Seven Companies Likely to Boost Dividends in August

by: David Fish

One nice thing about compiling the Dividend Champions list of companies that have paid higher dividends for at least 25 straight years (which can be found here) is that 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, we can say with some confidence that they are likely to do so again.

Consequently, I'm expecting the following companies to announce dividend increases in the month of August. (Dates in parentheses are the Ex-Dividend Dates of last year's increases).

Carlisle Companies (NYSE:CSL) (8/12/09) Carlisle increased its quarterly dividend 3.23% last year, from 15.5¢ to 16¢ per share, marking the 33rd straight year of increases. Over the previous five years, it had increased its payout by a Compound Annual Growth Rate (CAGR) of 6.0%, and by 6.4% over the previous ten years. The yield at June 30 was 1.77%.

Dover Corp. (NYSE:DOV) (8/27/09) Logging its 54th consecutive year of higher dividends, Dover increased its quarterly dividend by 4.0%, from 25¢ to 26¢ per share. Its 5- and 10-year dividend increase CAGRs were 10.8% and 8.8%, respectively. The yield at June 30 was 2.49%.

Connecticut Water Service (NASDAQ:CTWS) (8/28/09) CTWS increased its payout for the 40th straight year by boosting the quarterly dividend by 2.25%, from 22.25¢ to 22.75¢ per share. The CAGR of its previous 5- and 10-year increases were 1.5% and 1.4%, respectively. The June 30 yield was 4.33%.

MGE Energy (NASDAQ:MGEE) (8/28/09) The former Madison Gas & Electric boosted its quarterly payout last year by 1.85%, from 36.17¢ to 36.84¢ per share, which provided as 4.09% yield at June 30. Its 5- and 10-year CAGRs were 1.4% and 1.2%, respectively.

Nordson Corp. (NASDAQ:NDSN) (8/28/09) This machinery company increased its payout for the 46th straight year by boosting its quarterly dividend by 4.11%, from 18.25¢ to 19¢ per share. Through 2009, its 5- and 10-year dividend increase CAGR were 3.4% and 4.4%, respectively. The yield at June 30 was 1.36%.

In addition to these five Champions, two Contenders (15-24 years) would typically increase their dividends in August:

Harleysville Savings (NASDAQ:HARL) (8/3/09) Harleysville boosted its quarterly payout by 5.56%, from 18¢ to 19¢ per share, marking the 22nd straight year of increases. The yield at June 30 was 4.97%.

Badger Meter (NYSE:BMI) (8/28/09) BMI raised its quarterly dividend by 9.09%, from 11¢ to 12¢ per share, its 17th straight annual increase. The yield at June 30 was 1.24%.

Obviously, not all of these companies meet the strict yield or percentage increase standards of some investors, but they may be appropriate for portfolio diversification. As always, potential investors should do due diligence before committing funds.

Disclosure: Author owns none of the companies above, but does own 28 or 100 Dividend Champions and 11 of 81 Contenders