Dividend Growth Investor Newsletter

Pages

Monday, August 8, 2011

12 Dividend Stocks Raising Distributions Despite Recession Fears

Over the past week, the buy and hold mentality of every investor was tested by the precipitous declines in major stock market indexes. Despite the facts that US corporations are sitting on a record pile of cash, that corporate profits are increasing and that stocks are trading at a fairly cheap multiple based off historical valuations, investors are fleeing the market and going into fixed income securities.

Yet, despite all the gloom in the markets, there were several companies which chose to ignore the fear of another recession. These corporations showed their bullishness in their businesses by approving higher dividend payments to shareholders. The companies announcing dividend increases over the past week include:

Illinois Tool Works Inc. (ITW) manufactures a range of industrial products and equipment worldwide. The company increased its quarterly dividend by 5.90% to 36 cents per share. Illinois Tool Works is a dividend champion, which has increased its quarterly dividend in each of the past 48 years. The stock currently yields 3.10%. (analysis)

Dover Corporation (DOV) and its subsidiaries manufacture industrial products and components, as well as provide related services and consumables in the United States and internationally. The company increased its quarterly dividend by 14.50% to 31.50 cents per share. Dover Corporation is a dividend aristocrat, which has increased its quarterly dividend in each of the past 56 years. The stock currently yields 2.30%. (analysis)

Leggett & Platt, Incorporated (LEG) designs and produces a range of engineered components and products worldwide. It operates in four segments: Residential Furnishings, Commercial Fixturing & Components, Industrial Materials, and Specialized Products. The company increased its quarterly dividend by 3.70% to 28 cents per share Leggett & Platt is a dividend aristocrat, which has increased its quarterly dividend in each of the past 40 years. The stock currently yields 5.50%.

Carlisle Companies Incorporated (CSL) manufactures construction materials in the United States and internationally. The company increased its quarterly dividend by 5.90% to 18 cents per share. Carlisle Companies is a dividend champion, which has increased its quarterly dividend in each of the past 34 years. The stock currently yields 1.90%.

Harleysville Group Inc. (HGIC), through its subsidiaries, engages in the property and casualty insurance business primarily in the eastern and midwestern United States. The company increased its quarterly dividend by 5.60% to 38 cents per share. Harleysville Group is a dividend champion, which has increased its quarterly dividend in each of the past 25 years. The stock currently yields 5.20%.

Aqua America, Inc. (WTR), through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States. The company increased its quarterly dividend by 6.50% to 16.50 cents per share. Aqua America is a dividend achiever, which has increased its quarterly dividend for 20 years in a row. The stock currently yields 3.10%.

Buckeye Partners, L.P. (BPL) owns and operates refined petroleum products pipeline systems in the United States. The master limited partnership increased its quarterly distributions by 1.25% over the prior quarter distribution to $1.0125 per unit. Buckeye Partners is a dividend achiever, which has increased its quarterly dividend for 16 years in a row. Current yield: 6.60%.

Monsanto Company (MON), together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The company increased its quarterly dividend by 7.10% to 30 cents per share. Monsanto Company is a dividend achiever, which has increased its quarterly dividend for 11 years in a row. The stock currently yields 1.70%.

Boardwalk Pipeline Partners, LP, (BWP) through its subsidiaries, engages in the interstate transportation and storage of natural gas in the United States. The master limited partnership increased its quarterly distributions by 0.50% over the prior quarter distribution to 52.50 cents per unit. Boardwalk Pipeline Partners has increased its quarterly dividend for six years in a row. Current yield: 7.40%.

Alterra Capital Holdings Limited (ALTE), through its subsidiaries, provides specialty insurance and reinsurance products to corporations, public entities, and property and casualty insurers principally in Bermuda, Ireland, the United States, and the United Kingdom. The company increased its quarterly dividend by 16.70% to 14 cents per share. Alterra Capital Holdings Limited has increased its quarterly dividend for 11 years in a row. The stock currently yields 2.60%.

STERIS Corporation (STE) develops, manufactures, and markets infection prevention, contamination control, microbial reduction, and surgical support products and services to healthcare, pharmaceutical, scientific, research, industrial, and governmental customers worldwide. The company increased its quarterly dividend by 13.30% to 17 cents per share. STERIS Corporation has increased its quarterly dividend for 7 years in a row. The stock currently yields 2.20%.

Hawkins, Inc. (HWKN) manufactures, blends, and distributes bulk and specialty chemicals in the United States. It operates through two segments, Industrial and Water Treatment. The company increased its quarterly dividend by 6.25% to 32 cents per share. Hawkins has increased its quarterly dividend in each of the past 7 years. The stock currently yields 1.90%.

The particular bullish fact about these companies, is that each one of them has a long history of consistently raising dividends. For them, sharing their business success with shareholders in the form of paying higher dividends every year is business as usual.

I only wish I had more cash on hand to add to my portfolio of dividend paying stocks. This Warren Buffett quote summarizes my opinion on stocks going lower from here: “Be fearful when others are greedy, and be greedy when others are fearful.”

Full Disclosure: Long ITW

Relevant Articles: