11 High Dividend Growth Stocks in 2012

Increasing dividends is par for the course for these companies

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11 High Dividend Growth Stocks in 2012

Family Dollar Stores (NYSE:FDO) operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. In January, the company raised annual distributions by 16.70% to 84 cents per share. The ten year dividend growth rate has been 11.80% per year. This dividend aristocrat has raised distributions for 36 years in a row. The stock is valued at 17.80 times earnings, yields 1.30% and has an adequately covered distribution. Because of the low current yield, it is outside of my buy range. As a result I do not plan on adding to my position in the stock, and I would consider re-investing dividends received in other attractively priced dividend paying companies. (analysis)

Lowe’s (NYSE:LOW), together with its subsidiaries, operates as a home improvement retailer. In June, the company raised annual distributions by 14.30% to 64 cents per share. The ten year dividend growth rate has been 29.60% per year. This dividend aristocrat has raised distributions for 50 years in a row. The stock is valued at 19 times earnings, yields 2.30% and has an adequately covered distribution. I would consider addin to my position in the stock on dips below $25.60. (analysis)

Sigma-Aldrich (NASDAQ:SIAL), a life science and high technology company, develops, manufactures, purchases, and distributes various chemicals, biochemicals, and equipment worldwide. In February, the company raised annual distributions by 11.10% to 80 cents per share. The ten year dividend growth rate has been 15.90% per year. This dividend aristocrat has raised distributions for 36 years in a row. The stock is valued at 19.60 times earnings, yields 1.10% and has an adequately covered distribution. While the company has maintained a double digit dividend growth rate, I find the current yield to be low. As a result I would pass on the stock for now, but would continue monitoring if stock trades at lower valuations.

Dover Corporation (NYSE:DOV) manufactures and sells a range of specialized products and components, and provides related services and consumables. In August, the company raised annual distributions by 11.10% to $1.40 per share. The ten year dividend growth rate has been 8.50% per year. This dividend aristocrat has raised distributions for 57 years in a row. The stock is attractively valued at 12.80 times earnings, yields 2.40% and has an adequately covered distribution. I would add the company to my list for further analysis.

Air Products and Chemicals (NYSE:APD) provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. In March, the company raised annual distributions by 10.30% to $2.56 per share. The ten year dividend growth rate has been 11.10% per year. This dividend aristocrat has raised distributions for 30 years in a row. The stock is attractively valued at 13.30 times earnings, yields 3.10% and has an adequately covered distribution. I like the fact that APD had managed to consistently boost dividends at a double-digit rate, and I also find the stock to be a bargain at this time. I recently added to my position in the stock. (analysis)

Genuine Parts (NYSE:GPC) distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. In February, the company raised annual distributions by 10% to $1.98 per share. The ten year dividend growth rate has been 4.80% per year. This dividend aristocrat has raised distributions for 56 years in a row. The stock is attractively valued at 16.30 times earnings, yields 3.20% and has an adequately covered distribution. However, the dividend growth rate over the past decade makes me want to wait for higher yields before I consider initiating a position in the stock. (analysis)

Full Disclosure: Long WAG, XOM, GWW,FDO, LOW, APD


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