Monday, February 14, 2011

Nineteen Consistent Dividend Growth Stocks raising distributions

Dividend investing is all the rage these days. One of the reasons is that dividend investors tend to earn the same amount of equity returns, but with lower risk and volatility. However, they should only seek safe dividends, which can grow at least as fast as inflation, so that they are not losing the purchasing power of their money over time. Particularly appealing are companies which have a record of consistent dividend increases. Companies that make a point of raising dividends every year will continue to do so and typically have a long record that’s built in with a remarkable degree or stability and predictability. When these companies announce a dividend increase, they show their confidence that the business model that has produced a long string of consecutive dividend increases is still working.

I have highlighted several companies, which have raised distributions for over five consecutive years, and which also announced dividend increases over the past week:

3M Company (MMM) , together with its subsidiaries, operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics; and Electro and Communications. The company raised its quarterly dividend by 4.80% to 55 cents/share. This marked the 53rd consecutive annual dividend increase for this dividend king. This dividend growth stock has managed to increase distributions by 6.10% per year over the past decade. Yield: 2.40% (analysis)

Diebold, Incorporated (DBD) provides integrated self-service delivery and security systems and services primarily to the financial, commercial, government, and retail markets worldwide. The company raised its quarterly dividend by 3.70% to 28 cents/share. This marked the 58th consecutive annual dividend increase for this dividend king. This dividend growth stock has managed to increase distributions by 5.70% per year over the past decade. Yield: 3.50%

Parker Hannifin Corporation (PH) manufactures fluid power systems, electromechanical controls, and related components. The company raised its quarterly dividend by 10.30% to 32 cents/share. This marked the 55th consecutive annual dividend increase for this dividend champion. This dividend growth stock has managed to increase distributions by 9% per year over the past decade. Yield: 1.40%

Beckman Coulter, Inc. (BEC) provides biomedical testing instrument systems, tests, and supplies for clinical laboratories worldwide. The company raised its quarterly dividend by 5.60% to 19 cents/share. This marked the 18th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 8.40% per year over the past decade. Unfortunately, the company’s dividend history will be cut short because it is being acquired by Danaher (DHR). Yield: 0.90%

Bemis Company, Inc. (BMS) manufactures and sells flexible packaging products and pressure sensitive materials in the United States, Canada, Mexico, South America, Europe, and Asia. The company raised its quarterly dividend by 4.40% to 24 cents/share. This marked the 28th consecutive annual dividend increase for this dividend aristocrat. This dividend growth stock has managed to increase distributions by 6.70% per year over the past decade. Yield: 2.90% (analysis)

Pitney Bowes Inc. (PBI) provides mail processing equipment and integrated mail solutions in the United States and internationally. The company raised its quarterly dividend by 1.40% to 37 cents/share. This marked the 29th consecutive annual dividend increase for this dividend aristocrat. This dividend growth stock has managed to increase distributions by 2.50% per year over the past decade. Yield: 5.90%

Sigma-Aldrich Corporation (SIAL), together with its subsidiaries, develops, manufactures, purchases, and distributes a range of chemicals, biochemicals, and equipment worldwide. The company raised its quarterly dividend by 12.50% to 18 cents/share. This marked the 35th consecutive annual dividend increase for this dividend aristocrat. This dividend growth stock has managed to increase distributions by 15.20% per year over the past decade. Yield: 1.20%

Thomson Reuters Corporation (TRI) provides intelligent information for businesses and professionals in the financial, legal, tax and accounting, healthcare, science, and media markets worldwide. The company raised its quarterly dividend by 6.90% to 31 cents/share. This marked the tenth consecutive annual dividend increase for this international dividend achiever. This dividend growth stock has managed to increase distributions by 9.50% per year over the past five years. Yield: 3.10%

Digital Realty Trust, Inc. (DLR), a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. The company raised its quarterly dividend by 28.30% to 68 cents/share. This marked the seventh consecutive annual dividend increase for this dividend stock. Yield: 4.80%

SCANA Corporation (SCG) and its subsidiaries engage in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. The company raised its quarterly dividend by 2.10% to 48.50 cents/share. This marked the 11th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 5.30% per year over the past decade. Yield: 4.80%

