Searching for Hidden Dividend Stars

As a dividend growth investor, I try to maintain a disciplined approach to buying attractively valued companies. I do maintain a list with entry criterion, which I apply against a list of dividend growth stocks. I usually use the dividend champions and dividend achievers groups of stocks in my screening process. However, I try to get familiar with the story of as many companies as possible, which would help me pull the trigger once price goes into my buy territory. One process I follow in order to learn more about dividend stocks is by focusing on the weekly group of companies with consistent dividend histories which have recently announced increases in distributions. By reading the press releases indicating a dividend hike, I get to gauge the companies’ sentiment and learn more about their business.

One such company that attracted my interest is National Bankshares (NKSH), which seems to have solid fundamentals and would likely deliver good dividend growth in its semi-annual dividends for years to come. It’s a small bank that few income investors have heard of. In an environment where large banks have consistently delivered losses to shareholders, I consider small size to be a virtue of the 21st century American Bank.

The companies which announced increases in dividends over the past week include:

National Bankshares, Inc. (NKSH) operates as the bank holding company for the National Bank of Blacksburg, which provides a range of retail and commercial banking services to individuals, businesses, non-profits, and local governments in Virginia. The company raised its semi-annual dividend to 53 cents/share. This marked the 12th consecutive annual dividend increase for this dividend achiever. Yield: 3.60%

FactSet Research Systems Inc. (FDS) provides financial and economic information to investment community worldwide. The company raised its quarterly dividend by 14.80% to 31 cents/share. This marked the 14th consecutive annual dividend increase for this dividend achiever. Yield: 1.20%

Mine Safety Appliances Company (MSA) engages in the development, manufacture, and supply of products that protect people’s health and safety in the fire service, homeland security, oil and gas, construction, and other industries, as well as military worldwide. The company raised its quarterly dividend by 7.70% to 28 cents/share. This marked the 41st consecutive annual dividend increase for this dividend champion. Yield: 2.60%

NACCO Industries, Inc. (NC) engages in lift trucks, small appliances, specialty retail, and mining businesses worldwide. The company raised its quarterly dividend by 2.80% to 54.75 cents/share. This marked the 27th consecutive annual dividend increase for this dividend champion. Yield: 2 %

Costco Wholesale Corporation (COST) operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. The company raised its quarterly dividend by 14.60% to 27.50 cents/share. This marked the 9th consecutive annual dividend increase for Costco. Yield: 1.30%

CSX Corporation (CSX), together with its subsidiaries, provides rail-based transportation services. The company raised its quarterly dividend by 16.70% to 14 cents/share. This marked the 8th consecutive annual dividend increase for CSX. Yield: 2.60%

G&K Services, Inc. (GKSR) provides branded uniform and facility services programs in the United States and Canada. The company raised its quarterly dividend by 50% to 19.50 cents/share. This marked the 8th consecutive annual dividend increase for G&K Services. Yield: 2.50%

NV Energy, Inc. (NVE), together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in Nevada. The company raised its quarterly dividend by 30.80% to 17 cents/share. NV Energy has increased dividends since 2008. Yield: 4%

Franklin Electric Co., Inc. (FELE), together with its subsidiaries, engages in the design, manufacture, and distribution of groundwater and fuel pumping systems. It operates in two segments, Water Systems and Fueling Systems. The company raised its quarterly dividend by 7.40% to 14.50 cents/share. This marked the 20th consecutive annual dividend increase for this dividend achiever. Yield: 1.20%

Full disclosure: None

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- My Entry Criteria for Dividend Stocks
- Variability in Dividend Growth Rates
- Why I am a Dividend Growth Investor?
- Build your own Berkshire with dividend paying stocks