Dividends Value » PGN

List of 195 Dividend Stocks Every Income Investor Should Know About *

D4L — Wed, 09 Mar 2011 07:30:16 +0000

In 2009, I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Duplications in the above lists are eliminated and stocks are crossed out when I learn that they have either cut their dividend or fail to raise it. Here is some information on each of the constituent lists and some highlights on this year’s changes:

Dividend Aristocrats: Companies in the S&P 500 that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. As the name denotes, these are the best of the best – the blue blood stocks, including names like:

US Broad Dividend Achievers: Is comprised of companies incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased their annual regular dividend payments for the last ten or more consecutive years. Notable names on this list include:

The U.S. Dividend Champions: Is maintained by Dave Fish of MoneyPaper. The list is updated monthly and located at the The Drip Investing Resource Center. Like the Dividend Aristocrats above the Dividend Champions list looks for companies that have increased their dividend for at least 25 consecutive years. However, since S&P 500 membership is not a requirement, the list is larger than the Dividend Aristocrats list and also includes small-cap companies.

- Bowl America (BWL.A) | Yield: 5.0%
- Conn. Water Service (CTWS) | Yield: 3.8%
- Weyco Group Inc. (WEYS) | Yield: 2.6%

Membership in the Stock Ideas list declined in this edition, but it was significantly less than what was experience in the prior year. Overall the number of constituents fell to 198 in the 2011 Stock Ideas list from 218 stocks in the 2010 list. There were 319 stocks in 2009. There were 28 companies that fell off the list, including these prominent stocks:

- Eli Lilly & Co. (LLY)
- Paychex Inc. (PAYX)
- Progress Energy Inc. (PGN)
- SUPERVALU Inc. (SVU)
- Integrys Energy Group, Inc. (TEG)

The news wasn’t all bad. Partially offsetting the 28 companies that fell off the list were 5 new companies joining the Dividend Stock Ideas List. Some of these aren’t household names, not yet at least, but here are some names we will likely be seeing in the future:

You can see the entire Dividend Stock Idea List here. Remember, not every stock listed here is a great dividend investment, but virtually all great dividend investments are on this list.

Full Disclosure: Long ABT, KO, JNJ, MCD, MMM, PG, WMT, CVX, NUE, LLY, TEG. See a list of all my income holdings here.

(Photo Credit)

When To Sell A Dividend Stock *

D4L — Wed, 25 Aug 2010 07:30:47 +0000

As a long-term buy-and-hold investor, most of my evaluation efforts are aimed at determining when to buy a stock. Sometimes it is necessary to sell a stock and we need to be equally adept at identifying those times. I have stated on numerous occasions that I have one hard and fast sell rule for my individual dividend stocks: When an individual stock held as a dividend investment lowers its dividend, immediately sell it. However, there are other times it makes sense to sell. Consider these:

Significant Price Run-up Distorting Dividend Fundamentals

When you buy a dividend stock at a depressed level it will eventually return to its norm. However, at its normal level the dividend fundamentals could be so bad that you would be better off putting the money to work somewhere else. For this evaluation, my primary indicator is the NPV MMA Differential. When this metric goes negative, it in effect is saying you are better off putting the into a money market account for the next 20 years. When this occurs I look for a way to exit the position and retrieve my original investment, leaving the portion attributable to capital appreciation. Examples of stocks that I hold with these characteristics (or close to it) are:

Dividend Freeze Leading to Poor Dividend Fundamentals

When a company fails to raise its dividend (dividend freeze), the dividend fundamentals quickly deteriorate if its yield is low. It is easier to be patient when the yield is higher and the stock is still earning its way. However, as dividend growth investors, ultimately we expect our dividends to grow: Below are several stocks that failed to raise their dividends at the expected time:

Historical Performance Is Not Indicative Of Expected Results

Sometimes historical results are indicating the stock is a good investment, but something just doesn’t seem right. In situations like this there is probably a reason for the uneasiness and it is in our best interest to understand why we feel that way. Usually we know something that is not reflected in the financials.

