Here are some steps you can take to become a successful dividend investor:

1. Start by educating yourself about dividend investing. 

Read books and articles about dividend investing, and learn about the different types of dividends and how they are taxed.

2. Develop a clear investment strategy. 

Decide what your investment goals are and how dividend investing fits into your overall investment plan. This will help you determine what types of dividend stocks to look for and how much to invest in them.

3.Do your own research. 

Don't just rely on the advice of others or the recommendations of brokers. Take the time to thoroughly research potential investments, and consider using tools like stock screeners to help you identify promising dividend stocks.

4. Diversify your portfolio. 

Dividend stocks, like any other investment, can be volatile. To reduce the risks, make sure to diversify your portfolio by investing in a variety of stocks from different industries and sectors.

5. Stay disciplined. 

Investing in dividend stocks is a long-term strategy, so it's important to stay disciplined and avoid making rash decisions based on short-term market fluctuations. Stick to your investment plan and don't let emotions drive your decisions.

6. Be patient. 

Dividend investing can take time to pay off, so be patient and stick with it. Over time, the steady stream of income from dividends can add up and help you achieve your financial goals.

Thank you for reading!

Relevant Articles:

- How to become a successful dividend investor

There were several companies over the past week which announced their intent to raise dividends to shareholders. It is always great to see companies that are able to extend their long streaks of annual dividend increases. I find dividend increases to be a good indicator of how company executives feel about the near-term business environment. It also shows their confidence in the company’s growth prospects. 

Factors that boards of directors consider when setting the dividend include future earnings expectations, payout ratio and dividend yield relative to those at peer companies, as well as returns available on other income-oriented investments.

This is why I find it very helpful to review dividend increases every week for established dividend growth companies. To be included in this list, a company should have managed to reward shareholders with a dividend hike for at least ten years in a row.

I focused on companies that can afford to grow dividends for at least a decade. I figured that a company which has managed to boost dividends during a recession and an expansion, or even longer, is better suited for further research by a long-term dividend growth investor like me.

In my previews, I look at the most recent dividend increase, and compare it to the ten year average. While there are some year-over-year fluctuations in dividend growth, it is helpful to see if dividend growth is decelerating.

In addition, it is helpful to review trends in earnings and dividends, alongside dividend payout ratios. This is another indicator of dividend safety.

Last, but not least, I also try to review the valuation behind every company. I prefer to buy future dividend income at attractive valuations; overpaying for future dividend income is not a good business decision.

 I review the list of dividend increases every week, as part of my review process. I focus my attention on companies that raised dividends in the current week, and have at least a ten-year track record of annual dividend increases.

Only a company with a strong cash flow generating business can afford to grow dividends for a long period of time. Therefore, a business growing dividends for at least a decade is worth looking at for further research.

There were nine companies that fit the criteria. You can view the five companies in the table below:

This is a list of companies for further review. Most seem attractive as businesses, but that doesn’t mean that they should be invested in at any price, regardless of valuation.

This would likely be the last post for me this week. I will look forward to the Thanksgiving raises from Hormel Foods, McCormick, York Water Company, South Jersey Industries and Hingham Institution for Savings.

Relevant Articles:

- Nine Companies Rewarding Shareholders With Raises

- Twenty Dividend Growth Stocks Raising Dividends Last Week

- 13 Dividend Growth Stocks Rewarding Owners With A Raise

The S&P Dividend Aristocrats Index includes the S&P 500 companies that have managed to increase annual dividends for at least 25 consecutive years. 

It is an elite list of quality companies that I have on my watchlist. To get there a company would have to get to become a member of S&P 500, AND also raise dividends for 25 years in a row. Only a quality company with a strong business model and the ability to grow business and generate a growing amount of excess cashflow can get a spot on this list. Success is not an accident.

There are only 64 such companies in the US today. You can see the list of these companies here.

As part of my monitoring process, I narrowed the list down to 25 dividend aristocrats for further research. I applied the following criteria:

1) I reviewed the earnings histories for each dividend aristocrat over the past decade. I removed the companies that didn't grow earnings sufficiently over the past decade. I also removed companies where earnings per share has been flatlining over the past few years. Rising earnings per share are the fuel behind future dividend increases. For REITs I looked at FFO/share.

2) I reviewed the valuation for the remaining companies and removed those that have a P/E ratio above 25. This corresponds to an earnings yield of 4%, which is roughly on par with US Treasuries.

3) The next step I took was to remove companies which had very small recent dividend increases.  This included Dover, Emerson Electric, 3M, Realty Income, Stanley Black & Decker. 

4) Next, I focused on companies with a payout ratio below 65%. Dividend safety is of paramount importance. I calculate an adequate margin of safety in dividends through the dividend payout ratio.

5) I focused on companies with 5 year annualized dividend growth exceeding 3%/year. This is roughly in line with historical inflation trends. 

This leaves me with a list of 24 dividend aristocrats for research:

Note: Data as of 11/11/2022. Data is from sources believed to be reliable.

While the titled of the article states 24 dividend aristocrats for the next 24 years, I would not treat it as a recommendation to buy. I view it as a list of companies for further research. I encourage readers to do their own due diligence before putting money to work.

This is a sample analysis of Air Products & Chemicals (APD) for more information on how I review companies.

Relevant Articles:

- Dividend Aristocrats List for 2022

- Rising Earnings – The Source of Future Dividend Growth

- How to determine if your dividends are safe

I review the list of dividend increases every week, as part of my monitoring process. This helps me in my review of existing positions and in uncovering potential companies for future research. 

This is just one venue I use to monitor companies. Other ways include screening the list of dividend aristocrats, champions or achievers, before delving into each individual company that looks promising.

I believe in familiarizing myself with as many promising companies as possible, in an effort to be able to act quickly if they sell at the right price. 

In order to compile the list of companies I mention today, I looked at companies that have raised dividends over the past week and also have managed to increase dividends for at least ten years in a row.

The companies meeting that criteria are listed below:

Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). 

ADP boosted quarterly dividends by 20% to $1.25/share. The increased cash dividend marks the 48th consecutive year in which this dividend aristocrat has increased distributions to shareholders.

I loved this part from the press release: Our dividend is a cornerstone to our long-standing commitment to shareholder-friendly actions, and we are pleased to be one of a select group of companies with such a track record," said Carlos Rodriguez

The stock sells for 30.76 times forward earnings and yields 2.01%.

Atmos Energy Corporation (ATO) engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. 

The company hiked quarterly dividends by 8.82% to $0.74/share. This marked the 39th year of consecutive annual dividend increases for this dividend champion. Over the past five years, the company has managed to increase dividends at an annualized rate of 8.73%.

I loved this part from the press release: "The increased regular cash dividend reflects the company's continued strong financial position"

The stock sells for 18.56 times forward earnings and yields 2.67%.

Becton, Dickinson and Company (BDX) develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. 

The company raised quarterly dividends by 4.60% to $0.91/share. This marked the 51st year of consecutive annual dividend increases for this dividend king. Over the past five years, the company has raised dividends at an annualized rate of 3.84%.

The stock is selling for 18.75 times forward earnings and yields 1.60%.

Lancaster Colony Corporation (LANC) engages in the manufacturing and marketing of food products for the retail and foodservice markets in the United States. It operates in two segments, Retail and Foodservice. 

The company increased quarterly dividends by 6.25% to $0.85/share. This marked the 60th year of consecutive annual dividend increases for this dividend king. Over the past five years, the company has managed to increase dividends at an annualized rate of 7.78%.

The stock sells for 33.12 times forward earnings and yields 1.67%.

Roper Technologies, Inc. (ROP) designs and develops software, and engineered products and solutions. 

The company hiked quarterly dividends by 10.08% to $0.68/share. During the past five years, Roper managed to hike dividends at an annualized rate of 12.12%.

The stock sells for 31.13 times forward earnings and yields 0.62%.

Innospec Inc. (IOSP) develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally.

The company raised semi-annual dividends by 3.20% to $0.65/share. This is the second dividend increase this year, bringing the new payment 10.17% higher than the payment in the same time last year. This marked the 10th year of consecutive annual dividend increases for this newly minted dividend achiever. Over the past five years, the company managed to boost dividends at an annualized rate of 11.60%

The stock sells for 17.29 times forward earnings and yields 1.20%.

Assurant, Inc.(AIZ) provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific.

The company raised quarterly dividends by 2.94% to $0.70/share. This marked the 19th year of consecutive annul dividend increases for this dividend achiever. Over the past five years, the company has managed to hike distributions at an annualized rate of 5.60%.

The stock sells for 12.09 times forward earnings and yields 2.18%.

Farmers & Merchants Bancorp (FMCB) operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals.

