Over the past week, the buy and hold mentality of every investor was tested by
the precipitous declines in major stock market indexes. Despite the facts that
US corporations are sitting on a record pile of cash, that corporate profits are
increasing and that stocks are trading at a fairly cheap multiple based off
historical valuations, investors are fleeing the market and going into fixed
income securities. Yet, despite all the gloom in the markets, there were several
companies which chose to ignore the fear of another recession. These
corporations showed their bullishness in their businesses by approving higher
dividend payments to shareholders. The companies announcing dividend increases
over the past week include: Illinois Tool Works Inc. (NYSE: ITW ) manufactures a
range of industrial products and equipment worldwide. The company increased its
quarterly dividend by 5.90% to 36 cents per share. Illinois Tool Works is a
dividend champion , which has increased its quarterly dividend in each of the
past 48 years. The stock currently yields 3.10%. ( analysis ) Dover Corporation
(NYSE: DOV ) and its subsidiaries manufacture industrial products and
components, as well as provide related services and consumables in the United
States and internationally. The company increased its quarterly dividend by
14.50% to 31.50 cents per share. Dover Corporation is a dividend aristocrat ,
which has increased its quarterly dividend in each of the past 56 years. The
stock currently yields 2.30%. ( analysis ) Leggett & Platt Inc. (NYSE: LEG )
designs and produces a range of engineered components and products worldwide. It
operates in four segments: Residential Furnishings, Commercial Fixturing &
Components, Industrial Materials, and Specialized Products. The company
increased its quarterly dividend by 3.70% to 28 cents per share Leggett & Platt
is a dividend aristocrat , which has increased its quarterly dividend in each of
the past 40 years. The stock currently yields 5.50%. Carlisle Companies Inc.
(NYSE: CSL ) manufactures construction materials in the United States and
internationally. The company increased its quarterly dividend by 5.90% to 18
cents per share. Carlisle Companies is a dividend champion , which has increased
its quarterly dividend in each of the past 34 years. The stock currently yields
1.90%. Harleysville Group Inc. (NASDAQ: HGIC ), through its subsidiaries,
engages in the property and casualty insurance business primarily in the eastern
and midwestern United States. The company increased its quarterly dividend by
5.60% to 38 cents per share. Harleysville Group is a dividend champion , which
has increased its quarterly dividend in each of the past 25 years. The stock
currently yields 5.20%. Aqua America Inc. (NYSE: WTR ), through its
subsidiaries, operates regulated utilities that provide water or wastewater
services in the United States. The company increased its quarterly dividend by
6.50% to 16.50 cents per share. Aqua America is a dividend achiever , which has
increased its quarterly dividend for 20 years in a row. The stock currently
yields 3.10%. Buckeye Partners L.P. (NYSE: BPL ) owns and operates refined
petroleum products pipeline systems in the United States. The master limited
partnership increased its quarterly distributions by 1.25% over the prior
quarter distribution to $1.0125 per unit. Buckeye Partners is a dividend
achiever , which has increased its quarterly dividend for 16 years in a row.
Current yield: 6.60%. Monsanto Company (NYSE: MON ), together with its
subsidiaries, provides agricultural products for farmers in the United States
and internationally. It operates in two segments, Seeds and Genomics, and
Agricultural Productivity. The company increased its quarterly dividend by 7.10%
to 30 cents per share. Monsanto Company is a dividend achiever , which has
increased its quarterly dividend for 11 years in a row. The stock currently
yields 1.70%. Boardwalk Pipeline Partners L.P. (NYSE: BWP ) through its
subsidiaries, engages in the interstate transportation and storage of natural
gas in the United States. The master limited partnership increased its quarterly
distributions by 0.50% over the prior quarter distribution to 52.50 cents per
unit. Boardwalk Pipeline Partners has increased its quarterly dividend for six
years in a row. Current yield: 7.40%. Alterra Capital Holdings Limited (NASDAQ:
ALTE ), through its subsidiaries, provides specialty insurance and reinsurance
products to corporations, public entities, and property and casualty insurers
principally in Bermuda, Ireland, the United States, and the United Kingdom. The
company increased its quarterly dividend by 16.70% to 14 cents per share.
Alterra Capital Holdings Limited has increased its quarterly dividend for 11
years in a row. The stock currently yields 2.60%. STERIS Corporation (NYSE: STE
) develops, manufactures, and markets infection prevention, contamination
control, microbial reduction, and surgical support products and services to
healthcare, pharmaceutical, scientific, research, industrial, and governmental
customers worldwide. The company increased its quarterly dividend by 13.30% to
17 cents per share. STERIS Corporation has increased its quarterly dividend for
7 years in a row. The stock currently yields 2.20%. Hawkins, Inc. (NASDAQ: HWKN
) manufactures, blends, and distributes bulk and specialty chemicals in the
United States. It operates through two segments, Industrial and Water Treatment.
The company increased its quarterly dividend by 6.25% to 32 cents per share.
Hawkins has increased its quarterly dividend in each of the past 7 years. The
stock currently yields 1.90%. The particular bullish fact about these companies,
is that each one of them has a long history of consistently raising dividends.
For them, sharing their business success with shareholders in the form of paying
higher dividends every year is business as usual.I only wish I had more cash on
hand to add to my portfolio of dividend paying stocks. This Warren Buffett quote
summarizes my opinion on stocks going lower from here: "Be fearful when others
are greedy, and be greedy when others are fearful." Full Disclosure: Long ITW.
For more information visit DividendGrowthInvestor.com .
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