This recently occurred with my AFLAC Inc. (AFL) position. I had been closely watching AFL since the time it first failed to raise its dividend. For a stock with a yield as low as AFL, dividend growth is paramount for its long-term success. My model’s calculated dividend growth rate was higher than what I expected going forward, at least for the near term. Its annual dividend growth has been declining since 2008, with 2010 growth only 3.6% (considering 2 dividends at $0.28 and two at $0.30). This was the only single digit increase in the last 10 years. When considering AFL’s most recent increase, the NPV MMA differential is under-performing its target. AFL has a large exposure to hybrid bonds (particularly European banks) and exposure to European sovereign debt. This makes them more risky than many other Financial Services companies. I have been looking to reallocate a portion of my financial Financial Services holdings (currently in excess of 10%) and I considered AFL one of my weaker financial stocks, so I sold it.

Substantial Change In The Business

Sometimes the world changes and what you were selling yesterday at a premium you can’t give away today. This phenomenon has been played out since the beginning of time. Rock gathers were replace with club makers who were replaced with spear makers who were replaced with arrow makers who were replaced with musket makers who were replaced with rifle makers, and so on. We see this happening today with the print media. Companies like Courier Corporation (CRRC) that publishes, prints and sells books, and Gannett Co., Inc. (GCI) an international media company that owns USA Today have struggled recently as people have moved from print media to online. Both companies were unable to continue the string of consecutive dividend increases.

Other times a catastrophe will shake a company to it very foundation. This has been most evident with the recent oil disaster in the Gulf. BP (BP) was not prepared for a situation like it faced. As the damage claims mounted, investors lost confidence in management to stop the oil flow and began to sell off the stock. A dividend cut soon followed.

Buy-And-Hold Not Buy-And-Forget

All investors need to be vigilant and keep a close watch on their investments. There are few certainties in an uncertain world. Things change and adjustments must be made. Buy-and-hold is a successful investment strategy; buy-and-forget is a recipe for disaster.

Full Disclosure: Long MMM, EMR, GPC, ITW, PAYX, LLY, PGN, TEG. See a list of all my income holdings here.

(Photo: sanja gjenero)

Increasing Dividend Yield Part I: Utilities *

D4L — Wed, 03 Mar 2010 11:30:05 +0000

This is the first installment in a multi-part series that looks at various options used by income investors to boost their yield while waiting for dividend growth to lift their portfolio’s overall yield-on-cost. This week we are looking at Utilities – those investments long considered as a safe harbor for “orphans and widows.”

What’s the difference between a Ponzi scheme and a utility company? Before I answer that question, let’s look at what a Ponzi scheme is. Wikipedia defines it as:

A fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

In effect, a Ponzi scheme pays yesterday’s investors with money from today’s investors. It works great until there aren’t enough new investors to pay the old investors. In a similar manner, most utility companies rely on new capital either in the form of debt or equity to fund investment and to pay dividends. Consider the following:

Atmos Energy Corp. (ATO) – Yield: 4.88%
Shares Outstanding: 2000 31m; 2009 92m
Long-Term Debt: 2000 363.2m; 2009 2,159.5m
Years of Negative Free Cash Flow: 5 of 10

Black Hills Corp. (BKH) – Yield: 5.10%
Shares Outstanding: 2000 22m; 2009 38m
Long-Term Debt: 1999 160.7m; 2008 719.2m
Years of Negative Free Cash Flow: 7 of 10

Connecticut Water Service Inc. (CTWS) – Yield: 4.01%
Shares Outstanding: 2000 7m; 2009 8m
Long-Term Debt: 1999 65.4m; 2008 92.2m
Years of Negative Free Cash Flow: 5 of 10

California Water Service Group (CWT) – Yield: 3.29%
Shares Outstanding: 2000 15m; 2009 20m
Long-Term Debt: 1999 156.6m; 2008 373.5m
Years of Negative Free Cash Flow: 10 of 10

