield just 2.25%.
Today let's look at the next group of dividend-raising stocks, the Dividend Contenders. These are stocks with dividend increase streaks of 10 to 24 years. Of the 161 Dividend Challengers, 55 made the cut (34%), again meaning that their current yields are 3.375% or more.
As with the earlier article, in the table below I:
- Include the 5-year dividend growth rate (DGR).
- State the number of consecutive years each stock has increased its dividend payout.
- Omit stocks whose most recent declared increase was over 12 months ago.
- Call out stocks whose most recent increase was significantly lower than its 5-year DGR. (I used my judgment on REITs and MLPs, many of which raise their dividends multiple times per year.)
As to the last category-stocks whose most recent increase is significantly lower than their 5-year DGR-there are 31 of these, or 56% of the total that made the cut. (Among the Champions, the percentage was 63%.) As in the first article, I don't know if these rather large percentages suggest a long-term trend of shrinking dividend increases, are a hangover from the Great Recession and financial crisis, have some other cause, or are just random.
As always, thanks to David Fish for creating and maintaining the Dividend Champions document. It is the best source for dividend growth investors.
Dividend Contenders with Yields 50% Higher than 10-Year Treasuries
Stock | Ticker | Yield % | 5-Year DGR % | Years of Dividend Growth | Notes |
AGL Resources | 4.61 | 4.0 | 10 | Most recent increase = 2.2% | |
Alliance Resource Partners | 5.52 | 13.6 | 10 | MLP | |
Arrow Financial | 4.16 | 3.8 | 18 | ||
Artesian Resources | ATRNA | 4.04 | 4.4 | 14 | Most recent increase = 1.5% |
Atmos Energy | 4.49 | 1.5 | 24 | ||
Auburn National Bancorp | 3.82 | 4.6 | 11 | Most recent increase = 2.5% | |
Avista | 4.70 | 14.1 | 10 | Most recent increase = 5.5% | |
BHP Billiton plc | 3.39 | 22.9 | 10 | ADR (UK) Most recent increase = 8.9% | |
Buckeye Partners | 6.94 | 5.9 | 17 | MLP | |
Community Bank System | 3.81 | 5.4 | 19 | ||
ConocoPhillips | 3.45 | 12.9 | 11 | ||
Enterprise Products Partners | 4.78 | 6.0 | 15 | MLP | |
First Keystone | FKYS | 4.60 | 2.7 | 11 | |
First of Long Island | 3.55 | 14.6 | 16 | Most recent increase = 4.6% | |
Juniata Valley Financial | JUVF | 4.76 | 5.4 | 21 | |
Kinder Morgan Energy Partners | 5.21 | 7.2 | 15 | MLP Most recent increase run-rate = 3.5% | |
Landmark Bancorp | 4.11 | 6.7 | 11 | Most recent increase = 5.0% | |
Magellan Midstream Partners | 4.46 | 6.4 | 12 | MLP | |
Meredith | 4.65 | 12.4 | 18 | ||
Microchip Technology | 3.87 | 9.3 | 11 | Most recent increase = 0.3% | |
National Bankshares | 3.85 | 6.5 | 12 | ||
National Health Investors | 5.52 | 5.3 | 10 | REIT | |
National Retail Properties | 5.78 | 3.0 | 22 | REIT Most recent increase = 1.3% | |
NextEra Energy | 4.03 | 8.0 | 18 | ||
Nippon Telegraph & Telephone | 3.49 | 23.4 | 10 | ADR (Japan) Most recent increase = 18.9% | |
Northeast Indiana Bancorp | NIDB | 5.14 | 2.0 | 17 | |
Norwood Financial | 4.62 | 7.2 | 14 | Most recent increase = 3.5% | |
Novartis | 4.51 | 21.4 | 11 | ADR (Switzerland) Most recent increase = 4.6% | |
NSTAR | 3.84 | 7.0 | 14 | ||
NTT DoCoMo | 4.02 | 16.7 | 10 | ADR (Japan) | |
NuStar Energy | 7.20 | 4.2 | 11 | MLP | |
Omega Healthcare Investors | 8.05 | 10.1 | 10 | REIT Most recent increase = 2.5% | |
PartnerRe | 3.91 | 8.0 | 19 | Most recent increase = 3.3% | |
People's United Financial | 5.00 | 6.3 | 19 | Most recent increase = 3.3% | |
Plains All America Pipeline | 4.96 | 6.3 | 12 | MLP | |
PPL | 5.04 | 4.9 | 11 | Most recent increase = 2.9% | |
Realty Income | 4.73 | 2.7 | 18 | REIT | |
SCANA | 4.40 | 3.2 | 12 | Most recent increase = 2.1% | |
Shaw Communications | 4.73 | 29.1 | 10 | ADR (Canada) Most recent increase = 4.8% | |
Southern | 4.28 | 4.1 | 10 | ||
Southside Bancshares | 3.38 | 15.5 | 17 | Most recent increase = 5.9% | |
Sunoco Logistics | 4.30 | 9.8 | 11 | MLP | |
TC Pipelines | 6.63 | 5.5 | 12 | MLP Most recent increase = 2.7% | |
Teche Holding | 3.90 | 4.8 | 11 | Most recent increase = 1.4% | |
Thomson Reuters | 4.42 | 7.1 | 19 | ADR (Canada) Most recent increase = 3.2% | |
UGI | 3.68 | 8.1 | 24 | Most recent increase = 4.0% | |
Unilever NV | 3.76 | 8.7 | 12 | ADR (Netherlands) Most recent increase = 0.9% | |
Unilever plc | 3.85 | 7.7 | 12 | ADR (UK) Most recent increase = 0.9% | |
Unisource Energy | 4.68 | 14.9 | 13 | Most recent increase = 2.4% | |
Universal Health Realty | 6.46 | 1.4 | 23 | REIT Most recent increase = 0.8% | |
Urstadt Biddle Properties | 5.21 | 1.7 | 18 | REIT | |
Vector Group | 8.82 | 5.0 | 14 | ||
WP Carey | 4.86 | 3.3 | 15 | Most recent increase = 0.5% | |
Watsco | 3.47 | 18.6 | 11 | Most recent increase = 8.8% | |
Westwood Holdings | 3.82 | 26.9 | 11 | Most recent increase = 5.7% |
[Source: Dividend Champions, updated 2/29/2012.]
The usual fine print applies. These are not recommendations, and appearance on this list does not mean that these are necessarily good stocks for dividend investors. Dividend stocks-like any investments-should be matched to your own situation and goals. Being stocks, they are subject to systematic market risk. The bottom line is to do your own due diligence before investing in anything.
