Dividend Growth Investor Newsletter

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Tuesday, January 19, 2010

A Strong week for MLP distributions

I review the list of dividend raisers as part of my weekly reviews for possible additions to my portfolio. I require at least ten years of consecutive dividend raises, an adequately valued stock price and yield as well as a well-covered distribution. Several stocks raised their distributions over the past week. Almost half of them were master limited partnerships.

Linear Technology Corporation (LLTC), which engages in the design, manufacture, and marketing of linear integrated circuits worldwide, increased its quarterly dividend by 4.5% to 23 cents per share. Linear Technology Corporation is a dividend achiever, which has increased its quarterly dividend in each of the past seventeen years. The stock currently yields 2.90%.

Shaw Communications Inc. (SJR), which provides broadband cable television, Internet, digital phone, telecommunications, and satellite direct-to-home (DTH) services primarily in Canada and the United States, increased its quarterly dividend by 5% to 22 cents per share. Shaw Communications Inc. is an international dividend achiever. The stock currently yields 4.40%

Enterprise Products Partners L.P. (EPD) announced that the board of directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.56 per common unit, or $2.24 per unit on an annualized basis. This distribution rate, which represents a 5.7 percent increase over the $0.53 per unit distribution rate declared with respect to the fourth quarter of 2008. This dividend achiever currently yields 6.80%.

Enterprise GP Holdings (EPE) owns the general partner of Enterprise Products Partners L.P.(EPD), as well as limited partner interests in the same entity. Enterprise GP Holdings raised its quarterly distribution to 53 cents/unit, which was 12.80% higher than the 47 cents/unit distribution for Q1 2009. The stock currently yields 5.20%.

CVS Caremark Corporation (CVX), which is a pharmacy services company, that provides prescriptions and related healthcare services in the United States, increased its quarterly dividend by 15% to 8.75 cents per share. CVS Caremark has regularly increased its quarterly dividend seven years. The stock currently yields 0.90%.


Duncan Energy Partners L.P. (DEP) engages in gathering, transporting, marketing, and storing natural gas, as well as in transporting and storing natural gas liquids (NGLs) and petrochemicals in the United State.. Last week this master limited partnership increased its quarterly distributions by 4.10% to 44.50 cents per unit. Duncan Energy Partners L.P. has only raised distributions since 2007. The stock currently yields 7.10%.

Genesis Energy, L.P. (GEL), which operates through four divisions: Pipeline Transportation, Refinery Services, Industrial Gases, and Supply and Logistics, increased its quarterly distributions to 36 cents per unit. Genesis Energy, L.P.is has raised distributions since 2003. The stock currently yields 7.30%.

Epoch Holding (EPHC), which is a publicly owned investment manager, increased its quarterly dividend by 66.70% to 5 cents per share. This is the second dividend increase for Epoch Holding since the company started paying dividends in 2007. The stock currently yields 1.80%.

Fifth Street Finance Corp. (FSC), which is a fund specializing in mezzanine investments., increased its quarterly dividend by 11.10% to 30 cents per share. Despite the high current yield of 9.30%, Fifth Street Finance Corp. has a short and erratic dividend history.

Right now, Linear Technology Corporation looks like an attractively valued dividend stock. I would add it to my list for further analysis.

Full Disclosure: None

Relevant Articles:

- 3 dividend increases, more expected in January
- AT&T Raises Distributions by 2.4%
- 7 Dividend Raisers for the week
- 8 Dividend Achievers Strike Back