7 Companies Raising Dividends In This Tough Market

In a down-market when many people are rushing to buy gold, I already have mine. No, not that kind, but something much better! A growing stream of dividend income from solid companies. While everyone else is panicked about their portfolio's decline, I see a downturn as an incredible buying opportunity.

Below are several select companies that recently announced dividend increases:

• Illinois Tool Works (ITW) Boosts Dividend 11% to $0.31/Share
• Badger Meter (BMI) Increases Dividend 22% to $0.11/Share
• Nordic American Tanker Shipping (NAT) Raises Qtr. Dividend 36% to $1.60/Share
• Ritchie Bros. Auctioneers (RBA) Boosts Qtr. Dividend by 13% to $0.09/Share
• Quality Systems (QSII) Increases Qtr. Dividend 20% to $0.30/Share
• Dover (DOV) Raises Qtr. Dividend 25% to $0.25/Share
• ITT (ITT) Boosts Qtr. Dividend by 25% to $0.175/Share

After running these companies through my D4L-PreScreen.xls model, none of the companies above warranted additional consideration based on their NPV of MMA Differential. ITW was the closet with a NPV of MMA Differential of $3,642, well short of the $7,500 I require from a company that is an Achiever, but not an Aristrocrat.

Disclosure: No position in any of the aforementioned stocks.

Comments

[Steven Hansen:]

Richie Bros increases dividend to 9 cents? Let me run down and buy a whole sack of this stock. Seriously, Richie Bros doing well is not good news for our economic engine.

2008 Aug 15 10:32 AM

[moneysurf:]

I don't understand why a company doing well is not a good news for economic search engine.

2008 Aug 15 10:38 AM

[sumosama:]

Good article...thank you!

2008 Aug 15 11:16 AM

[notsosmart:]

mention the yields.i know they fluctuate but app.is ok. after all the real inflation rate for our 5 daily needs is app. 15-16%.i dont think that even count the reduction of weights & measurements in the everyday items we buy.

2008 Aug 15 11:39 AM

[Cousin Calvin:]

Notso, the yield on NAT is over 16% with a PE of 25. The others mentioned have NOW account yields.

2008 Aug 15 12:25 PM

[Cousin Calvin:]

Similar to NAT is Frontline, FRO. At the current price the trailing yield is over 19%. Earnings are reported on 8/29. I'm GUESSING (hoping) that the dividend will also increase beyond the $2.75 level. PE is less than 7.

2008 Aug 15 12:31 PM

[jmegchel:]

Nice, but not much help at the moment. Are there no companies that it WOULD be smart to buy at the moment? If not, how about posting another article when you can tell us about companies that we could actually buy? Thanks.

2008 Aug 15 01:48 PM

[notsosmart:]

who would know if anything is a smrt buy now or in the near future.its all become a game.

2008 Aug 15 02:38 PM

[rrgcsfb:]

Enerplus (ERF) raises distribution by 12%

Given the strength in commodity prices,
the performance of our operations and the health of our balance sheet, we will be increasing the monthly cash distribution to unitholders by 12% to $0.47 per unit per month effective with the September 20, 2008 cash distribution payment.

2008 Aug 15 04:14 PM

[Steven Hansen:]

Sajjad, Richie Bros are bottom feeders - they sell off assets of distressed companies or items surplus to production.

2008 Aug 18 06:10 AM

[mkreisel:]

WFC recently raised its dividend and has Buffett as its largest shareholder.

Buy, or not to buy?

2008 Aug 18 02:59 PM