The company raised semi-annual dividends by 9.21% to $8.30/share. This marked the 57 year of consecutive annual dividend increases for this dividend king. The company has managed to raise dividends at an annualized rate of 3.31% over the past five years.

The stock sells for 10.91 times forward earnings and yields 1.70%.

This article shows a review I do once a week. It usually takes a few minutes a week for me, though writing it down for your enjoyment takes longer than that.

This of course is just one step in the process. If I find a company that looks promising, I would run it through my screening criteria, analyze the company, and establish a proper valuation target for accumulation. 

Relevant Articles:

- How to read my stock analysis reports

- My screening criteria for dividend growth stocks

I review the list of dividend increases every week, as part of my portfolio monitoring process. I leverage several of my dividend investing resources for this effort.

I started by reviewing the list of all dividend increases for the week. There were 45 of them. I then narrowed the list down to the companies that have managed to boost dividends for at least ten years in a row. I also focused on companies that had a meaningful combination of yield and dividend growth.

The companies for this week’s review include:

Last week was one of the busiest for dividend increases since the first quarter. There were 54 companies that announced a dividend increase. If we are in a recession, apparently corporate America has not gotten the memo yet.

I review the list of dividend increases as part of my monitoring process. It helps me monitor existing positions, and identify companies for further research.

I usually focus on the companies that have managed to increase annual dividends for at least ten consecutive years. The companies that have raised dividends over the past week, and also have managed to increase dividends for at least ten years in a row are listed below. There were 20 such companies:

As part of my monitoring process, I review the list of companies that raised dividends over the past week. I tend to focus my attention mostly on companies that increase dividends for at least ten years in a row. This process helps me evaluate existing companies. In addition, it also helps me identify companies for further research.

Over the past week, there were twelve such companies. All of these companies raised dividends last week, and have also increased dividends for a decade (sans one):

Brown & Brown, Inc. (BRO) markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. 

The company increased quarterly dividends by 12.20% to $0.115/share. This is the 29th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, the company has managed to increase dividends at an annualized rate of 8.90%.

The stock sells for 26.66 times forward earnings and yields 0.75%.

Crown Castle (CCI) owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. 

The REIT hiked quarterly dividends by 6.50% to $1.565/share. It has increased dividends annually since 2014. The five year annualized rate of dividend growth is 8.70%.

The stock sells for 16.07 times forward FFO and yields 5.07%.

Healthcare Services Group, Inc. (HCSG) provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary.

The company increased quarterly dividends by 0.60% to $0.2150/share. This is the 77th consecutive increase since the initiation of dividend payments in 2003. This dividend achiever has increased dividends for 19 years in a row.

The stock sells for 37.28 times forward earnings and yields 6.49%.

Celanese Corporation (CE) is a technology and specialty materials company that manufactures and sells high performance engineered polymers in the United States and internationally. The company operates through three segments: Engineered Materials, Acetate Tow, and Acetyl Chain. 

The company increased quarterly dividends by 2.90% to $0.70/share. This is the 13th consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has raised dividends at an annualized rate of 27.50%.

“We have a decade-long history, which our shareholders value, of annual growth in the dividends paid per share across each year,” said Lori Ryerkerk, chairman and chief executive officer. “On a full year basis, this increase in the quarterly dividend represents an additional cash commitment of less than $10 million on current shares outstanding. This increase in the quarterly dividend is consistent with what was contemplated in the deleveraging plan which we outlined when we announced the acquisition of Mobility & Materials.”

The stock sells for 5.38 times forward earnings and yields 2.96%.

1st Source Corporation (SRCE) operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. 

The company increased quarterly dividends by 3.20% to $0.32/share. This is the 36th consecutive year of dividend increases for this dividend champion. Over the past decade, the company has raised dividends at an annualized rate of 7.60%.

The stock sells for 11.93 times forward earnings and yields 2.29%.

Hubbell Incorporated (HUBB) designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical Solution and Utility Solution. 

The company increased quarterly dividends by 6.70% to $1.12/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has raised dividends at an annualized rate of 10.10%.

The stock sells for 21.86 times forward earnings and yields 1.94%.

Lincoln Electric Holdings, Inc. (LECO) designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. 

The company increased quarterly dividends by 14.30% to $0.64/share. This marks the 27th consecutive annual dividend increase for this dividend champion. Over the past decade, the company has raised dividends at an annualized rate of 12.50%.

“Our dividend increase reflects the strong execution of our Higher Standard 2025 Strategy and our confidence in the strength of future cash flow generation through the cycle,” said Christopher L. Mapes, Chairman, President and Chief Executive Officer.

