When the economy is booming and earnings are growing by double digits, it is easy to increase dividends. But how about when the economy is slipping and margins are being squeezed? During these times are when you learn which companies are truly committed to their culture of increasing dividends.
Companies that have a reputation as good, solid dividend companies didn't gain this status overnight. It takes years, even decades, to build a relationship of trust with shareholders through increasing dividends. Many of these shareholders rely on dividend payments to provide for their families.
It is important to note that this relationship is a two-way street. Shareholders in top-shelf dividend growth companies are not quick to sell. This was especially noticeable during the 2008-2009 financial crisis. The very best dividend growth stocks did not fall near as much as stocks cutting their dividends or even the average stock.
This week, I screened my dividend growth stocks database for stocks that have raised their dividends for 50 or more consecutive years. The results are presented below:
Cincinnati Financial Corp. (CINF)
Yield: 5.5% | Years of Growth: 51
Cincinnati Financial Corp. markets primarily property and casualty coverage. It also conducts life insurance and asset management operations.
Vectren Corporation (VVC)
Yield: 4.7% | Years of Growth: 52
Vectren Corp. is an energy holding company that delivers gas and/or electricity to more than one million utility customers in Indiana and Ohio, and offers other energy related products and services.
3M Company (MMM)
Yield: 2.7% | Years of Growth: 53
3M Co. provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives, and other chemical additives.
Genuine Parts Company (GPC)
Yield: 3.1% | Years of Growth: 55
Genuine Parts Co is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products.
Procter & Gamble (PG)
Yield: 3.3% | Years of Growth: 55
The Procter & Gamble Company is a leading consumer products company that markets household and personal care products in more than 180 countries.
Northwest Natural Gas Co. (NWN)
Yield: 3.7% | Years of Growth: 56
Northwest Natural Gas Co. is a natural gas utility that provides service to some 590,000 residential, 61,000 commercial and 900 industrial sales customers in Oregon and southwesternWashington.
Dover Corporation Corp. (DOV)
Yield: 2.1% | Years of Growth: 56
Dover Corp. manufactures a broad range of specialized industrial products and sophisticated manufacturing equipment.
Parker-Hannifin Corp. (PH)
Yield: 1.8% | Years of Growth: 56
Parker-Hannifin Corp is a global maker of industrial pneumatic, hydraulic and vacuum motion/control systems, including related pumps, valves, filters, hoses, etc. Its products are used in everything from jet engines to trucks and autos.
Emerson Electric Co. (EMR)
Yield: 3.1% | Years of Growth: 56
Emerson Electric Co. designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial, and consumer markets around the world.
American States Water Co. (AWR)
Yield: 3.2% | Years of Growth: 58
American States Water Co. primarily serves water customers in California. It also provides electric service to a small section of San Bernardino County.
Diebold Inc. (DBD)
Yield: 3.5% | Years of Growth: 58
Diebold, Inc. provides ATMs and other self-service transaction systems and security products to the financial, commercial, government and retail markets.
As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 210+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long EMR, PG, GPC, MMM, VVC, CINF. See a list of all my dividend growth holdings here.
- Why We Are Dividend Growth Investors
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
- 9 Stocks With a Sustainable Dividend
- 11 Low Beta, High Quality Dividend Stocks
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
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