matisse capital management

Companies That Raised Dividends This Week

    CLB, Core Lab, from $0.06 to $0.25, quarterly; yield = 1.1%; +316%

    CVS, CVS Caremark, from $0.0875 to $0.125, quarterly; yield = 1.4%; +43%

    EPHC, Epoch Holdings, from $0.05 to $0.06, quarterly; yield = 1.5%; +20%

    IP, International Paper, from $0.125 to $0.1875, quarterly; yield = 2.6%; +50%

    LNT, Alliant Energy, from $0.395 to $0.425, quarterly; yield = 4.5%; +8%

    VNO, Vornado Realty, from $0.65 to $0.69, quarterly; yield = 3.2%; +6%

Companies That Raised Dividends This Week

    OZRK, Bank of the Ozarks, $0.16 to $0.17, quarterly; yield = 1.6%; +6%

    RBN, Robbins & Myers, from $0.0425 to $0.045, quarterly; yield = 0.4%; +6%

    SE, Spectra Energy, from $0.25 to $0.26, quarterly; yield = 4.2%; +4%

And, reportedly, the number of companies cutting their dividends has decreased from 74, in the fourth quarter 2009, to 28, in the fourth quarter 2010, per Bloomberg here.  There were also 44% more dividend increases than in the fourth quarter 2009.

The 2011 Dividend Aristocrats List - Down to 42

3 companies added, 3 subtracted.  Standard & Poor's publishes an index known as the "Dividend Aristocrats."  These are large, blue chip companies that are in the S&P 500 and which have raised their dividend every year for the last 25 years.  Only a few years ago, there were some 72 companies on this list.  Today there are 42.  Of course, over the last few years, a lot of financials have departed as they slashed their dividends, including Bank of America (BAC), State Street (STT) as well as Fifth Third Bancorp (FITB), and other businesses like General Electric (GE) and Pfizer (PFE).  Currently there are only three financial on the list: CB, CINF and LEG.  Here are this years additions and subtractions:

    Additions:  Ecolab (ECL), Hormel Foods (HRL), and McCormick & Company (MKC).

    Subtractions:  Eli Lilly (LLY), Integrys Energy (TEG) and Supervalue (SVU).

You can find the full 2011 Aristocrats list below after the jump.  Disclosure: The author is long MKC, PFE and PG.

Companies That Raised Dividends This Week

    DE, Deere & Co., from $0.30 to $0.35, quarterly; yield = 1.8%; +16.7%

    DIS, Walt Disney Company, from $0.35 to $0.40, annually; yield = 1.1%: +14.0%

    ECL, Ecolab, from $0.155 to $0.175, quarterly; yield = 1.5%; +13.0%

    EMN, Eastman Chemical, from $0.44 to $0.47, quarterly; yield = 2.3%; +7.0%

    FKYS, First Keystone, from $0.23 to $0.24, quarterly; yield = 5.6%: +4.3%

    HI, Hillenbrand, Inc., from $0.1875 to $0.19, quarterly; yield = 3.9%; +1.3%

    LECO, Lincoln Electric, from $0.28 to $0.31, quarterly; yield = 1.9%; +11.0%

    MAA, Mid-America Apts., from $0.615 to $0.6275, quarterly; yield = 2.5%; +2.0%

    OGE, OGE Energy, from $0.3625 to $0.375, quarterly; yield = 3.4%; +3.4%

    TTC, Toro Company, from $0.18 to $0.20, quarterly; yield = 1.3%; +11%

Also, the Canadian company Gildan Active Wear (GIL) initiated a dividend of C$0.30, annually.  And National Bank of Canada became the first of the large Canadian banks, since 2007, to raise its quarterly dividend; in this case from C$0.62 to C$0.66.

Companies That Raised Dividends This Week

    AFG, American Financial, from $0.138 to $0.1625, quarterly; yield = 2.2%; +18%

    ALNC, Alliance Financial, from $0.28 to $0.30, quarterly; yield = 4.1%; +7%

    HCC, HCC Insurance, from $0.135 to $0.145, quarterly; yield = 2.2%; +7%

    HRS, Harris Corp., from $0.22 to $0.25, quarterly; yield = 2.3%; +14%

    USBI, United Bankshares, from $0.29 to $0.30, quarterly; yield = 4.9%; + 3%

    VZ, Verizon, from $0.475 to $0.4875, quarterly; yield = 6.4%; +3%

The top dividend grower of this group?   HRS, Harris Corporation grew its dividend at an annual compound rate of 13.7% over the last 10 years.  Note also that this week Weyerhauser (WY) announced a special dividend of $4.03 plus 1.44 shares for each share of stock as a part of its restructuring into a REIT.  