Consolidated Edison, Inc. (ED) – Yield: 5.52%
Shares Outstanding: 2000 212m; 2009 276m
Long-Term Debt: 2000 5,415.4m; 2009 9,854.0m
Years of Negative Free Cash Flow: 6 of 10

MGE Energy Inc. (MGEE) – Yield: 4.40%
Shares Outstanding: 2000 16m; 2008 22m
Long-Term Debt: 1999 148.6m; 2008 272.5m
Years of Negative Free Cash Flow: 7 of 10

Middlesex Water Co. (MSEX) – Yield: 4.31%
Shares Outstanding: 2000 10m; 2008 13m
Long-Term Debt: 1999 82.5m; 2008 118.2m
Years of Negative Free Cash Flow: 10 of 10

Progress Energy, Inc. (PGN) – Yield: 6.48%
Shares Outstanding: 2000 157m; 2008 260m
Long-Term Debt: 1999 3028.6m; 2008 10,659.0m
Years of Negative Free Cash Flow: 5 of 10

Integrys Energy Group, Inc. (TEG) – Yield: 6.17%
Shares Outstanding: 2000 26m; 2008 76m
Long-Term Debt: 1999 634.5m; 2008 2,396.7m
Years of Negative Free Cash Flow: 10 of 10

Each of the above companies are growing their debt and shares outstanding while generating insufficient cash to fund their operating expenses, including normal capital replacements, in at least 5 of the last 10 years. For a company to consistently raise its dividends, it must generate strong cash flows sufficient to meet operating obligations and to service outstanding debt. When the day comes that these companies can not raise enough capital to fund the operating requirements, the first source of additional cash will likely come in the form of a lower or eliminated dividend.

So, back to the original question, what is the difference between a Ponzi scheme and a utility? The answer is simply disclosure. All the above information on these companies was made available via S.E.C. filings. Unlike Bernard Madoff, these companies are telling you exactly what they are doing, thus there is no intent to defraud. I own some of the companies above, but I won’t be rushing to add to increase my positions.

Caveat emptor!

Full Disclosure: Long ED, PGN, TEG. See a list of all my income holdings here.

(Photo Credit)

High-Yield Dividend Stocks: A Safer Approach *

D4L — Tue, 13 Oct 2009 10:30:47 +0000

When people learn that I am an income investor, the reaction is often a desire to discuss high-yield investments. The uninitiated commonly confuse income investing with high-yield investing. The two are not the same.

High-yield investing often carries a greater degree of risk than I am willing to accept. Recently, a reader alerted me to an article describing a 20-year study by the Schwab Center for Financial Research demonstrates that investments with the highest yields don’t necessarily provide the highest returns and offers a safer way to implement a high-yield approach. Here are some key excerpts from the article:

Stocks with the highest dividend yield haven’t provided the best total return.
Research found the highest-yielding stocks had twice as many dividend cuts as the other dividend-paying groups.
Price momentum is a stock indicator based on the idea that stocks that have been outperforming in the past will continue to do so.
A simple screen using the six-month price momentum strategy applied to the highest-yielding stocks can help you pick the best performers.
The screen is implemented using:
- Stocks in the S&P 500, 400 and 600 indexes.
- Dividend Yield and click the dividend yields greater than 1.5 times the S&P 500 yield.
- Capture analyst ratings.
- 6 Months Price Performance > Price Change.
- Sort by price performance and select the highest analyst ranked stocks within the top 45.

Since the article was very Schwab specific, I tried to generalize the above screen. If you have a Schwab account, please refer to the article for more specific instructions.

So, what does all this mean? If you are an income investor that enjoys trading instead of buy and hold, then this may be something you want to explore further. However, the 11.5% earned with this strategy vrs. the 10.73% for dividend stocks not in the highest yielding group hardly seems worth the effort.

