Friday, November 28, 2008

* NIKE (NKE), Donaldson (DCI), Hormel (HRL), McCormick (MKC) and Others Increase Dividends

Dividend investing in the classic implementation focuses on identifying solid companies with a record of growing their dividends each year; and an expectation that it will continue into the future. The focus is not solely on yield but a combination of yield and dividend growth. Often it is the lower yield, higher growth, security that will provide the best return over time.

Here are several stocks living up to shareholders' expectations by raising their cash dividends:
  • NIKE (NKE) Boosts Dividend by 8.7% to $0.25/share (2.07%)
  • Donaldson (DCI) Boosts Qtr. Dividend 5% to $0.115/share (1.53%)
  • South Jersey Industries (SJI) Raises Dividend 10% to $0.2975/share (3.11%)
  • United Bankshares (UBSI) Increases Dividend 3% to $0.29/share (3.41%)
  • Hormel Foods (HRL) Raises Annual Dividend 2.6% to $0.76/share (2.89%)
  • Becton, Dickinson and Company (BDX) Boosts Qtr. Dividend by 15.8% to $0.33/share (2.08%)
  • RGC Resources (RGCO) Increases Dividend by 10% to $0.32/share (4.97%)
  • The York Water Company's (YORW) Boosts Qtr. Dividend by 4.1% to $0.126/share(4.48%)
  • McCormick & Company (MKC) Boosts Dividend 9% to $0.24/share (3.23%)
  • Landauer (LDR) Increases Dividend 5% to $0.525/share (3.47%)
After running these companies through my D4L-PreScreen.xls model, DCI and BDX, both Dividend Achievers, had NPV of MMA Differentials close enough to earn a more complete evaluation. HRL, MKC and LDR had positive NPV of MMA Differentials, but below the level required level for a more detailed evaluation. None of the others warranted additional consideration.

Disclosure: No position in the aforementioned stocks.

Tags: [BDX] [DCI] [HRL] [LDR] [MKC] [NKE] [RGCO] [SJI] [UBSI] [YORW]