GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Fourteen Dividend Paying Machines for Further Research

January 22, 2013 | About:
Every week I review the list of dividend increases in order to feel the pulse of cash distributions by corporate America. I also use this list in order to learn about dividend increases or dividend cuts by companies I own. In addition, I use the list in order to gauge the momentum in dividend increases for companies I am considering for addition in my portfolio or to identify prominent dividend growers for further research.

Over the past week the following companies announced dividend hikes. I focused on the ones that have managed to boost distributions for at least five years in a row below:

Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the United States and internationally. The partnership boosted quarterly distributions from 65 to 66 cents/unit. This dividend achiever has regularly boosted distributions for 15 years in a row. Over the past 10 years, Enterprise Products Partners has managed to boost annual distributions by 6.70%/year. Yield: 4.90% Check my analysis of the partnership.

Kinder Morgan Energy Partners, L.P. (KMP) operates as a pipeline transportation and energy storage company in North America. The partnership boosted quarterly distributions from $1.26 to $1.29/unit. This dividend achiever has regularly boosted distributions for 16 years in a row. Over the past 10 years, Kinder Morgan Energy Partners has managed to boost annual distributions by 7.50%/year. Yield: 5.90%. Check my analysis of the partnership.

Kinder Morgan, Inc. (KMI) owns and operates energy transportation and storage assets in the United States and Canada. The company boosted quarterly distributions from 36 to 37 cents/share. The general partner of Kinder Morgan Partners has boosted dividends five times since going public in 2011. Yield: 4%

ONEOK, Inc. (OKE), a diversified energy company, engages in the gathering, processing, storage, and transportation of natural gas and natural gas liquids in the United States. The company boosted quarterly distributions from 33 to 36 cents/share. This dividend achiever has regularly boosted distributions for 10 years in a row. Over the past 10 years, ONEOK, Inc has managed to boost annual dividends by 15.10%/year. Yield: 3.10%. Check my analysis of the stock.

ONEOK Partners, L.P. (OKS) engages in the gathering, processing, storage, and transportation of natural gas in the United States. The partnership boosted quarterly distributions from 68.50 to 71 cents/unit. This MLP has regularly boosted distributions for 7 years in a row. Over the past 10 years, ONEOK Partners, L.P.has managed to boost annual distributions by 4.90%/year. Yield: 4.90%

Targa Resources Partners LP (NGLS) provides midstream natural gas and natural gas liquid (NGL) services in the United States. The partnership boosted quarterly distributions from 66 to 68 cents/unit. This MLP has regularly boosted distributions for 5 years in a row. Over the past 5 years, Targa Resources Partners has managed to boost annual distributions by 24.60%/year. Yield: 6.90%

Genesis Energy, L.P. (GEL) operates in the midstream segment of the oil and gas industry in the Gulf Coast region of the United States. The partnership boosted quarterly distributions from 47.25 to 48.50 cents/unit. This dividend achiever has regularly boosted distributions for 10 years in a row. Over the past 10 years, Genesis Energy has managed to boost annual distributions by 11.60%/year. Yield: 5.20%

The Williams Companies, Inc. (WMB) operates as an energy infrastructure company in the United States. The company boosted quarterly distributions from 32.50 to 33.875 cents/share. This dividend stock has regularly boosted distributions for 9 years in a row. Over the past 10 years, Williams Companies has managed to boost annual dividends by 11%/year. Yield: 3.90%

Omega Healthcare Investors, Inc. (OHI) operates as a real estate investment trust (REIT) in the United States. The company boosted quarterly distributions from 44 to 45 cents/share. This dividend achiever has regularly boosted distributions for 10 years in a row. Over the past 5 years, Omega Healthcare Investors has managed to boost annual dividends by 9.40%/year. Yield: 7.10%

Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company boosted quarterly distributions from 30 to 34 cents/share. This dividend achiever has regularly boosted distributions for 11 years in a row. Over the past 10 years, Wisconsin Energy Corporation has managed to boost annual dividends by 11.60%/year. Yield: 3.60%

AptarGroup, Inc. (ATR) engages in the design, development, manufacture, and sale of consumer product dispensing systems in North America, Europe, Asia, and South America. The company boosted quarterly distributions from 10 to 12 cents/share. This dividend achiever has regularly boosted distributions for 19 years in a row. Over the past 10 years, AptarGroup Corporation has managed to boost annual dividends by 22%/year. Yield: 1.70%

The Finish Line, Inc. (FINL), together with its subsidiaries, operates as a mall-based specialty retailer in the United States. The company boosted quarterly distributions from 6 to 7 cents/share. This dividend stock has regularly boosted distributions for 6 years in a row. Over the past 5 years, Finish Line has managed to boost annual dividends by 36.90%/year. Yield: 1.70%

Alliant Energy Corporation (LNT), a utility holding company, provides regulated electricity and natural gas services to residential, commercial, and industrial customers in the Midwest region of the United States. The company boosted quarterly distributions from 45 to 47 cents/share. This dividend achiever has regularly boosted distributions for 11 years in a row. Over the past 5 years, Alliant Energy Corporation has managed to boost annual dividends by 7.40%/year. Yield: 4.10%

Shaw Communications Inc. (SJR) provides broadband cable television, Internet, home phone, telecommunication, and satellite direct-to-home services in Canada and the United States. The company raised its annual dividends by 5% C$1.02/share for Class “B” shares. This translates into a monthly dividend of 8.50 Canadian cents. This international dividend achiever has regularly boosted its monthly distributions for 11 years in a row. Yield: 4.30%

The list was dominated by Master Limited Partnerships, and many of their general partners. The two companies that I plan to research further include Omega Healthcare Investors (OHI) and Shaw Communications (SJR). I am considering increasing my exposure to real estate, through REITs. In addition, I am also interested in increasing my exposure to technology companies with sustainable competitive advantages. However, I am not going to diversify at all costs, as I thoroughly analyze each candidate before considering it worthy for inclusion in my portfolio.

Full Disclosure: Long KMI, EPD, KMR, OKS

About the author:

Dividend Growth Investor
Mariusz Skonieczny is the founder and president of Classic Value Investors, LLC, an investment management firms that builds and manages customized investment portfolios for its clients. He is the author of Why Are we So Clueless about the Stock Market? Learn How to Invest Your Money, How to Pick Stocks, and How to Make Money in the Stock Market. Email: mskonieczny [at] classicvalueinvestors [dot] com. Webpage: www.classicvalueinvestors.com

Visit Dividend Growth Investor's Website


Rating: 3.0/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK