Dividend IncreaseNot to many companies caught my attention this month raising dividends.  A couple of the companies on my watchlist (Top 35 Dividend Growth Stocks) announced dividend increases and there were also a few others that piqued my interest enough to look into them more.  Here you’ll find the dividend increases announced in December 2013 that caught my attention.

AT&T, Inc (T) - AT&T provides telecommunications services to consumers, businesses and other providers in the United States and internationally.  AT&T has a dividend growth streak of 30 years.  Recently, the company announced a dividend increase of $0.01 from $0.45 to $0.46.  This is a growth rate of only 2.23%.  AT&T is a company on my watchlist but I haven’t pulled the trigger on buying any shares due to the low growth rate.  I’ll be interested to see what this company does going forward in the future.

3M Company (MMM) - 3M is a diversified worldwide technology company.  3M has a very long dividend growth streak of 56 years.  Recently, the company grew their dividend rate by 34.65% from $0.635 to $0.855.  This is a very good dividend raise for owners and has raised my interest in looking more into this company.

Archer Daniels Midland (ADM) - ADM is a consumer goods farm products company that manufactures and sells many food and feed ingredients.  Archer Daniels Midland has a 39 year long dividend growth streak.  Recently ADM increased their dividend rate from $0.19 to $0.24.  This is a dividend raise of 26.32%.  This is another company that I’ve decided to look into with more depth soon.

Walt Disney Company (DIS) - Disney is a worldwide entertainment company with theme parks, movies, television networks and consumer products.  Disney pays an annual dividend and has grown their rate 4 years in a row.  Recently, Disney announced a 14.67% increase in their annual dividend from $0.75 to $0.86 per share.

Rent-a-Center, Inc. (RCII) - Rent-a-Center leases household goods to consumers on a rent to own basis.  Rent-a-Center has grown their dividend rate for 5 years in a row.  Recently, the company announced a dividend increase of 9.53% from $0.21 to $0.23 per share.

General Electric (GE) - General Electric operates as an infrastructure and financial services company worldwide.  Many dividend investors were stung in 2009 when GE was forced to cut their dividend rate due to the financial crisis.  Since then GE has worked hard to restore their dividend and has had 4 years of dividend growth.  In December, General Electric announced another dividend increase of 15.79% from $0.19 to $0.22 per share.  I personally own General Electric as I picked up the shares at a great discount during the financial crisis.  This is one company that I monitor closely while I own it in order to hopefully not get caught by negative news in the future.

Pfizer Inc (PFE) - Pfizer is a biopharmaceutical company that develops and sells medicines for humans and animals worldwide.  Pfizer recently announced their 5th dividend increase in 5 years.  They grew their dividend rate by 8.34% from $0.24 to $0.26 per share.  Pharmaceutical companies can offer risks due to expirations of drug patents and high R&D costs.  I don’t currently own any drug companies but may look closer into Pfizer due to increasing demand from an aging population.

Bristol-Myers Squib (BMY) - Bristol-Myers is another biopharmaceutical company that I may look into.  They recently announced a dividend increase of 2.86% from $0.35 to $0.36 per share.  This gives BMY a 5 year dividend growth streak.

Waddell & Reed Financial, Inc. (WDR) - Another company catching my eye due to being in an industry that my portfolio has no exposure to is Waddell & Reed.  WDR is an investment management company that has grown their dividend rate 4 years in a row.  Recently, WDR announced a dividend increase of 21.43%.  The dividend rate grew from $0.28 to $0.36 per share.  I’ll be looking more into this company soon.

As you can see there were a few interesting dividend increases this past month.  Out of all the dividend increases, I own one company (General Electric) and another is already on my watchlist (AT&T).  Of the rest, I have marked down 6 other companies that I’d like to look closer into and become more familiar with.  Many of these companies have a young dividend growth streak (4-5 years) and may be just starting what could become very long dividend growth streaks.

Were you pleased with any of these dividend increases?  Were any of them disappointments for you?  Share your thoughts in the comments below!

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5 Responses to Notable Dividend Increases: December 2013

  1. I own T and GE so the increases were welcomed. I need to check their cash flow payout percentage to see how that’s looking. These token increases are getting annoying so I need to look at T again.

    • Dan Mac says:

      When I’ve looked at T in the past I just couldn’t get too excited about owning them because of the low growth in both dividends and earnings. I agree they are raising the dividend by immaterial amounts just to keep the streak alive.

      I have them on my watchlist but not really sure why (I think it’s because of the higher dividend yield and long history of dividend growth). I always find other companies I’d prefer to own.

  2. Those AT&T dividend raises have been small for years, this should come as no surprise to anyone. However the starting yield along with the consistency (30 years straight) in those dividend raises makes up for it.

    • Dan Mac says:

      I think the starting yield and the long dividend streak is what has kept AT&T on my watchlist. However, the low growth is what has kept them out of my actual portfolio so far.

  3. Martin says:

    I own T as well. I think it is a great stock and the dividend growth is a great indicator that this company is doing well amid all those comments and articles (mostly at SA) saying that this company is doomed.

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