Many investors chose to focus on the General Motors (GM) IPO last week and on the moves of the Chinese Central Bank. Others kept speculating whether the strongest banks that have already repaid their TARP loans, such as Wells Fargo (WFC), JP Morgan (JPM) and US Bancorp (USB) would be allowed to raise dividends. As usual, I kept ignoring these sexy headlines and instead focused on the boring list of consistent dividend increasers, which kept announcing dividend hikes. Some of these companies are also dealing with the uncertainty behind the expiration of the advantageous tax treatment of qualified dividends by either paying distributions earlier or paying out a special dividend.
This week’s list of companies that have raised distributions for at least five years in a row and also announced dividend hikes last week include:
Brown-Forman Corporation (BF.B) engages in the manufacture, bottling, import, export, and marketing of alcoholic beverage brands. This dividend aristocrat raised its quarterly dividend by 6.70% to 32 cents/share. The company has consistently raised dividends for 27 years in a row. Historically the payment from the November declaration has been made in early January of the following calendar year. However, with the uncertainty surrounding the renewal of the current dividend tax rates which expire on December 31, 2010, the company chose to accelerate the cash payment, which will result in five cash payments for calendar 2010. Yield: 2% (analysis)
New Jersey Resources Corporation (NJR) provides retail and wholesale energy services. It operates in two segments, Natural Gas Distribution and Energy Services. This dividend achiever raised its quarterly dividends by 5.90% to 36 cents/share. This marked the sixteenth consecutive annual dividend increase for the company. Yield: 3.50%.
Campbell Soup Company (CPB), together with its subsidiaries, engages in the manufacture and marketing of branded convenience food products worldwide. The company raised its quarterly dividend by 5% to 29 cents/share. This was the seventh consecutive year of dividend increases for Campbell Soup. Yield: 3.40%
NSTAR (NST), through its subsidiaries, engages in the distribution, transmission, and sale of energy in Massachusetts. This dividend achiever announced a 6.3% increase in its quarterly dividend to 42.50 cents/share. The company has raised dividends for 13 years in a row. Yield: 4.10%
NIKE, Inc. (NKE) designs, develops, and markets footwear, apparel, equipment, and accessory products for men, women, and children worldwide. The company raised its quarterly dividend by 15% from 27 cents/share to 31 cents/share. This was the ninth consecutive annual dividend increase for Nike. Yield: 1.40%
The Laclede Group, Inc. (LG) operates as a public utility holding company. The company raised its quarterly dividend by 2.50% to 40.50 cents/share. This was the seventh consecutive annual dividend increase for Laclede. Yield: 4.60%
Donaldson Company, Inc. (DCI) engages in the manufacture and sale of filtration systems and replacement parts worldwide. The company operates in two segments, Engine Products and Industrial Products. This dividend champion raised its quarterly distribution by 4% to 13 cents/ share. This was the second dividend increase this year, and marked the 25th consecutive annual dividend increase for the company. Yield: 1%
Royal Gold, Inc. (RGLD), together with its subsidiaries, acquires and operates precious metals royalties. The company raised its quarterly dividend by 22% to 11 cents/share. This was the sixth consecutive annual dividend increase for this gold stock. Yield: 0.90%
A consistent history of dividend growth is just one of the prerequisites behind identifying the best dividend stocks. Other factors include competitive advantages and valuation to name a few.
Full Disclosure: Long BF.B
- TARP is bad for dividend investors
- Best Dividends Stocks for the Long Run
- Dividend Aristocrats List for 2010
- Will higher taxes bring dividend stocks down?
The stock market has been showing signs of weakness this quarter. Little did I know that the stock market will go down so quickly after I wr...
I like to keep my investing simple. I purchase shares in companies I believe to be attractively valued , when I see a track record of raisin...
Two of the companies I own announced their intentions to hike their dividends . As a dividend growth investor, this is always good news. The...
One of the many questions I receive from readers relates to time spent managing my dividend portfolio . The truth is that I have multiple s...
The biggest advantage of dividend growth investing is the ability to set a goal, and track progress towards that goal. This is because divid...
I believe that time spent learning the ropes behind dividend growth investing is worth it. In this article I will discuss why I believe tha...
This is the second and final part on the article from Tuesday. Please refer to the first part that was posted on Tuesday. I believe that...
There are different ways to weight a dividend portfolio. I am going to examine the three most popular methods in this article. Then I am goi...
There are many risks to investing . One of the major risks that could ruin a portfolio’s chances of generating adequate dividends are p...
One criticism of Dividend Growth Investing is that it focuses exclusively on large cap stocks. The common complaint is that if you buy a sm...