AGL Resources Inc. (AGL), an energy services holding company, distributes natural gas primarily in Florida, Georgia, Maryland, New Jersey, Tennessee, and Virginia. It operates in four segments: Distribution Operations, Retail Energy Operations, Wholesale Services, and Energy Investments. The company raised its quarterly dividend by 2.30% to 45 cents/share. This marked the ninth consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 5% per year over the past decade. Yield: 4.80%

Auburn National Bancorporation, Inc. (AUBN) operates as a holding company for AuburnBank that offers various banking products and services in east Alabama. The company raised its quarterly dividend by 2.60% to 20 cents/share. This marked the tenth consecutive annual dividend increase for this dividend stock. This dividend growth stock has managed to increase distributions by 6.90% per year over the past decade. Yield: 4%

L-3 Communications Holdings, Inc. (LLL) provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally. The company raised its quarterly dividend by 12.50% to 45 cents/share. This marked the eight consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 26.20% per year over the past five years. Yield: 2.20%

Northeast Utilities (NU), a public utility holding company, engages in the energy delivery business for residential, commercial, and industrial customers in Connecticut, New Hampshire, and western Massachusetts. It operates in three segments: Electric Distribution, Natural Gas Distribution, and Electric Transmission. The company raised its quarterly dividend by 7.30% to 27.50 cents/share. This marked the 13th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 7.30% per year over the past decade. Yield: 3.30%

Owens & Minor, Inc. (OMI), together with its subsidiaries, distributes medical and surgical supplies, as well as provides supply chain management services in the United States. The company raised its quarterly dividend by 13% to 20 cents/share. This marked the 14th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 15.70% per year over the past decade. Yield: 2.60%

Church & Dwight Co. (CHD), Inc., together with its subsidiaries, develops, manufactures, and markets a range of household, personal care, and specialty products under various brand names in the United States and internationally. The company raised its quarterly dividend by 100% to 34 cents/share. This marked the 15th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 12.80% per year over the past decade. Yield: 1.90%

Infinity Property and Casualty Corporation (IPCC) , through its subsidiaries, provides personal automobile insurance with a concentration on nonstandard auto insurance in the United States The company raised its quarterly dividend by 28.60% to 18 cents/share. This marked the ninth consecutive annual dividend increase for this dividend stock. This dividend growth stock has managed to increase distributions by 18.50% per year over the past decade. Yield: 1.20%

Robert Half International Inc. (RHI) provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company raised its quarterly dividend by 7.70% to 14 cents/share. This marked the eighth consecutive annual dividend increase for this dividend stock. This dividend growth stock has managed to increase distributions by 13.20% per year over the past five years. Yield: 1.70%

Noble Corporation (NE) provides offshore contract drilling services for the oil and gas industry worldwide. The company raised its quarterly dividend to 13.47 cents/share. This marked the 7th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 43.90% per year over the past five years. Yield: 1.40%
Occidental Petroleum Corporation (OXY), together with its subsidiaries, operates as an oil and gas exploration and production company primarily in the United States. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. The company raised its quarterly dividend by 21.10% to 46 cents/share. This marked the tenth consecutive annual dividend increase for this dividend stock. This dividend growth stock has managed to increase distributions by 11.40% per year over the past decade. Yield: 1.90%

Full Disclosure: Long MMM

Relevant Articles:

- Dividend Achievers Offer Income Growth and Capital Appreciation
- Dividend Champions - The Best List for Dividend Investors
- Dividend growth stocks are attractive buyout targets
- Ten Dividend Stocks Beating Inflation

2 comments:

  1. Just added a minor position of DLR with its announced sharp increase in dividend payout. The yield is in the middle of it's 5 year history, so I figure average value at present, but hopefully, will reap future (dare I say it) dividends. I like the fact that it withstood the recent crisis. A pullback to much lower prices would be preferred, but that for now, a small position will have to do.

    ReplyDelete
  2. you should also start mentioning how likely they are to continue growing at this rate

    ReplyDelete

Questions or comments? You can reach out to me at my website address name at gmail dot com.

Popular Posts