Friday, July 1, 2011

Four Future Dividend Achievers Boosting Distributions

The dividend achievers index is comprised of companies based in the US, which have increased their annual dividends for ten or more consecutive years. I typically look for companies which have raised distributions for at least ten years in a row, before considering a stock for potential addition to my portfolio. My reasoning is that only a company which has a strong business model characterized by stable and growing earnings can afford to consistently increase dividends every year for one decade. However, I still try to keep ahead by getting acquainted with the companies which might be eligible for inclusion in the list a few years from now.


There were four companies which have raised dividends for over five years in a row, which also announced that their Boards have approved dividend hikes over the past week:

Energy Transfer Equity, L.P. (ETE), through its direct and indirect investments in the limited partner and general partner interests in Energy Transfer Partners, L.P., engages in midstream, intrastate, and interstate transportation of natural gas, as well as in storage of natural gas in the United States. The Board of Directors approved a quarterly distribution of $0.625 per unit , which represents an increase of 11.6% on an annualized basis. This master limited partnership has boosted distributions for five years in a row. Yield: 5.60%

General Mills, Inc. (GIS) engages in the manufacture and marketing of branded consumer foods worldwide. The company’s Board of Directors approved an 8.90 % dividend increase to 30.50 cents/share. This dividend stock has raised distributions for 8 years in a row. Yield: 3.30%
Oil-Dri Corporation of America (ODC) engages in the development, manufacture, and marketing of sorbent products in the United States and internationally. The company’s Board of Directors approved a 6.30% dividend increase to 17 cents/share. This dividend stock has raised distributions for 9 years in a row. Yield: 3.20%

Darden Restaurants, Inc. (DRI), through its subsidiaries, owns, operates, and franchises full service restaurants in the United States and Canada. The company’s Board of Directors approved a 34.40% dividend increase to 43 cents/share. This dividend stock has raised distributions for 7 years in a row. Yield: 3.50%

Full Disclosure: None

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1 comment:

  1. Long on ETP! I need to look closely at the other 3 mentioned in your post!

    ReplyDelete

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