The stock sells for 16.16 times forward earnings and yields 1.95%. I should put it on my list for further research.

Magellan Midstream Partners, L.P. (MMP) engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates through Refined Products and Crude Oil segments. 

The MLP raised its quarterly distribution by 1% to $1.0475/unit.  Over the past decade, the company has raised dividends at an annualized rate of 10.20%. The past three years have seen annualized distribution growth below 3% however. This dividend achiever has increased annual distributions to limited partners for 21 years in a row.

The partnership yields 8.30%.

MGE Energy, Inc. (MGEE) operates as a public utility holding company primarily in Wisconsin. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other.

The company increased quarterly dividends by 5.20% to $0.4075/share

MGE Energy has increased its dividend annually for the past 47 years and has paid cash dividends for more than 110 years. Over the past decade, this dividend champion has raised dividends at an annualized rate of 4.10%.

The stock sells for 20.61 times forward earnings and yields 2.52%.

Middlesex Water Company (MSEX) owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. 

The company increased quarterly dividends by 7.80% to $0.3125/share.

This is the 50th year of consecutive annual dividend increases for this newly minted dividend king. Over the past decade, the company has raised dividends at an annualized rate of 4.20%.

The stock sells for 31.84 times forward earnings and yields 1.45%.

Pinnacle West Capital Corporation (PNW) Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. 

The company raised quarterly dividends by 1.80% to $0.865/share. This is the 11th consecutive year of annual dividend increases for this dividend achiever. Over the past decade, the company has raised dividends at an annualized rate of 4.70%.

The stock sells for 15.93 times forward earnings and yields 5.39%.

Prosperity Bancshares, Inc. (PB) operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. 

The company increased quarterly dividends by 5.80% to $0.55/share. This was the 25th year of consecutive annual dividend increases for this dividend champion. Over the past decade, the company has raised dividends at an annualized rate of 10.80%.

The stock sells for 12.54 times forward earnings and yields 3.04%.

Relevant Articles:

- Dividend Aristocrats list for 2022

- Dividend Kings list for 2022

- Dividend Champions list for 2022

The Dividend Aristocrats index includes companies that are members of S&P 500, which have managed to raise dividends annually to their shareholders for at least 25 years in a row. This is an elite list of companies, most of which are worthy of further research by enterprising dividend growth investors.

The list was launched in 2005, and back-tested to include data going as far back as 1989. I generally like the companies on it, though I prefer the more detailed dividend champions list.

As part of my investment strategy, I focus on quality dividend growth companies. I view the ability to grow dividends annually for over a quarter of a century as a quality filter that is being met. Therefore, many Dividend Aristocrats fit the bill.

Of course, that doesn’t mean that all companies will succeed or are good investments today. It just means that these companies are good candidates for further research.

I recently browsed through my archives, and stumbled upon the dividend aristocrats list for 2011. The article was written in December 2010, when there were only 41 dividend aristocrats.

I went ahead and reviewed these companies, in order to see how they ended up doing in the subsequent 10 years.

You can view the list of companies from 2011 in thisarticle, including fundamentals information such as P/E, dividend yields.

You can view the subsequent performance in this table below:

I reviewed the performance of each company. It looks like there were several companies that delivered outstanding total returns performance.

Let's look at how a coffee can type investor would have done. Image an investor started with an equally weighted portfolio, where they put $100 into each company on 12/31/2010. They invested a total of $4,200. Then they simply reinvested dividends and did nothing else. They never sold a share of anything. Fast forward to 9/30/2022 and the portfolio would have concentrated itself nicely into:

The fascinating part is that only two of these companies ended up cutting dividends. Those were Pitney Bowes and Century Link (now Lumen).

There were four companies that were acquired. This just goes to confirm my belief that many dividend aristocrats are good acquisition targets.

I also calculated the yields on cost for an investor who bought in late 2010, when I originally posted the article. This was done only for the companies that were not acquired. It does include the companies that cut dividends down the road.

If you asked me what the best values were at the time, I would not have expected that these would be the best ideas.

I did specify a few of the values in my 2011 article, but did not expect Standard & Poor's Global (SPGI), Sherwin-Williams (SHW), and Cintas (CTAS) to be the best performers. 

A few of the companies that didn’t do so well however, like Exxon (XOM), Coca-Cola (KO), were the types that I frequently talked about on this site.

