dividend increase, dividend raiseFebruary was a good month full of dividend increases to keep the dividend growth investor happy.  Quite a few companies on my watch list and in my dividend growth stock portfolio had nice increases that I am pleased with.  Below I have highlighted some of the companies that grew their dividends this past February.  These aren’t recommendations for investment but could be used to get an idea of some potential candidates for your portfolio.

Consolidated Edison (ED) - Consolidated Edison is a utility company delivering electricity, natural gas and steam to customers.  They have increased their dividend for 39 years.  Utility companies generally offer good dividend yields but lower growth to dividend growth investors.  This month ConEd raised their quarterly dividend by 1.66% from $0.605 to $0.615.

Limited Brands (LTD) - Limited Brands is a retail company with brands such as Victoria’s Secret and Bath& Body Works.  Limited Brands has increased their quarterly dividend by 20% from $0.25 to $0.30 per share.

3M Company (MMM) - 3M is a diversified technology company operating in six segments including Industrial and Transportation, Health Care, Consumer and Office, Safety Security and Protection Services, Display and Graphics and Electro and Communications.  3M has managed to increase their dividend for 55 years in a row.  The most recent dividend increase was by 7.63%.  Shareholders will now receive a quarterly dividend in the amount of $0.635 compared to the previous $0.59 per share.

Mastercard (MA) – Mastercard is a global payments and technology company.  The credit card business has been good for MA shareholders as the company has increased their quarterly dividend by 50% from $0.30 to $0.60 per share.  Most dividend growth investors will not like the low yield.  However, I feel there is a lot of potential for growth from this company as credit and debit cards are the currency of the future.

Mattell Inc. (MAT)  - Mattell is a toy company with brands such as Barbie, Polly Pocket and Monster High.  Mattell sells lots of toys thus allowing them to increase their quarterly dividend from $0.31 to $0.36 per share.  This is a very nice increase of 16.13%.

Hasbro (HAS) - Hasbro is another toy company with brands such as Playskool, Nerf, G.I. Joe, Parker Brothers and Tonka.  Toys must be a good business to be in because they have been able to increase their dividend 10 years in a row.  The most recent increase is from $0.36 to $0.40 per share each quarter.  This is an increase of 11.12%.

Phillips 66 (PSX) – Phillips 66 was spun off from ConocoPhillips just last year.  They operate in refining and marketing of oil and petroleum products.  The spun off company is keeping the same dividend growth mentality as its parent company.  PSX increased their quarterly dividend by 25% from $0.25 to $0.3125 per share.

Dr Pepper Snapple Group (DPS) - Dr. Pepper Snapple is a non alcoholic beverage manufacturer and distributor in the United States, Canada and Mexico.  They recently increased their dividend by 11.77% from $0.34 to $0.38 per share each quarter.

Lorillard Inc. (LO) - Lorillard is a cigarette manufacturer in the United States with brands such as Newport and Kent.  They have increased their dividend for 6 years in a row.  The most recent increase was by 6.45% from $0.51667 to $0.55 per share.

Genuine Parts (GPC) - Genuine Parts has increased their dividend for 57 years in a row!  The company engages in replacement parts automotive, industrial and the office.  Most recently, GPC increased their dividend by 8.59% from $0.495 to $0.5375 per share each quarter.

Kimberly-Clark (KMB) - Kimberly Clark is a consumer products company with brands such as Kleenex, Huggies and Kotex.  The company has increased their dividend for 41 years in a row.  KMB’s most recent dividend increase was from $0.74 to $0.81 per share.  This is a dividend growth rate of 9.46%.

Waste Management (WM) - Waste Management is a trash servicing company in the United States.  They provide collection, transfer, recycling and disposal services.  Trash is a good business to be in.  WM has increased its dividend each year for the past 10 years.  This year WM only increased it’s dividend rate by 2.82%.  Shareholders will now receive $0.365 per share compared to the previous $0.355 each quarter.

Wal-Mart Stores (WMT) - Wal-Mart is the global discount retailer offering the lowest prices to customers around the world.  Wal-Mart has a good dividend growth policy as they have increased their dividend for 39 years in a row.  They continue the dividend growth with a recent increase of 18.24%!  Shareholders will be happy to receive $0.47 per share compared to the previous $0.3975 each quarter.

