Friday, June 10, 2011

28 Companies Expected to Increase Their Dividends in the Next 10 Weeks - Seeking Alpha


In compiling the Dividend Champions list (found here) 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.
Format Refined
With this article in the new twice-monthly format, I'm again extending the forward look to a period of about 10 weeks. The previous article appeared on May 26th and can be found here.
and that article extended the forward look from 60 days to more than nine weeks. But there were still some companies that seem to announce increases more than two months before the next Ex-Dividend Date, so I'm extending the “forward look” again. Of the 20 companies listed in the previous article, seven announced increases, including one – FedEx Corp. (FDX) – that graduated to Contender status with its 10th straight year of higher dividends. Based on last year's announcements, I'm expecting the following companies to announce dividend increases between now and the anniversary of their previous increase:
Dividend Champions (25 or more years):
No.
5/31
Qtrly
LY%
LY
Company
Symbol
Yrs
Price
Yield
Rate
Inc.
Ex-Div
Medtronic Inc.
33
40.70
2.21
0.2250
9.76
7/7/10
Helmerich & Payne Inc.
38
62.68
0.38
0.0600
20.00
8/11/10
Carlisle Companies
34
48.60
1.40
0.1700
6.25
8/13/10
Walgreen Company
35
43.63
1.60
0.1750
27.27
8/17/10
Dividend Contenders (10-24 years):
No.
5/31
Qtrly
LY%
LY
Company
Symbol
Yrs
Price
Yield
Rate
Inc.
Ex-Div
John Wiley & Sons Inc.
17
53.00
1.21
0.1600
14.29
7/2/10
A.O. Smith Corp.
17
41.47
1.35
0.1400
7.69
7/28/10
AptarGroup Inc.
17
53.40
1.35
0.1800
20.00
7/28/10
National Retail Prop.
21
25.78
5.90
0.3800
1.33
7/28/10
CARBO Ceramics
10
150.27
0.53
0.2000
11.11
7/30/10
Inergy LP
10
37.09
7.60
0.7050
1.44
8/4/10
Murphy Oil Corp.
15
68.89
1.60
0.2750
10.00
8/12/10
Alterra Capital Holdings
10
22.75
2.11
0.1200
20.00
8/13/10
Dividend Challengers (5-9 years):
No.
5/31
Qtrly
LY%
LY
Company
Symbol
Yrs
Price
Yield
Rate
Inc.
Ex-Div
Communications Sys.
8
18.40
3.26
0.1500
7.14
6/17/10
Darden Restaurants
6
50.65
2.53
0.3200
28.00
7/7/10
General Mills
7
39.77
2.82
0.2800
14.29
7/8/10
MSC Industrial Direct
8
69.51
1.27
0.2200
10.00
7/9/10
Astrazeneca plc
7
52.40
4.60
1.2050
15.31
8/4/10
Landstar System Inc.
6
47.32
0.42
0.0500
11.11
8/5/10
Duke Energy Corp.
6
18.75
5.23
0.2450
2.08
8/11/10
Lindsay Corp.
8
67.08
0.51
0.0850
6.25
8/13/10
Maxim Integrated Prod.
9
27.25
3.08
0.2100
5.00
8/18/10
Oil-Dri Corp. of America
8
22.28
2.87
0.1600
6.67
8/18/10
Ritchie Brothers Auction.
8
27.72
1.52
0.1050
5.00
8/18/10
Cummins Inc.
5
105.24
1.00
0.2625
50.00
8/19/10
Ryder System
6
55.00
1.96
0.2700
8.00
8/19/10
Steris Corp.
6
36.09
1.66
0.1500
36.36
8/20/10
I also anticipate that two companies in the Appendix (on the Note tab) –Altera Corp. (ALTR) and Enbridge Energy Partners LP (EEP) - will boost their dividends during this period, marking their fifth straight year of increases and promoting them to Challenger status. Both hiked their dividend last year with Ex-Dividend Dates in the first week of August.
There may be other companies that announce increases in the coming weeks, such as those that increase the payout on a quarterly or irregular basis. (Companies generally make dividend declarations anywhere from two days to six weeks before the Ex-Dividend Date.) Several MLPs (Master Limited Partnerships) tend to increase the payout each quarter, with the Ex-Dividend Dates in early February, May, August, and November. Not all of these companies will meet the strict standards of every investor, but they may be appropriate for portfolio diversification. Potential investors should do more research before committing funds.
Coming Up
This article is part of my regular schedule of submissions; the following are expected in the next month or so:
  • Overdue Dividend Increases: June 13. Date is aimed at preceding David Van Knapp's “Dividends in Danger?” series by a couple of days. Three companies from my May 26 article will be added to the “overdue” list since they declared the same payout for a fifth straight quarter.
  • Companies Expected to Increase Dividends: June 26
  • Dividend Champions Update: June 30. The spreadsheet and PDF will be updated after the market close and posted in their usual location (see first line of this article).
  • Dividend Champions: Smackdown XV: July 1
Note that the dates are when I am likely to submit the articles; SA may publish them on a slightly delayed basis. I may also submit one or two other articles during the month, depending on reader interest. Please feel free to list questions or suggestions in the Comment section below.

Disclosure: I am long MDT, DUK, R.

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