Friday, January 8, 2010

3 dividend increases, more expected in January

Standard & Poor’s just reported that 2009 was the worst year for dividends, with the number of dividend increases falling by 36% to 1191. The number of companies slashing dividends rose by 631% to 804 issues. After taking a big bath in 2009 however, dividends are expected to have a stellar year in 2010. Several companies kicked off the new year with dividend raises. I have also highlighted several companies which have a long track record of consistent dividend growth which are expected to boost distributions in January.

Pentair, Inc. (PNR), which is a diversified industrial manufacturing company primarily in the United States, Europe, and Asia., increased its quarterly dividend by 5.60% to 19 cents per share. Pentair, Inc. is a dividend champion, which has increased its quarterly dividend in each of the past thirty-four consecutive years. The stock currently yields 2.20%.

Robbins & Myers, Inc. (RBN), which supplies engineered equipment and systems for various applications in energy, industrial, chemical, and pharmaceutical markets worldwide, increased its quarterly dividend by 6.25% to 4.25 cents per share. This is the fourth consecutive dividend increase for Robbins & Myers, Inc. since 2006. The stock currently yields only 0.70%.

Calumet Specialty Products Partners, L.P. (CLMT), which produces and sells specialty hydrocarbon products in North America, increased its quarterly dividend by 1.10% to 45.50 cents per unit. This is the first distribution increase for Calumet Specialty Products Partners, L.P. since the company cut distributions in2008. The units currently yield 9.80%.

Five dividend aristocrats, which have a long track record of raising distributions, are expected to boost distributions in January as well.

Bemis (BMS) has raised its dividend every January over the past two years. This dividend growth stock has been raising dividends for 26 consecutive years and has a 5-year dividend growth rate of 6.60%. The stock currently yields 3%. (analysis)

Cintas (CTAS) has raised its dividend every January over the past seven years. This dividend growth stock has been raising dividends for 26 consecutive years and has a 5-year dividend growth rate of 10.10%. The stock yields 1.80%.

Consolidated Edison (ED) has raised its dividend every January over the past seven years. This dividend growth stock has been raising dividends for 35 consecutive years and has a 5-year dividend growth rate of 0.90%. The stock currently yields 5.30%. (analysis)

Family Dollar Stores (FDO) has raised its dividend every January over the past seven years. This dividend growth stock has been raising dividends for 33 consecutive years and has a 5-year dividend growth rate of 9.70%. The stock currently yields 2%. (analysis)

McGraw-Hill Companies (MHP) has raised its dividend every January over the past seven years. This dividend growth stock has been raising dividends for 36 consecutive years and has a 5-year dividend growth rate of 8.50%. The stock currently yields 2.70%. (analysis)

Full Disclosure: Long ED, FDO and MHP

Relevant Articles:

- What Dividend Growth Investing is all about?
- Dividend Aristocrats List for 2010
- Inflation Proof your income in retirement with Dividend Stocks
- Bristol-Myers Squibb, Two other companies raise dividends

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