Deere & Co. (DE) - Deere & Company operates in three segments:  Agriculture and Turf, Construction and Forestry and Financial Services.  If you live near agricultural communities you are familiar with the John Deere green tractors.  Deere & Company has increased its dividend annually for the past 10 years.  The most recent dividend increase was from $0.46 to $0.51 per share.  This is an increase of 10.87%.

Coca-Cola (KO) - Coca-Cola is the global beverage leader with brands such as Coke, Diet Coke, Sprite and Fanta.  They have a strong dividend growth history with 51 years of increasing dividends.  Investors in Coca-Cola Company will now receive $0.28 per share compared to the previous $0.255.  This is a dividend growth rate of 9.81%.

As you can see there were a large amount of dividend increases this past month.  I’ve tried to pick out the ones that dividend growth investors would be most interested in.  I was very pleased this past month as I own 4 of these companies that raised their dividends this past month.

Were there any dividend increases you were particular excited about this past month?  Please share in the comments below!

If you haven’t already done so, be sure to sign up for my Free Dividend Growth Newsletter.  I’m working on the very first issue to come out soon!

Disclosure: I am long DE, HAS, KO and WMT.

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12 Responses to Notable Dividend Increases: February 2013

  1. I was very happy with the increases from last month. Like you I own 4 of the companies listed, although I’d like to own several more.

    • Dan Mac says:

      JC I agree there are some others on this list I wouldn’t mind owning as well! I always get excited with big dividend increases because they usually exceed any kind of raise I could hope for at my job. It’s fun seeing your income go up year after year by 10% or more!

  2. I was definitely excited about the Lorillard and Walmart Dividend increases. Hopefully I’ll be able to pick up some of these shares in the next correction.

    • Dan Mac says:

      Marvin, gotta love the dividend increases! I don’t own any Lorillard but wouldn’t mind adding to my WMT position for sure! Can’t help but get excited when they give me an 18% raise!

  3. kolpin says:

    thanks for the update. I am long many of these stocks and hoping to acquire LO if it pulls back some more in the next month or so. I just sold WM due to its low dividend growth. do you have any opinion on DPS?

    • Dan Mac says:

      Thanks for the comments Kolpin. I personally haven’t really ever looked into DPS mainly because I’m already interested in KO and PEP for my portfolio. However that was a nice dividend increase and I just looked and the yield is pretty good around 3.5%. Might be a company worth looking further into!

  4. Mr. 1500 says:

    I just read in Warren Buffett’s annual letter that Coke is one company he owns shares of and respects. Time to take a look at that one.

    Were there any dividend increases you were particular excited about this past month?

    I was surprised that Apple didn’t announce a dividend at their recent shareholder meeting. They are holding 137 billion. Much of it is overseas, but they still could have done something.

    • Dan Mac says:

      Thanks for stopping by Mr. 1500! I know Buffett loves Coke and I certainly agree with him on that one. I have read that he now earns more dividend income from Coke each year than he originally invested to purchase his shares! That is the ultimate investment in my opinion!

      I don’t know much about Apple so I can’t really comment on their dividend policy. I agree that they have a ton of cash and if I were a shareholder I wouldn’t mind them bringing some of that cash back home and to my bank account.

  5. Integrator says:

    Mastercard has been kind to shareholders (I’ve owned since IPO), but historically not for the dividend increases. Like you, I think there is a lot of potential for them to increase the dividend 10x, to put it on a yield closer 2.5%, with sustained growth at 10% and beyond from there. At a current payout of circa 7%, I see some sustained increases possible from here.

    • Dan Mac says:

      Thanks for the comment Integrator. That is interesting that Mastercard hasn’t had very good dividend increases in the past. This 50% increase certainly is good. I haven’t ever really looked into Visa or Mastercard due to the low yields and high P/E’s but am considering starting a position in at least one of them because like you I see the ability for good dividend growth going forward.

  6. Martin says:

    I am happy about Lorillard, which I added another position to my portfolio (added more shares) recently. I do not hold other stocks in your list yet, but plan to buy them as soon as my accumulation strategy permits :)

    • Dan Mac says:

      That’s great Martin! It’s always great when one of our positions increases the dividend rate. There are certainly some portfolio worthy companies on this list in my opinion that many people would benefit from owning.

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