Dividend Champions: 12 Increases Expected By August 31

by: David Fish
Summary

Pace of Increases picks up in August.

American States Water looks to extend longest streak.

Dover poised to complete six decades of increases.

In compiling the Dividend Champions list 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. I have separated the Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years) into distinct groupings, so please look for the other articles, which I hope will be published about the same time. Note that "CCC" refers to the combination of Champions, Contenders, and Challengers.

Summer Lull Continues

The much slower stream of dividend increase announcements that I mentioned last month has continued during June and will be with us for another month or two, when fewer payouts are boosted. But the number of such announcements for all Champions, Contenders, Challengers, and Near-Challengers expected by the end of August has increased to 72 from just 54 expected by the end of July, still well below the 100 or more in prior months. The pace should pick up again in the Fall and typically reaches a peak in the fourth and first quarters.

The table below coincides with the usual "forward look" of about 11 weeks for this article. 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 Champions (25 or more years):

Company

Ticker

No.

5/29

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Medtronic plc

MDT

37

76.32

1.60

8.93

7/1/14

1.22

8.3

Bowl America Class A

BWL.A

43

14.82

4.59

3.03

7/9/14

0.68

1.7

National Retail Properties

NNN

25

37.51

4.48

3.70

7/29/14

1.68

1.9

American States Water

AWR

60

38.43

2.22

5.19

8/13/14

0.85

10.4

Helmerich & Payne Inc.

HP

42

72.99

3.77

10.00

8/13/14

2.75

67.3

Carlisle Companies

CSL

38

99.15

1.01

13.64

8/14/14

1.00

8.3

Walgreens Boots Alliance

WBA

39

85.84

1.57

7.14

8/19/14

1.35

21.2

Nordson Corp.

NDSN

51

80.91

1.09

22.22

8/22/14

0.88

16.8

Dover Corp.

DOV

59

75.40

2.12

6.67

8/27/14

1.60

12.7

MGE Energy Inc.

MGEE

39

38.73

2.92

3.96

8/27/14

1.13

2.6

Conn. Water Service

CTWS

45

35.25

2.92

4.04

8/28/14

1.03

2.3

Computer Services Inc.

OTCQX:CSVI

43

42.50

2.07

37.50

8/28/14

0.88

16.1

MR=Most Recent; LY=Last Year; DGR=Dividend Growth Rate through 2014

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.

Disclosure: The author is long WBA. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.