For me, I will continue to focus on high-quality dividend stocks at lower, but growing, yields. However, for those looking to bump their yield a little, below are several Dividend Aristocrats and Achievers that are currently yielding more than 5%:

CenturyLink Inc. (CTL) – Aristocrat – Yield: 8.6%
Lilly Eli & Co. (LLY) – Aristocrat – Analysis -Yield: 6.0%
Integrys Energy Group Inc. (TEG) – Aristocrat – Yield: 7.8%
Consolidated Edison Inc. (ED) – Aristocrat – Yield: 5.8%
Progress Energy Inc. (PGN) – Achiever – Analysis – Yield: 6.5%
Realty Income Corp (O) – Achiever – Yield: 7.1%
Health Care Property Investors, Inc. (HCP) – Achiever – Yield: 6.8%
Cincinnati Financial Corp. (CINF) – Aristocrat – Yield: 6.2%
Leggett & Platt Inc. (LEG) – Aristocrat – Analysis – Yield: 5.7%
Pitney Bowes Inc. (PBI) – Aristocrat – Yield: 6.0%
AT&T Inc. (T) – Achiever – Yield: 6.2%
Black Hills Corp. (BKH) – Achiever – Yield: 5.8%
Capital City Bank Group (CCBG) – Achiever – Yield: 5.6%
Universal Health Realty Income Trust (UHT) – Achiever – Yield: 7.5%

This by no means is an endorsement of the above stocks. If you are looking for high-yields, you might lower your risk some by looking at a pool of stocks that have a long history of increasing their dividends.

Full Disclosure: Long CTL, LLY, TEG, ED, PGN, O, HCP . See a list of all my income holdings here.

(Photo: Steve Woods)

Are REITs and Utilities Good Dividend Investments? *

D4L — Wed, 29 Jul 2009 10:30:29 +0000

Dividend stocks. When you hear those two words what do you think of? Many people think of widows and orphans, along with their stereotypical investment in utility stocks. While others may think of maximizing income by finding the highest yielding stocks available like Real Estate Investment Trusts (REITs). But are utilities and REITs really good dividend investments?

I have been using my new evaluation model now for about a month now. So far, I have been quite pleased with the results. It is helping me to efficiently review a lot of dividend stocks and identify those with strong financials, that are likely to continue increasing their dividends and that are fairly priced. As I was developing and testing the new model I noticed it had a distinct dislike of Real Estate Investment Trusts (REITs) and utilities.

This got me to looking at these classes of stocks and asking the fundamental question, ‘Are they really quality dividend investments?’ Sure both are known to have above average yields, but as any knowledgeable dividend investor will tell you, current yield is just one small part of what makes up a great dividend stock.

I currently own three utilities and three REITs. In addition to those, I follow three other utilities and three other REITs. Let’s take a look at some of them and determine if they are good dividend investments:

REITs
Health Care Property Investors Inc. (HCP) – 0 Stars
Debt to Total Capital: 52%
Free Cash Flow Payout: 131%

Realty Income Corp (O) – 0 Stars
Debt to Total Capital: 47%
Free Cash Flow Payout: -65%

Federal Realty Investment Trust (FRT) – 2 Stars
Debt to Total Capital: 51%
Free Cash Flow Payout: 101%

Kimco Realty Corporation (KIM) – 2 Stars
Debt to Total Capital: 55%
Free Cash Flow Payout: -1753%

National Retail Properties, Inc. (NNN) – 4 Stars
Debt to Total Capital: 39%
Free Cash Flow Payout: -144%

Utilities
SJW Corp. (SJW) – 0 Stars
Debt to Total Capital: 49%
Free Cash Flow Payout: -94%

Progress Energy, Inc. (PGN) – 1 Stars
Debt to Total Capital: 56%
Free Cash Flow Payout: -36%

Atmos Energy Corporation (ATO) – 1 Stars
Debt to Total Capital: 54%
Free Cash Flow Payout: 1045%