Others I spoke frequently about were (to name a few) Johnson & Johnson (JNJ), Target (TGT), McDonald's (MCD), Wal-Mart (WMT), 3M (MMM), PepsiCo (PEP), and they did provide a decent return to shareholders.

All of this data goes to show me that the future is cloudy at best. Very few are able to forecast accurately, and position their investments in a way as to allow for maximum gain.

In other words, we will make mistakes when we invest. There is no way around that. The goal is to minimize impact of mistakes when we invest.

This is why I believe in diversification. If someone were to invest in equities, it makes sense to diversify widely. That gives you the best possible chance of owning a few of the investments that may turn out to be the best. That being said, you may still want to focus on quality, and not just randomly pick companies.

I do not believe in concentrating investments. That’s because you may be wrong, and if you have too much in a certain company, you may lose a little too much.

I believe in allocating investments equally. This gives each investment an equal chance of success.

However, once the money is allocated to the portfolio, I believe in letting each investment work its magic without touching it. I do not believe in micromanaging management, nor do I believe too much activity adds any value. On the contrary, I believe that too much monitoring may cause the investor to do something silly like selling the big winners early, and adding to the cheaper value traps that seldom deliver. You want to avoid cutting the flowers to water the weeds.

So in other words, I believe in letting the winners ride and rise for as long as possible. While I am a fan of diversification and equal weighting from the start, I am all for letting the winners become a concentrated positions merely because they are successful. I am not a fan of re-balancing. I am also beginning to warm up to the idea of automatically reinvesting dividends back in the same company that distributed them (DRIP).

Your opinions may be wrong. Your strategy may have blind spots. You need to be aware of that, and try to learn and create an environment that takes care of those blind spots.

I just find these types of articles to be really helpful for me. Hope they are as helpful to you too.

Relevant Articles:

- Dividend Portfolios – concentrate or diversify?

- Concentrated versus Diversified Dividend Investing

- How to properly weight dividend portfolio holdings

The companies include:

McDonald's Corporation (MCD) operates and franchises McDonald's restaurants in the United States and internationally. 

The company raised its quarterly dividend by 10.10% to $1.52/share. McDonald's is a dividend aristocrat which has increased dividends for 46 consecutive years. Over the past decade, the company has managed to grow dividends at an annualized rate of 7.60%

The stock sells for 24.14 times forward earnings and yields 2.24%.

A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. 

The company increased quarterly dividends by 7.10% to $0.30/share. This is the 30th consecutive annual dividend increase for this dividend aristocrat. Over the past decade, the company has managed to grow dividends at an annualized rate of 21.60%

"This dividend increase reflects our confidence in the stability in our replacement demand inherent in our water heating and boiler businesses, as well as our focus on returning capital to shareholders," said Kevin J. Wheeler, chairman and chief executive officer. "We are proud to say the five-year compound annual growth rate of our dividend rate is more than 15%, and that we have increased our dividend each year for over 25 years."

The stock sells for 14.28 times forward earnings and yields 2.46%.

Avient Corporation (AVNT) provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates through three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution.

The company raised its quarterly dividend by 4.20% to $0.2475/share, representing the twelfth consecutive annual increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 21.60%

"We are pleased to raise our dividend for the twelfth consecutive year," said Robert M. Patterson, Chairman, President and Chief Executive Officer, Avient Corporation.  "Since first introducing the dividend in 2011, it has increased at a compounded annual growth rate of 16%.  This is a reflection of our portfolio transformation, with 100% of sales now coming from specialty applications, as well as our increased presence in higher growth and less cyclical markets.  While the near-term presents macro-economic uncertainties, we remain confident in our ability to generate strong free cash flow, continue to invest in innovation for the long-term, and return value to shareholders." 

The stock sells for 10.92 times forward earnings and yields 3.09%.

Agree Realty Corporation (ADC) is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. 

The company increased its monthly dividends by 2.60% to $0.24/share. This represents an annualized increase of 5.70% over the dividend paid in the fourth quarter of 2021. Over the past decade, the company has managed to grow dividends at an annualized rate of 4.20%

The stock sells for 16.82 times forward FFO and yields 4.20%

THOR Industries, Inc. (THO)  designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe.

The company raised quarterly dividends by 4.70% to $0.45/share. Over the past decade, the company has managed to grow dividends at an annualized rate of 21.60%

The stock sells for 9.18 times forward earnings and yields 2.28%.

