Seeking Alpha
Value, long-term horizon, dividend investing, dividend growth investing
Profile| Send Message|
( followers)  

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 firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again.

Quiet Time Continues

After dividend increases that coincided with annual shareholder meetings in April or May, we started to see a drop-off in the pace of such announcements. Although there are still corporations that will raise their dividend between now and the end of August (which coincides with the "forward look" of about 11 weeks for this article), we'll probably continue to see fewer in the months ahead.

I have 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):

Company

Stock

No.

5/31

Div.

LY%

LY

Ann.

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

Birner Dental Mgmt

(NASDAQ:BDMS)

8

16.90

5.21

10.00

6/22/11

0.88

Darden Restaurants

(NYSE:DRI)

7

51.73

3.32

34.38

7/7/11

1.72

General Mills

(NYSE:GIS)

8

38.28

3.19

8.93

7/7/11

1.22

Ecology & Environment

(NASDAQ:EEI)

6

13.21

3.63

9.09

7/14/11

0.48

Enbridge Energy Part.

(NYSE:EEP)

5

29.24

7.28

3.70

8/3/11

2.13

Energy Transfer Eq. LP

(NYSE:ETE)

7

36.33

6.88

11.61

8/3/11

2.50

Landstar System Inc.

(NASDAQ:LSTR)

7

52.70

0.42

10.00

8/4/11

0.22

Altera Corp.

(NASDAQ:ALTR)

5

33.41

0.96

33.33

8/8/11

0.32

Duke Energy Corp.

(NYSE:DUK)

7

21.98

4.55

2.04

8/10/11

1.00

United Financial Banc.

(NASDAQ:UBNK)

6

13.78

2.61

12.50

8/10/11

0.36

Lindsay Corp.

(NYSE:LNN)

9

55.65

0.65

5.88

8/15/11

0.36

National CineMedia Inc.

(NASDAQ:NCMI)

5

13.49

6.52

10.00

8/16/11

0.88

Ritchie Brothers Auct.

(NYSE:RBA)

9

19.82

2.27

7.14

8/17/11

0.45

Cummins Inc.

(NYSE:CMI)

6

96.95

1.65

52.38

8/18/11

1.60

Ryder System

(NYSE:R)

7

43.21

2.68

7.41

8/18/11

1.16

Steris Corp.

(NYSE:STE)

7

29.86

2.28

13.33

8/19/11

0.68

Crane Company

(NYSE:CR)

7

37.89

2.74

13.04

8/29/11

1.04

Delta Natural Gas

(NASDAQ:DGAS)

7

19.05

3.67

2.94

8/30/11

0.70

ITC Holdings Corp.

(NYSE:ITC)

7

68.95

2.04

5.22

8/30/11

1.41

Westlake Chemical

(NYSE:WLK)

8

54.49

0.54

16.14

8/31/11

0.30

In addition, about two dozen MLPs (Master Limited Partnerships) among the Contenders and Challengers tend to raise their dividends each quarter, and would likely announce those increases in late July or early August. The following "Near-Challengers" (with four years of increases) are also expected to announce increases, qualifying them to join the Challengers listing:

Company

Symbol

Ex-Div

HEICO Corp.

(NYSE:HEI)

7/1/11

Petsmart Inc.

(NASDAQ:PETM)

7/27/11

Navios Maritime Partners

(NYSE:NMM)

8/3/11

Cablevision Systems

(NYSE:CVC)

8/17/11

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. I'm attaching the chart below.

(click to enlarge)

Source: Dividend Challengers: 20 Increases Expected In The Next 11 Weeks