Notable Dividend Hikes: CVX, AWR, XOM, APL, GWW

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Apr 28, 2011
These are today's dividend hikes, according to The Dynamic Dividend: Chevron Corporation (CVX, Financial),

American States Water Company (AWR, Financial), Exxon Mobil Corporation (XOM, Financial), Atlas Pipeline Partners, L.P. (APL, Financial), and W.W. Grainger, Inc. (GWW, Financial).

Chevron Raises Dividend for 24th Consecutive Year

Chevron Corporation (CVX) declared a quarterly dividend of $0.78 per share after today’s closing bell, topping its previous payout by 8.3%. Shares of CVX closed at $108.97 today, where they now feature a 2.86% dividend yield.

Chevron has increased its annual dividend total every year dating back to 1988. Much like Exxon Mobil (XOM) (which, coincidentally, upped its dividend just hours ago), Chevron’s long dividend growth streak masks how stingy — relative to its success — the company has been with its cash in recent years. Chevron’s new dividend rate represents just 24% of future earnings, yet the company hasn’t given shareholders a double-digit raise since early 2008.

American States Water Extends Historic Dividend Streak

American States Water Company (AWR) declared a quarterly dividend of $0.28 per share today, a 7.7% improvement over the $0.26 paid each of the previous six quarters by the company. American States is now positioned to pay an increased dividend total for the 57th consecutive year.

Shares of AWR closed at $34.83 today, where they now yield 3.22%.

American States Water has raised its dividend total every year dating back to 1955, the second longest active streak among publicly-traded companies. Only Diebold (DBD) has it beat, and only by one year.

Atlas Partnerships Raise Distributions

Atlas Pipeline Partners, L.P. (APL), and its owner and operator, Atlas Energy, L.P (AHD), will each have higher payouts this quarter, the partnerships have announced.

Atlas Pipeline Partners declared a quarterly distribution of $0.40 per unit, an 8% increase over its fourth quarter payout. APL is currently trading at $36.18 (+2.93%), where it now yields 4.42%.

Atlas Energy declared a quarterly distribution of $0.11 per unit, a 57% improvement over its fourth quarter payout. AHD is currently trading at $25.22 (+1.04%), where it now yields 1.74%.

Another Underwhelming Dividend Hike from Exxon Mobil

Exxon Mobil Corporation declared a quarterly dividend of $0.47 per share today, a 6.8% improvement over the $0.44 paid each of the previous four quarters by the energy giant. The company is currently on pace to increase its annual dividend total for the 29th consecutive year.

Shares of XOM are trading at $87.44(+0.02%), where they now feature a 2.15% dividend yield.

Even though Exxon Mobil has raised its annual dividend total every year dating back to 1983, it has been pretty stingy about returning cash to its shareholders. Despite incredible profits and a very low forward payout ratio (barely 20% of future earnings, even after today’s increase), the company has only given shareholders a double-digit raise twice in the last twenty years.

Grainger’s Biggest Dividend Hike in 32 Years

W.W. Grainger, Inc. (GWW) reached a big milestone by raising its dividend for the 40th consecutive year today. The timing of the move was easy to predict, as the company raises its payout every April like clockwork. Less foreseeable: Grainger celebrating the occasion by giving shareholders their biggest raise since 1979. Grainger declared a quarterly dividend of $0.66 per share, 22% better than its previous payout. You have to go back 32 years to find an instance where the perpetual dividend-raiser boosted its payout by this much. And it’s not as if the company has been stingy with the increases lately, either. Grainger has now given shareholders a double-digit raise in each of the last seven years, more than tripling its payout over that short period.

Shares of GWW are currently trading at $149.75 (+0.49%), where they now feature a 1.76% dividend yield.