Relevant Articles:

- Three Dividend Growth Stocks Increasing Shareholder Dividends

- Six Dividend Aristocrats Expected to Boost Dividends in October 2022

I review the list of dividend increases as part of my monitoring process. This helps me review the story behind companies I already own. It also helps me review companies for potential inclusion into my watchlist.

A long track record of annual dividend increases is an indication of a quality company with a strong business model. Its strength could be due to a favorable environment, competitive position, unique product, patent or trademark, a strong brand, a loyal group of customers or a combination of the above. 

I find it helpful to identify these businesses and place them on my list for further research.

During the past week, there were three companies with long histories of annual dividend increases, which also hiked distributions to shareholders.

The companies include:

Bank OZK (OZK) provides various retail and commercial banking services. It accepts various deposit products, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. 

The bank raised its quarterly dividend by 3.10% to $0.33/share. This is a 13.79% increase over the dividend paid during the same time last year. Bank OZK has increased its quarterly cash dividend on its common stock in each of the last forty-nine quarters.

Over the past decade, the company managed to increase dividends at an annualized rate of 18.16%. The five year average is at 12.07%, which is still very impressive. This dividend achiever has managed to increase annual dividends in each year since 1997.

The stock sells for 9.21 times forward earnings and yields 3.1%

RPM International Inc. (RPM) manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide.

The company increased its quarterly dividends to shareholders by 5% to $0.42/share. This action marks RPM’s 49th consecutive year of increased cash dividends paid to its stockholders. RPM International is a dividend champion.

“The incredible efforts of RPM associates and their ability to collaboratively address the challenges we’ve faced have enabled RPM to continue to drive growth, at the same time we are achieving greater operational efficiency across all our businesses,” stated Frank C. Sullivan, RPM chairman and CEO. “We remain committed to delivering sustainable, long-term value for our stockholders, and our 49th consecutive year of increasing our dividend exemplifies this commitment.”

Over the past five years, it has managed to grow dividends at an annualized rate of 13.40%.The stock sells for 19.60 times forward earnings and yields 1.69%.

Trinity Bank, N.A. (TYBT) provides personal and business banking products and services in Texas. 

The bank raised semi-annual dividends by 4% to $0.78/share. This is a 6.85% hike over the dividend paid during the same time last year. Trinity Bank has now increased its semiannual dividend each six months since dividends were initiated in 2012. Over the past five years, it has managed to grow dividends at an annualized rate of 9.27%.

CEO Opitz stated, "I am proud of Trinity Bank's history of performance and earnings which has made it possible to share a significant piece of that success with our shareholders through these cash dividends. Our excellent employees, who are committed to building long-term banking relationships and delivering exceptional customer experiences, are the ones to thank for this success."

The stock sells for 15.50 times earnings and yields 1.79%.

Relevant Articles:

- Six Dividend Aristocrats Expected to Boost Dividends in October 2022

I expect the following dividend aristocrats to increase their dividends in October 2022. The companies include:

A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. 

The company last raised dividends by 7.69% to $0.97/share in October 2022. It has a five year annualized dividend growth rate of 17.20%.

I expect a raise in the 6% -7% range to $0.30/share. This would be the 29th year of consecutive annual dividend increases for this dividend aristocrat.

Right now, the stock sells for 14.20 times forward earnings and yields 2.20%. check my analysis of A.O. Smith (AOS) for more information about the company.

AbbVie Inc. (ABBV) discovers, develops, manufactures, and sells pharmaceuticals in the worldwide.

The company last raised dividends by 8.46% to $1.41/share in October 2021. It has a five year annualized dividend growth rate of 17.90%.

I expect a raise in the 7% -8% range to $1.52/share. This would be the 50th year of consecutive annual dividend increases for this dividend aristocrat.

Right now, the stock sells for 10.01 times forward earnings and yields 4.06%. Check my analysis of Abbvie for more information about the company.

Brown & Brown, Inc. (BRO) markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. 

The company last raised dividends by 10.80% to $0.1025/share in October 2021. It has a five year annualized dividend growth rate of 8.60%.

McDonald's Corporation (MCD) operates and franchises McDonald's restaurants in the United States and internationally. 

The company last raised dividends by 6.98% to $1.38/share in September 2021. It has a five year annualized dividend growth rate of 7.80%.

I expect a raise in the 5% - 6% range to $1.45/share. This would be the 46th year of consecutive annual dividend increases for this dividend aristocrat.

