Dividend Contenders: 25 Increases Expected By The End Of August

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Includes: BMI, BTI, COP, CR, DE, DGAS, DUK, EBMT, FTS, IMO, JW.A, LNN, LSTR, MUR, MXIM, PSBQ, R, RBA, SJM, SPAN, STE, TCP, TLP, VMI, WTR
by: David Fish
Summary

August to bring a surge in increases.

Will Aqua America become a Champion in 2016?

Can Deere and Wiley maintain their double-digit 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 Contenders (10-24 years):

Company

Ticker

No.

5/29

Div.

MR%

LY

Ann.

DGR

Name

Symbol

Yrs

Price

Yield

Inc.

Ex-Div

Div.

5-yr

Valmont Industries

VMI

13

124.45

1.21

50.00

6/25/14

1.50

17.4

Deere & Company

DE

11

93.68

2.56

17.65

6/26/14

2.40

14.7

John Wiley & Sons Inc.

JW.A

21

58.02

2.00

16.00

6/27/14

1.16

14.9

PSB Holdings Inc.

OTCQX:PSBQ

21

42.00

1.90

2.56

7/11/14

0.80

4.8

ConocoPhillips

COP

14

63.68

4.59

5.80

7/17/14

2.92

14.0

Transmontaigne Partners LP

TLP

10

39.36

6.76

0.76

7/29/14

2.66

2.3

TC Pipelines LP

TCP

15

63.90

5.26

3.70

8/1/14

3.36

2.8

Landstar System Inc.

LSTR

10

65.40

0.43

16.67

8/7/14

0.28

8.9

Span-America Medical Sys.

SPAN

16

18.72

3.21

7.14

8/12/14

0.60

9.4

Lindsay Corp.

LNN

12

80.54

1.34

3.85

8/13/14

1.08

27.9

Aqua America Inc.

WTR

23

26.32

2.51

8.55

8/13/14

0.66

7.6

J.M. Smucker Co.

SJM

17

118.55

2.16

10.34

8/13/14

2.56

12.2

Eagle Bancorp Montana Inc.

EBMT

15

10.90

2.75

3.45

8/13/14

0.30

1.7

Duke Energy Corp.

DUK

10

75.73

4.20

1.92

8/13/14

3.18

2.2

Murphy Oil Corp.

MUR

18

43.46

3.22

12.00

8/14/14

1.40

9.0

Ryder System

R

10

91.65

1.61

8.82

8/14/14

1.48

8.1

Maxim Integrated Products

MXIM

13

35.07

3.19

7.69

8/19/14

1.12

6.2

Ritchie Brothers Auctioneers

RBA

12

28.26

1.98

7.69

8/20/14

0.56

7.3

British American Tobacco plc

BTI

10

110.72

4.37

11.63

8/20/14

4.84

11.8

Steris Corp.

STE

10

66.83

1.38

9.52

8/22/14

0.92

16.5

Crane Company

CR

10

60.53

2.18

10.00

8/27/14

1.32

9.5

Badger Meter Inc.

BMI

22

64.52

1.18

5.56

8/27/14

0.76

10.0

Delta Natural Gas

DGAS

10

20.63

3.88

5.26

8/27/14

0.80

3.9

ITC Holdings Corp.

ITC

10

35.29

1.84

14.04

8/28/14

0.65

7.9

Imperial Oil Ltd.

IMO

22

39.21

1.22

2.56

8/28/14

0.48

5.1

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 COP,WTR. 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.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.