The Dividend Kings List Keeps Expanding

Many income investors are aware of the Dividend Achievers, Dividend Champions and Dividend Aristocrats stock lists of dividend growth stocks. These lists typically focus on companies which have raised dividends for at least 10 or 25 years in a row. There exists another list of dividend growth stocks however, every one of which has managed to boost distributions for at least fifty consecutive years. This is particularly interesting, since this period covered several recessions, a few oil shocks and one embargo, a few wars, inflation and a lot of change in the global economy. These companies not only managed to prosper during that tumultuous period, by adapting and embracing change, but also did not forget to reward their loyal shareholders with a dividend raise. For at least 50 consecutive years that is.

In 2012, there were four additions to the list, and no deletions. The list of dividend king companies includes:

Diebold, Incorporated (DBD) provides integrated self-service delivery and security systems and services primarily to the financial, commercial, government, and retail markets worldwide. The company has raised dividends for 59 years in a row. The ten year dividend growth is 5.60%/year. Yield: 3.50% (analysis)

American States Water Company (AWR), together with its subsidiaries, provides water, electric, and contracted services in the United States. The company has raised dividends for 58 years in a row. The ten year dividend growth is 3.80%/year. Yield: 2.80%

Dover Corporation (DOV) manufactures and sells a range of specialized products and components, and provides related services and consumables. The company has raised dividends for 57 years in a row. The ten year dividend growth is 9.40%/year. Yield: 2.10%

Northwest Natural Gas Company (NWN) stores and distributes natural gas primarily in Oregon, Washington, and California. The company has raised dividends for 57 years in a row. The ten year dividend growth is 3.60%/year. Yield: 4.20%

Emerson Electric Co. (EMR), a diversified technology company, engages in designing and supplying products and technology, and providing engineering services and solutions to the industrial, commercial, and consumer markets worldwide. The company has raised dividends for 56 years in a row. The ten year dividend growth is 7.50%/year. Yield: 3% (analysis)

Genuine Parts Company (GPC) distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company has raised dividends for 56 years in a row. The ten year dividend growth is 5.30%/year. Yield: 3%(analysis)

Parker Hannifin Corporation (PH) manufactures fluid power systems, electromechanical controls, and related components worldwide. The company has raised dividends for 56 years in a row. The ten year dividend growth is 12.90%/year. Yield: 1.80%

The Procter & Gamble Company (PG), together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods. The company has raised dividends for 56 years in a row. The ten year dividend growth is 10.80%/year. Yield: 3.20% (analysis)

3M Company (MMM) operates as a diversified technology company worldwide. The company has raised dividends for 54 years in a row. The ten year dividend growth is 6.60%/year. Yield: 2.40%  (analysis)

Vectren Corporation (VVC), through its subsidiaries, provides energy delivery services to residential, commercial, and industrial and other contract customers in Indiana and west central Ohio. The company has raised dividends for 53 years in a row. The ten year dividend growth is 2.80%/year. Yield: 4.60%

Cincinnati Financial Corporation (CINF) engages in the property casualty insurance business in the United States. The company has raised dividends for 52 years in a row. The ten year dividend growth is 7.30%/year. Yield: 3.90%

The four new additions in 2012 include Coca-Cola, Johnson & Johnson, Lancaster Colony and Lowe's.

The Coca-Cola Company (KO), a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company has raised dividends for 50 years in a row. The ten year dividend growth is 9.80%/year. Yield: 2.70% (analysis)

Johnson & Johnson (JNJ), together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has raised dividends for 50 years in a row. The ten year dividend growth is 11.70%/year. Yield: 3.30% (analysis)

Lancaster Colony Corporation (LANC) engages in the manufacture and marketing of consumer products focusing primarily on specialty foods for the retail and foodservice markets in the United States. The company has raised dividends for 50 years in a row. The ten year dividend growth is 6.70%/year. Yield: 2.10%

Lowe’s Companies, Inc. (LOW), together with its subsidiaries, operates as a home improvement retailer. The company has raised dividends for 50 years in a row. The ten year dividend growth is 31.10%/year. Yield: 1.70% (analysis)

The companies which I expect to join the ranks of the dividend kings in 2013 include Colgate-Palmolive (CL), Nordson Corporation (NDSN) and Illinois Toolworks (ITW).

The list of dividend kings has been expanding since 2007, despite the financial crisis. Only two companies have been dropped out of the list since then. The companies include Integrys Energy Group (TEG), which has not raised dividends since 2009 and Masco (MAS), which cut them in 2009. Since 2007, the list has outperformed S&P 500 in three out of five years. It is a small sample of years of course, so future results might vary.

Portfolio/Year	2008	2009	2010	2011	2012
Dividend Kings TR	-18.48%	17.49%	23.31%	3.51%	14.09%
S&P 500 TR	-36.80%	26.36%	15.05%	1.90%	15.99%
Difference	18.32%	-8.87%	8.26%	1.61%	-1.89%

There are 105 dividend champions and 183 dividend contenders. As a result, the achievements of these fifteen companies are no small task. These companies are not buy recommendations. Instead, every dividend investor worth their salt should study each one of these companies in order to identify the characteristics that lead to these long histories of dividend increases. The lessons learned should hopefully pay huge dividends for decades to come.

Full Disclosure: Long EMR, PG, MMM, KO, JNJ, LOW, CL

Relevant Articles:

- Two Companies Raising Dividends for Over 50 years announce dividend hikes
- Eleven Dividend Kings, Raising dividends for 50+ years
- Where are the original Dividend Aristocrats now?
- Dividend Aristocrats List for 2012
- Dividend Champions - The Best List for Dividend Investors

This article was included in the Carnival of Personal Finance #397 - Favorite Superbowl Commercials Edition