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Dividend Achievers Additions for 2012

The new additions to the Dividend Achievers Index were announced a few weeks ago by Mergent. The dividend achievers index includes companies with the following characteristics:

1) Traded on NYSE, Nasdaq or AMEX

2) US companies with at least ten consecutive years of increasing regular dividends

3) Having a minimum average daily cash volume of US$500,000 per day

I typically screen the list of dividend achievers at least once a month, in order to search for attractively valued dividend stocks to accumulate. With over 200 individual dividend growth stocks comprising the index, I have plenty of companies to sift through in order to find the 20 or 30 that could ultimately find their way in my dividend portfolio. In addition, looking at the list of new dividend achievers additions, might enable me to identify the next big dividend growth story, that will pay rising dividends for the next several decades.

The companies added to the index in 2012 include:

Southern Company (SO), through its subsidiaries, operates as a utility company that provides electric service in the southeastern United States. Yield: 4.30%

Monsanto Company(MON) , together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. Yield: 1.50%

NIKE, Inc. (NKE), together with its subsidiaries, engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessory products for men, women, and children worldwide. Yield: 1.30%

Norfolk Southern Corporation (NSC), through its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. Yield: 2.70% (analysis)

Magellan Midstream Partners, L.P. (MMP), together with its subsidiaries, engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. Yield: 4.60%

W. R. Berkley Corporation (WRB), an insurance holding company, operates as commercial lines writers in the property casualty insurance business primarily in the United States. Yield: 0.90%

Harris Corporation (HRS), together with its subsidiaries, operates as a communications and information technology company that serves government and commercial markets worldwide. Yield: 3%

NuStar Energy L.P. (NS) engages in the terminalling, storage, and transportation of petroleum products primarily in the United States, Canada, the Netherlands, St. Eustatius in the Caribbean, the United Kingdom, and Mexico. Yield: 7.50%

Royal Gold, Inc. (RGLD), together with its subsidiaries, engages in the acquisition and management of precious metal royalties. Yield: 0.90%

Senior Housing Properties Trust (SNH), a real estate investment trust (REIT), primarily invests in senior housing properties in the United States. Yield: 6.80%

Nu Skin Enterprises, Inc. (NUS) develops and distributes anti-aging personal care products and nutritional supplements worldwide. Yield: 1.40%

Inergy, L.P. (NRGY) engages in the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers in the United States. Yield: 17.70%

Delphi Financial Group, Inc. (DFG), a financial services company, together with its subsidiaries, provides specialty insurance and insurance-related services in the United States. Yield: 1.10%

Valmont Industries, Inc. (VMI) produces and sells fabricated metal products, pole and tower structures, and mechanized irrigation systems in the United States and internationally. Yield: 0.60%

Watsco, Inc. (WSO), together with its subsidiaries, distributes air conditioning, heating and refrigeration equipment, and related parts and supplies in the United States. Yield: 3.30%

Sanderson Farms, Inc. (SAFM), an integrated poultry processing company, engages in the production, processing, marketing, and distribution of fresh, frozen, and prepared chicken products in the United States. Yield: 1.30%

1st Source Corporation (SRCE) operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services to individuals and businesses in the United States. Yield: 2.60%

Tompkins Financial Corporation (TMP), through its banking subsidiaries, Tompkins Trust Company, The Bank of Castile, and The Mahopac National Bank, provides banking and financial services to individuals, corporations, and other business clients in New York. Yield: 3.50%

Republic Bancorp, Inc. (RBCAA) operates as the holding company for Republic Bank & Trust Company and Republic Bank, which provides banking, tax refund solutions, and mortgage banking services to individuals and businesses in the United States. Yield: 2.50%

Arrow Financial Corporation (AROW) operates as the holding company for Glens Falls National Bank and Trust Company, and Saratoga National Bank and Trust Company that offer various commercial and consumer banking, and financial products in the United States. Yield: 4.10%

Cass Information Systems, Inc. (CASS) provides payment and information processing services to large manufacturing, distribution, and retail enterprises in the United States. Yield: 1.70%

Connecticut Water Service, Inc. (CTWS), through its subsidiaries, operates as a regulated water company in Connecticut. Yield: 3.30%

The average yield of the new additions is 3.50%. There are a few companies on this list, which I have observed for several years as they have been approaching dividend achiever status. I plan on further researching these new additions by analyzing the historical performance and determining whether there are any competitive advantages that will protect future profits.

Full disclosure: None

About the author:

Dividend Growth Investor
http://www.dividendgrowthinvestor.com

Rating: 3.4/5 (9 votes)

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