Seven Companies That Raised Their Dividends, Despite Market Turmoil

When most people hear the phrase “missed opportunities" they tend to reflect on past events and what could have been. By nature I am forward looking, so "missed opportunities" for me is the present and the future.

At some point in the future, will we look back on our actions today and refer to them as our greatest missed opportunity? There is a lot of fear in the market. Not all companies are created the same. While the market roars as a bear to frighten the weak, some prominent companies stand strong.

Below are seven companies that recently flexed their muscles by raising their cash dividend:

• Tyco Electronics (TEL) Ups Quarterly Dividend 14% to $0.16/Share (2.31% yield)
  
• National Semiconductor (NSM) Raises Quarterly Dividend 33% to $0.08/Share (1.86% yield)
• Lockheed Martin (LMT) Boosts Quarterly Dividend 36% to $0.57/Share (2.08%)
  
• Campbell Soup (CPB) Increases Quarterly Dividend 14% to $0.25/Share (2.59%)
• Accenture (ACN) Ups Quarterly Dividend 19% to $0.50/Share (1.32%)
• McDonald's (MCD) Raises Dividend 33% to $0.50/Share (3.14%)
• CLARCOR (CLC) Boosts Quarterly Dividend 12.5% to $0.09/Share (0.85%)

After running these companies through my D4L-PreScreen.xls model, LMT with a NPV of MMA Differential of $5,412 was interesting, but cut its dividend by 50% in 2000. I hold MCD and it has performed well. However, I am not currently adding to my position due to its valuation. None of the others achieved the necessary NPV of MMA Differential to justify a full evaluation.

Disclosure: Long MCD.

Comments

[Edward J. R...:]

Accenture (ACN) is excellent value here. They have performed extremely well in these difficult times and the outlook for their services remains strong. I also own MCD - agree with your comments there.

Edward Roche, President Freedom Mountain Investments - holder of ACN and MCD in individual and managed accounts

2008 Oct 02 08:21 AM

[atavist.avatar:]

Except for Mac most of these companies provide low yields. Would have been nice to know PEs.

2008 Oct 02 09:15 AM

[tipalia:]

it s still nice to know which companies can raise their dividend in this tough environment Atavist. And who knows what yield they ll have ,at today s cost, in 10 years from now. But for the time being,if you need the cash,I agree with you you must look somewhere else.There are a lot of good ,sound companies that have higher yield indeed. I own ACN mostly for growth and I don t mind the small dividend which is starting to be interesting since I bought those shares at an average price of 34$.

2008 Oct 02 11:47 AM

[User 265729:]

I can understand Campbell's... We'll all be in a soup line sooner or later.

2008 Oct 02 10:52 PM