Companies That Raised Dividends This Week

    BOBE, Bob Evans, from $0.18 to $0.20, quarterly; yield = 3.1%; +11%

    DEO, Diageo, from £0.222 to £0.235, semi annual; yield = 2.8%; +6%

    GKSR, G & K Services, from $0.075 to $0.095, quarterly; yield = 1.7%; +27%

    MO, Altria Group, from $0.35 to $0.38, quarterly; yield = 6.7%; +9%

    SSI, Stage Stores, from $0.05 to $0.075, quarterly; yield = 2.6%; +50%

    TOD, Todd Shipyards, from $0.075 to $0.10, quarterly; yield = 2.7%; +33.3%

Companies That Raised Dividends This Week

    AFG, American Financial, from $0.138 to $0.1625, quarterly; yield = 2.2%; +18%

    ALV, Autoliv, from $0.30 to $0.35, quarterly; yield = 2.6%; +17%

    BMI, Badger Meter, from $0.12 to $0.14, quarterly; yield = 1.5%; +17%

    CINF, Cincinnati Financial, from $0.395 to $0.40, quarterly; yield = 5.3%; +1%

    FCAP, First Capital, from $0.18 to $0.19, quarterly; yield = 5.0%; +6%

    GTY, Getty Realty, from $0.475 to $0.48, quarterly; yield = 7.9%; +1%

    ITC, ITC Holdings, from $0.32 to $0.335, quarterly; yield = 2.3%; +5%

    LAWS, Lawson Products, from $0.06 to $0.08, quarterly; yield = 2.2%; +33%

    LO, Lorillard Inc., from $1.00 to $1.125, quarterly; yield = 6.0%; +13%

    MGEE, MGE Energy, from $0.368 to $0.3751, quarterly; yield = 4.2%; +2%

    NDSN, Nordson Corp., from $0.19 to $0.21, quarterly; yield = 1.3%; +11%

    NRIM, NorthRim Bancorp, from $0.10 to $0.12, quarterly; yield = 2.9%; +20%

Companies That Raised Dividends This Week

    AUY, Yamana Gold, from $0.015 to $0.02, quarterly; yield = 0.8%; +33%

    BCE, BCE Inc., from $C0.44 to $C0.46, quarterly; yield = 5.9%; +5%

    CMS, CMS Energy, from $0.15 to $0.21, quarterly; yield = 5.0%; +40%

    DOV, Dover Corp., from $0.26 to $0.275, quarterly; yield = 2.2%; +6%

    FRT, Federal Realty Trust, from $0.66 to $0.67 quarterly; yield = 3.4%; +2%

    HHY, Helios HIgh Yield, from $0.06 to $0.065 monthly; yield = 8.7%; +8%

    HGIC, Harleysville Group, from $0.325 to $0.36, quarterly; yield =4.7%; +11%

    ITW, Illinois Tool, from $0.31 to $0.34, quarterly; yield = 3.0%; +10%

    LEG, Leggett & PLatt, from $0.26 to $0.27 quarterly; yield = 5.1%; +4%

    MGA, Magna International, from $C0.18 to $C0.30, quarterly; yield = 1.5%; +67%

    MON, Monsanto Co., from $0.265 to $0.28, quarterly; yield =1.8%; +6%

    MUR, Murphy Oil, from $0.25 to $0.275, quarterly; yield = 2.0%; +10%

    STRT, Strattec Security, declares a one-time special dividend of $1.20

    XCO, Exco Resources, from $0.03 to $0.04, quarterly; yield = 1.0%; +33%

The top dividend growers of this group?  Over the last 10 years, Illinois Tool Works has increased its dividend at an average annual rate of 13.0%, while Murphy Oil (MUR) has increased its dividend at an average annual rate of 11.5%.  Leggett & Platt (LEG) raised its dividend at the annual rate of 9.4% over the last 10 years, while BCE Inc. (BCE) raised its dividend at an average rate of 8.7% over the same time frame. 

Companies That Raised Dividends This Week

    ABX, Barrick Gold, from $0.10 to $0.12, quarterly; yield = 1.2%: +20%

    AWK, American Water, from $0.21 to $0.22, quarterly; yield = 4.1%: +5%

    DCI, Donaldson Company, from $0.12 to $0.125, quarterly; yield = 1.1%; +25%

    DTE, DTE Energy, from $0.53 to $0.56, quarterly; yield = 4.8%; +6%

    NEM, Newmont Mining, from $0.10 to $0.15, quarterly; yield = 1.1%; +50%

    NSC, Norfolk Southern, from $0.34 to $0.36, quarterly; yield = 2.6%; +6%

Finally Conoco Phillips (COP) has announced that it will increase its dividend in 2011 (see the WSJ aricle), after beating analyst expectations this quarter. 

Will Canadian Banks Raise Dividends This Year?

RBC Capital Markets thinks so.  The largest Canadian banks have kept their dividends fixed since late 2007 or early 2008, given the global financial crisis.  But RBC analyst Andre-Philippe Hardy recently said: "Canadian banks could start raising dividends later this year, once lenders get a sense of new capital requirements due to be unveiled in November...We do not expect dividend increases until late 2010 at the earliest, but we believe that when the banks have more clarity on the new rules, a few of the Canadian banks might be in a position to increase their dividends."  The banks cited as the strongest possibilities were Toronto-Dominion Bank (TD), Canada's second-largest bank, National Bank of Canada (NA.TO) and Laurentian Bank (LB.TO).

Disclosure:  The author is long TD, Toronto Dominion Bank.