McDonald's failed to raise dividends in September 2022. This has happened before. In 2020, the fast-food giant hiked dividends in early October. In 2015, it hiked dividends in November.

Right now, the stock sells for 23.72 times forward earnings and yields 2.37%.

V.F. Corporation (VFC) engages in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia-Pacific. It operates through three segments: Outdoor, Active, and Work. 

The company last raised dividends by 2.04% to $.50/share in October 2021. It has a five year annualized dividend growth rate of 6.50%.

I expect a raise in the 1% - 2% range to $0.51/share. This would be the 50th year of consecutive annual dividend increases for this dividend aristocrat.

Right now, the stock sells for 10.89 times forward earnings and yields 6.93%.

West Pharmaceutical Services, Inc. (WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products.

The company last raised dividends by 5.88% to $0.18/share in October 2021. It has a five year annualized dividend growth rate of 7.10%.

I expect a raise in the 5% - 6% range to $0.19/share. This would be the 30th year of consecutive annual dividend increases for this dividend aristocrat.

Right now, the stock sells for 27.43times forward earnings and yields 0.29%.

Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power.

The company has managed to increase annual dividends for 17 years in a row. The last dividend increase was in July 2022, when the Board of Directors hiked quarterly dividends by 8.30% to $1.57/share.

Over the past decade, this dividend achiever has managed to increase dividends at an annualized rate of 15.50%. However, the five-year rate is a more reasonable 7% annualized.

The company managed to grow earnings per share at a more modest pace over the past decade. Earnings per share increased from $8.67 in 2012 to $14.61 in 2021. However, between 2012 and 2017, earnings per share were largely flat.

The company is cyclical, so earnings per share would swing unfavorably when the economy gets soft. This should not be an issue, if the long-term trend in EPS is higher over time.

Cummins has five business segments.

The Engine segment (33% of sales) serves on-highway and off-highway markets (such as construction equipment);

Distribution (29% of sales) provides aftermarket support;

Components (24% of sales) manufactures filtration products, fuel systems, and aftermarket services for commercial vehicle applications;

Power Systems (14% of sales) is a global supplier of power generation systems, components and services; and

New Power, the newest business segment, comprises Cummins' electrified power and hydrogen portfolios.

There are a few positive things to state about Cummins. It is one of the largest manufacturers of engines, and is known for quality. It has a strong position in its markets, and strives to be the lowest cost producers as well. It tries to expand into related markets and leverage complementary businesses. The company has strong brands underpinned by its high-performing and extremely durable engines. Customers also value Cummins’ ability to enhance the value of their trucks, leading to product differentiation. Cummins commands strong brand loyalty among customers, despite fierce competition in the industry. The company's strong reputation is built on its demonstrated history of consistently providing customers with durable and fuel-efficient products. Cummins' strong product performance empowers customers to lower the total cost of their operations.

Cummins has established relationships with large customers like Paccar, Fiat Chrysler, Daimler, Navistar etc and a global presence. CMI has more than 600 company-owned and independent distributor locations and about 9,000 dealer locations in over 190 countries and territories. CMI's key markets are the on-highway, construction and general industrial markets. About 55% of total revenue are typically from the U.S., with 45% coming from international operations.

The company believes that decarbonization is an opportunity for future growth. Stricter regulations can benefit the business going forward as well. The company continues to innovate as well, through investments in technologies to eliminate fossil fuels in trucking and power generators. As governments want less carbon emissions, Cummins investments in the area should benefit the company and yield dividends for shareholders.

Cummins tries to grow through strategic acquisitions as well. For example, earlier this year Cummins acquired Meritor for $3.70 Billion. Meritor is a provider of drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial and industrial vehicles.

Management expects this acquisition to be accretive to earnings per share, and generate significant synergies in the process, while also expanding product offerings in the powertrain components.

While demand for trucking is cyclical, there is the possibility for long-term increased demand for trucking as ecommerce increases transportation needs and as some emerging economies develop the need for more efficient trucks. Truck replacement cycles should be another boon for companies like Cummins. 

The company increases dividends at a faster rate between 2012 and 2017, which translated into the payout ratio increasing in the first five years of the past decade. Over the past five years however, it seems like dividend growth has closely followed earnings growth. This is evident by the small range in the payout ratio between 2018 and 2021.

The company has managed to repurchase a quarter of shares outstanding over the past decade.