Black Hills Corp. (BKH) – 2 Stars
Debt to Total Capital: 48%
Free Cash Flow Payout: -105%

Integrys Energy Group, Inc. (TEG) – 3 Stars
Debt to Total Capital: 18%
Free Cash Flow Payout: -47%

Consolidated Edison, Inc. (ED) – 3 Stars
Debt to Total Capital: 52%
Free Cash Flow Payout: -40%

For a company to consistently raise its dividends, it must generate strong free cash flows sufficient enough to meet other obligations, such as debt, before paying a dividend. I look for a maximum of 45% Debt to Total Capital and a maximum of 60% Free Cash Flow Payout with the last 10 years positive.

With the exception of NNN and TEG, each of the above companies failed the Debt to Total Capital and Free Cash Flow Payout tests. NNN and TEG passed the Debt to Total Capital test while failing the Free Cash Flow Payout test. All the above companies had multiple years of negative FCF over the last 10 years thus their dividends are supported via non-operating cash such as debt issuances and property sales. Ironically, NNN was the only 4 Star stock and it just recently froze its dividend.

Most REITs and utilities may provide your income portfolio with an additional boost in yield, but may end up costing you more in the long run. I will continue to look at REITs and utilities, but they must measure up like any other stock.

Full Disclosure: Long HCP, O, NNN, PGN, TEG, ED. See a list of all my income holdings here.

Progress Energy, Inc. (PGN) Stock Analysis *

D4L — Mon, 13 Apr 2009 10:30:32 +0000

This article originally appeared on The DIV-Net April 6, 2009.

Linked here is a detailed quantitative analysis of Progress Energy, Inc. (PGN). Below are some highlights from the above linked analysis:

Company Description: Progress Energy, Inc. is a diversified energy company that owns two electric utilities serving approximately 3.1 million customers in North Carolina, South Carolina, and Florida.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:

Avg. High Yield Price
20-Year DCF Price
Avg. P/E Price
Graham Number

PGN is trading at a discount to 1.) and 3.) above. If I exclude the high and low valuations and average the remaining two, PGN is trading at a slight discount. PGN earned a Star in this section since it is trading at a fair value.

Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description:

Rolling 4-yr Div. > 15%
Dividend Growth Rate
Years of Div. Growth
1-Yr. > 5-Yr Growth
Payout 15% of avg.

PGN earned one Star in this section for 3.) above. PGN has paid a cash dividend to shareholders every year since 1937 and has increased its dividend payments for 21 consecutive years.

Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:

NPV MMA Diff.
Years to > MMA

PGN earned both of the available Stars in this section. The NPV MMA Diff. of the $10,999 is in excess of the $7,500 minimum I look for in a stock that has increased dividends as long as PGN has. PGN’s current yield of 6.91% exceeds the 3.17% estimated 20-year average MMA rate.

Other: PGN is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index. Having discontinued the higher risk synthetic fuel business, PGN can now focus on its regulated utilities business in the Carolinas and Florida, which should enjoy above average customer growth and generally supportive regulatory environment. Going forward, the company’s primary focus is on the end-use and wholesale electricity markets in its service region. Risks include unfavorable regulatory rulings and a deeper than anticipated residential decline in Florida.

Conclusion: PGN earned one Star in the Fair Value section, earned one Star in the Dividend Analytical Data section and earned two Stars in the Dividend Income vs. MMA section for a net total of four Stars. This quantitatively ranks PGN as a 4 Star-Buy.

Using my D4L-PreScreen.xls model, I determined the share price could increase to $42.81 before PGN’s NPV MMA Differential fell to the $7,500 that I like to see. At that price the stock would yield 5.88%.

Resetting the D4L-PreScreen.xls model and solving for the dividend growth rate needed to generate the needed $7,500 NPV MMA Differential, the calculated rate is -1.7%. This negative dividend growth rate is below the 0.8% used in this analysis, thus providing a margin of safety. PGN has a risk rating of 1.75 which classifies it as a medium risk stock.

