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Fri. Jul. 24, 2009

Five Companies Willing and Capable To Raise Dividends *

The main focus of dividend investing is finding and buying stocks that will continue to raise their dividends in the future. In making this determination there are many factors to consider such as dividend payout ratio, debt levels, the company’s dividend policy and track record.

This week the dividend increase parade continues with several companies sharing higher cash dividends with their shareholders:

Stanley Works (SWK) is a worldwide producer of tools, hardware and specialty hardware for home improvement, consumer, industrial, and professional use. This past week increased its quarterly dividend 3.1% to $0.33/share. The dividend is payable on September 22, 2009 to shareholders of record as of the close of business on September 4, 2009. SWK is a Dividend Arstocrat and has increased its dividend for 42 consecutive years. The current yield based on the new dividend is 3.47%.

Lindsay Corporation (LNN) designs, makes and markets center pivot and lateral move irrigation systems. It also produces crash cushions, specialty barriers and diameter tubing, and offers outsource manufacturing. This past week the company increased its quarterly dividend 7% to $0.08/share. The dividend is payable August 31, 2009, to shareholders of record on August 17, 2009.  The current yield based on the new dividend is 0.91%.

El Paso Pipeline Partners (EPB) owns and operates natural gas transportation pipelines and storage assets. Earlier this week the company boosted its quarterly distribution by 12% to $0.33/unit. The distribution is payable August 14, 2009 to holders of record as of the close of business on July 31, 2009.  The current yield based on the new distribution is 7.06%.

TC PipeLines (TCLP)  has interests in three interstate natural gas pipelines, including a 46.5% stake in Great Lakes Gas Transmission LP.  Recently the company raised its cash distribution 3.5% to $0.73/unit. In a statement Russ Girling, chairman and CEO said, “Following the close of the acquisition of North Baja and the resetting of the incentive distribution rights, we are pleased to increase our distribution to unitholders. The addition of North Baja to our portfolio of high quality energy infrastructure assets further enhances our ability to deliver solid, sustainable cash distributions.”  The current yield based on the new distribution is 7.76%.

Park Electrochemical (PKE) designs, develops, manufactures, markets and sells digital and radio frequency/microwave printed circuit materials for telecommunications and Internet infrastructure. This last week the company increased its quarterly cash dividend 25% to $0.10/share. The dividend is payable November 5, 2009 to stockholders of record at the close of business on October 7, 2009.  The current yield based on the new dividend is 1.79%.

There are many companies that continue to consistently raise their dividends.  For stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: No position in the aforementioned stock. See a list of all my income holdings here.

(Photo Credit)


2 Responses to “Five Companies Willing and Capable To Raise Dividends *”

  1. Denis says:

    I like StanleyWorks, it is a great company with great business even if troubled by the crisis and the plummeted construction, it is a strong company able to give dividend and raise it.

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