The stock is attractively valued today at 12.20 times forward earnings and yields 2.80%

Relevant Articles:

- Eight Dividend Growth Companies Rewarding Owners With a Raise Last Week

As part of my monitoring process, I review the list of dividend increases every week. This exercise is helpful in monitoring the progress for existing holdings in my dividend growth portfolio. It is also a helpful exercise to uncover hidden gems for further research.

I like to review the press releases, and see if I can see something that jumps at me. The tone of press releases, the rate of change in dividends, when compared to historical averages and growth in fundamentals, gives me a very decent approximation if management is bluffing or is simply staying the course.

I usually focus on the companies that have managed to increase dividends for at least a decade. During the past week, the following companies raised dividends for their shareholders:

Lockheed Martin Corporation (LMT) engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. 

The company increased its quarterly dividend by 7.10% to $3/share. This is the 20th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 12.50%.

The stock sells for 14.45 times forward earnings and yields 2.90%.

Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development.

The company increased its quarterly dividend by 8.20% to $0.53/share. Starbucks initiated its dividend in 2010 and has increased it in each of the past 12 years. Over the past decade, the company has managed to increase dividends at an annualized rate of 20.70%. 

The stock sells at 29.32 times forward earnings and yields 2.52%.

Fortis Inc. (FTS) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. 

The company increased its quarterly dividend by 5.60% to $CAD 0.565/share, marking 49 consecutive years of increased dividends. The company has managed to grow dividends at an annualized rate of 5.90% over the past decade.

The stock sells at 18.05 times forward earnings and yields 4.40%. Check my analysis of Fortis for more information about the company.

Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company worldwide. 

The company increased quarterly dividends by 5.10% to $1.03/share. This was the 12th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 10.70%. 

The stock sells for 19.29 times forward earnings and yields 2.35%.

Ingredion Incorporated (INGR) produces and sells starches and sweeteners for various industries. It operates through four segments: North America; South America; Asia-Pacific; and Europe, Middle East and Africa. 

The company increased quarterly dividends by 9.20% to $0.71/share. This is the 12th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 15.70%. The pace of annualized dividend growth has slowed down to 2% over the pat 3 years however.

The stock sells for 11.28 times forward earnings and yields 3.53%

The First of Long Island Corporation (FLIC) operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations.

The company raised its quarterly dividend by 5% to $0.21/share. This was the 26th year of consecutive annual dividend increases for this dividend champion. Over the past decade, the company has managed to increase dividends at an annualized rate of 6.90%. 

The stock sells at 8.18 times forward earnings and yields 4.64%.

City Holding Company (CHCO) operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States. 

The company increased quarterly dividends by 8.30% to $0.65/share. This was the 11th year of consecutive annual dividend increases for this dividend achiever. Over the past decade, the company has managed to increase dividends at an annualized rate of 5.50%. 

The stock sells for 14.07 times forward earnings and yields 2.93%.

Relevant Articles:

- Dividend Achievers Offer Income Growth and Capital Appreciation

- Dividend Champions List for 2022

- Eight Companies Expected to Raise Dividends in September

Microsoft Corporation (MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide.

The company just raised its quarterly dividend by 9.67% to 68 cents/share on September 20th, 2022. Microsoft has managed to increase annual dividends for 17 consecutive years.

Annual dividends increased from 76 cents/share in 2012 to $2.42/share in 2022. At the new rate, the forward dividend is $2.72/share.

Earnings per share have increased from $2/share in 2012 to $9.65/share in 2022. Microsoft is expected to generate $10.98/share in 2023 and $12.82/share in 2024.

Future growth would be driven by its cloud based platform Azure, as corporations move to the cloud. It would be driven from Office, as more customers move to use software as a service, rather than buy licenses. Linkedin could help growth too, as would Xbox. Windows is essentially a utility, on which a lot of other applications run.

Strategic acquisitions could also boost the bottom line. The company is in the process of acquiring Activision Blizzard.

Earnings per share growth has been aided by share buybacks. Microsoft reduced the number of shares outstanding from 8.506 billion in 2012 to 7.504 billion in 2022.

The dividend payout ratio has moved around over the past decade, but seems reasonable at 25% today. It is possible that Microsoft may decide to grow dividends at a faster rate than earnings over the next decade. At least there is room in the payout ratio. 

The stock is not cheap today at 23.65 times forward earnings and a dividend yield of 1.10%. However, I will add to my position, because I believe it can deliver solid yields on cost and good returns over the next decade.

 Relevant Articles:

- Eight Companies Expected to Raise Dividends in September