Although PGN is quantitatively rated as a buy and it is trading below my buy price of $37.00, I have concerns about its dividend in the near-term. The company has experienced the adverse impact of the current economic recession while remaining intent on enhancing operational excellence, strengthening financial flexibility and growth.

In 2007 and 2008, PGN’s free cash flow per share was negative as a result of lower operating cash flows and higher capital spending. After seeing $2.3 billion of capital expenditures in 2008, PGN plans to spend approximately $6.3 billion over the next three years from 2009 through 2011, with about $2 billion spent in each year. For additional information, including the stock’s dividend history, please refer to its data page.

Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Full Disclosure: At the time of this writing, I was long in PGN (3.0% of my Income Portfolio).

What are your thoughts on PGN?

3M (MMM) and Manulife (MFC) Answer The Leadership Call *

D4L — Fri, 13 Feb 2009 11:30:51 +0000

When the world appears to be collapsing in around you and things look their darkest, it is then when character is determined and leaders rise to the top. On Tuesday, U.S. Treasury Secretary Timothy Geithner called for a new program that combines public and private capital to be used in a fund that will buy troubled assets of up to $1 trillion, aimed at unfreezing credit markets. The the markets were underwhelmed. Many companies, such as Harley-Davidson (HOG) and Dow Chemical (DOW), used this smoke screen to slash dividends, but in the midst of the turmoil, an American Aristrocrat and a Canadian Achievier stood tall.

3M Co. (MMM) is a diversified global company has operations in electronics, health care, industrial, consumer and office, telecommunications, safety and security, and other markets. On Wednesday its Board declared a dividend of $0.51/share, a 2% increase. The dividend is payable on March 12, 2009, to shareholders of record at the close of business on February 20, 2009. This is the 51st consecutive year the company has increased its dividend. 3M’s Board also approved an extension to the company’s $7 billion share repurchase authorization which would have expired this month. The stock’s dividend yield is over 4%.

Manulife Financial (MFC) is a Canadian insurer that is among the world’s largest life insurers, offering products and services mostly in North America and Asia. On Thursday, its Board of Directors declared a quarterly dividend of $0.26/share, payable on and after March 19, 2009 to shareholders of record at the close of business on February 25, 2009. The stock’s dividend yield is 5.80%. (stock analysis)

Other companies flexing their financial muscles with higher dividends include:

Compass Minerals (CMP) Raises Qtr. Dividend to $0.355/share (yield 2.36%)
QNB Corp. (QNBC) Increases Dividend to $0.355 (yield 2.36%)
Terra Nitrogen (TNH) Boosts Qtr. Dividend by 6% to $2.97/unit (yield 10.66%)
Northeast Utilities (NU) Raises Qtr. Dividend by 11.7% to $0.2375/share (yield 4.03%)
Sigma-Aldrich (SIAL) Increases Qtr. Dividend by 11.5% to $0.145/share (yield 1.51%)
Progress Energy (PGN) Boosts Qtr. Dividend to $0.62/share (yield 6.47%)
Honeywell (HON) Raises Quarterly Dividend to $0.3025/share (yield 3.80%)
APCapital (ACAP) Increases Quarterly Dividend 10% to $0.11/share (yield 0.98%)
Robert Half International (RHI) to Bumps Quarterly Dividend 9% to $0.12 (yield 2.7%)

Finally, the reining dividend champion, Diebold (DBD) increased its dividend 4% to %0.26/share for the company’s 56th consecutive year. The company develops, makes, and services self-service transaction systems, electronic & physical security systems, and software used to equip bank facilities, voting terminals. The stock’s dividend yield is 4.22%.

For other companies around the world with a string of consecutive dividend increases still in tact, see Dividends Value’s Stock Ideas page.

Full Disclosure: Long MFC, PGN

(Photo: Steve Woods)

10 Companies Increasing Dividends and Long-Term Returns *

D4L — Fri, 12 Dec 2008 11:30:00 +0000

It is well-documented that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.

Here are 10 companies looking to increase their long-term returns by raising their cash dividends:

Interactive Data (IDC) Raises Qtr. Dividend 33% to $0.20/Share (3.48%)
Graco (GGG) Boosts Qtr. Dividend by 3% to $0.19/Share (3.50%)
Hillenbrand (HI) Raises Qtr. Dividend 1.4% to $0.185/Share (4.51%)
Triangle Capital Corporation (TCAP) Increases Dividend 33.3% To $0.40 Per Share (15.46%)
Nucor (NUE) Raises Qtr. Dividend by 9.4% to $0.35/Share (3.14%)
Progress Energy (PGN) Boosts Qtr. Dividend to $0.62/Share (6.20%)
DPL Inc. (DPL) Raises Qtr. Dividend by 3.6% to $0.285/Share (5.49%)
Valspar (VAL) Boosts Dividend from $0.14 to $0.15/Share
Erie Indemnity (ERIE) Raises Qtr. Dividends 2.3% (4.72)
Harsco (HSC) Raises Qtr. Dividend by 2.6% to $0.20/Share (3.20%)

NUE was reviewed on 9/1/2008 with a 5 Star-Buy rating. After running the remaining companies through my D4L-PreScreen.xls model, the Dividend Achiever PGN with a NPV of MMA Differential of $4,626 is one that I own and have on my watch list. None of the other companies’ NPV of MMA Differentials were close enough to warrant a more complete evaluation.

Disclosure: Long NUE and PGN.

(Photo: Steve Woods)

Five Dividend Stocks To Watch *

D4L — Thu, 04 Dec 2008 11:30:00 +0000

Blue chip dividend stocks usually carry a premium. Often this premium is in excess of what I am willing to pay. With Monday’s market slide followed by Tuesday and Wednesday’s subsequent recovery, it appears that good stocks can fall into an after-Thanksgiving mark-down sale at anytime. Here are five stocks that I am watching closely, with their Risk Quality (RQ) rating and other information as of 12/1/2008:

I. Procter & Gamble Co. (PG )

RQ: A1
Yield: 2.49%
Buy Below: $59.70
12/1/2008 Close: $60.49
% Change since 12/31/2007: -17.6% ($73.42)

II. Wells Fargo & Company (WFC)

RQ: A2
Yield: 4.71%
Buy Below: $26.44
12/1/2008 Close: $23.41
% Change since 12/31/2007: -22.5% ($30.19)

III. Kimberly-Clark Corporation (KMB)

RQ: A2
Yield: 4.02%
Buy Below: $52.87
12/1/2008 Close: $55.02
% Change since 12/31/2007: -20.7% ($69.34)

IV. Progress Energy, Inc. (PGN)

RQ: A5
Yield: 6.20%
Buy Below: $36.95
12/1/2008 Close: $37.73
% Change since 12/31/2007: -22.1% ($48.43)

V. The Coca-Cola Company (KO)

RQ: A2
Yield: 3.24%
Buy Below: $45.35
12/1/2008 Close: $44.33
% Change since 12/31/2007: -27.8% ($61.37)

When the market is in a free-fall, it is important to concentrate on quality. Each of the above stocks has a RQ rating of A5 or better. Their share price has declined significantly less that the 44.1% decrease of S&P 500 as measured by VFINX ($135.15 down to $75.54). I suspect Monday was not the last after-Thanksgiving sale of 2008.

As always, you should perform your own research and reach your own conclusion before buying or selling an investment security.

Full Disclosure: As of this writing, I was long in VFINX, PG, PGN and KO

Progress Energy, Inc. (PGN)

D4L — Mon, 01 Oct 2007 10:30:12 +0000

Description: Progress Energy, Inc. is a diversified energy company that owns two electric utilities serving approximately 3.1 million customers in North Carolina, South Carolina, and Florida.

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