40 Blue Chips Increasing Dividends in Q3 2012

by Kyle Woodley | October 1, 2012 8:50 am

IncreasingDividends 40 Blue Chips Increasing Dividends in Q3 2012[1]If you kept your eyes on the headlines this past quarter, you wouldn’t be blamed for thinking 2012 might just be the year of the dividend. For instance:

That last point highlights one of the more interesting aspects about the stocks featured in the past quarter’s worth of Companies Increasing Dividends[5] lists. Yes, they included traditional dividend heavyweights, like telecoms and tobacco. But they also featured technology stocks — a noticeably growing area of dividend improvement[6] — as well as a number of financials from our friendly neighbor up north[7].

Also of note: Some of the top-paying components of the Dow Jones Industrial Average — the high-water market for blue-chips — hiked their payouts, too.

So, if you’re looking for large, more dependable companies that are increasingly using their cash to reward shareholders, this list of 40 blue-chip dividend stocks is a good place to start. In fact, several of the stocks listed here have yet to go ex-dividend, giving you time to get in before their first newly fattened payout.

Here’s a look at these 40 companies, including the new payout, the percentage increase, yield based on the end-of-quarter stock price, and payment and record dates:

Abercrombie & Fitch (ANF)
New Payout % increase Yield as of 10/1 Payment Date Record date
$0.175/share 3% 2.06% Sept. 11 Aug. 27
Altera Corp. (ALTR)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.10/share 25% 1.18% Sept. 4 Aug. 10
Altria (MO)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.44/share 7.3% 5.27% Oct. 10 Sept. 14

Altria (NYSE:MO[8]) was one of two tobacco companies bolstering their payouts this quarter; its spun-off international unit, Philip Morris (NYSE:PM[9]), was the other. Altria has been paying out dividends for 25 years now and has been steadily increasing them the whole time. Of course, its 5%-plus dividend is hardly a sign that the growth is over, and MO shares have just barely underperformed the market this year, posting respectable gains of more than 12% year-to-date.

Bank of Montreal (BMO)
new payout % increase Yield as of 10/1 payment date record date
$0.72/share 2.7% 4.94% Nov. 28 Nov. 1

Bank of Montreal (NYSE:BMO[10]) was one of several Canadian financials that jacked up their dividends[11] in the course of a week earlier this quarter. Bank of Nova Scotia (NYSE:BNS[12]), Royal Bank of Canada (NYSE:RY[13]) and Toronto-Dominion Bank (NYSE:TD[14]) all joined in, too, though BMO is the highest-yielding of the quartet at nearly 5%.

Bank of Nova Scotia (BNS)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.58/share 6% 4.23% Oct. 29 Oct. 2
Baxter International (BAX)
New payout % Increase Yield as of 10/1 Payment date Record date
$0.45/share 34% 2.99% Oct. 1 Sept. 7
BCE (BCE)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$2.27/share 4.6% 5.29% Oct. 15 Sept. 14
CBS (CBS)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.12/share 20% 1.23% Oct. 1 Sept. 10
Cincinnati Financial (CINF)
new payout % Increase Yield as of 10/1 Payment Date Record Date
$0.4075/share 12.5% 4.3% Oct. 15 Sept. 9

Cincinnati Financial (NASDAQ:CINF[15]) is one of our Dependable Dividend Stocks[16] – companies that have increased dividend payouts for a minimum of 25 consecutive years. Of course, CINF is far past the bare minimum, with more than 50 straight years of writing bigger checks — and its yield is a healthy 4.3%.

Cisco Systems (CSCO)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.14/share 75% 2.93% Oct. 24 Oct. 4

Cisco Systems (NASDAQ:CSCO[17]) has had a relatively weak 2012 but got back into the black for the year-to-date after announcing Street-beating fourth-quarter earnings[18] — as well as putting a monster charge into its dividend the same day. Cisco, which started paying out a dividend only in early 2011, now yields almost 3%.

ConAgra (CAG)
new payout % Increase Yield as of 10/1 Payment Date Record Date
$0.25/share 4% 3.62% Dec. 4 Oct. 31
Covidien (COV)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.26/share 16% 1.75% Nov. 5 Oct. 11
Cummins (CMI)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.50/share 25% 2.17% Sept. 1 Aug. 22
Expedia (EXPE)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.13/share 44.4% 0.9% Sept. 18 Aug. 28

Travel site Expedia‘s (NASDAQ:EXPE[19]) big-time dividend increase certainly was welcome, though the stock still yields less than 1%. And the new payout is a mere footnote compared to the stock’s performance in 2012. Expedia is the third best-performing stock in the S&P 500[20], having nearly doubled in just nine months!

Fastenal (FAST)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.19/share 11.8% 1.77% Aug. 24 July 27
Fifth Third Bancorp (FITB)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.10/share 25% 2.58% Oct. 18 Sept. 28
Harris (HRS)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.37/share 12% 2.89% Sept. 19 Sept. 7

Like Expedia, Harris (NYSE:HRS[21]) — a Florida-based communications and IT firm — has had a blowout 2012, netting shareholders 40%-plus gains through the first three quarters. And like Expedia, HRS decided to share a little more wealth with investors with a 12% payout hike earlier this year. Unlike Expedia, Harris’ nearly 3% yield isn’t something to sneeze at.

J.M. Smucker (SJM)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.52/share 8% 2.41% Sept. 4 Aug. 10
Kinder Morgan (KMI)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.35/share 9% 3.94% Aug. 15 July 31
Lockheed Martin (LMT)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$1.10/share 15% 4.93% Dec. 28 Dec. 3
Marathon Petroleum (MPC)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.35/share 40% 2.56% Sept. 10 Aug. 16

How is Marathon Petroleum (NYSE:MPC[22]) doing after being spun-off from Marathon Oil (NYSE:MRO[23]) more than a year ago? Pretty darn good, thanks for asking! MPC shares have returned 46% since July 2011, including a 64% run year-to-date. And most recently, it boosted its quarterly dividend by a whopping 40% to yield roughly 2.5%.

McDonald’s (MCD)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.77/share 10% 3.36% Dec. 17 Dec. 3

How is McDonald’s (NYSE:MCD[24]) doing? Well … not as well as MPC. McDonald’s dividend increase is probably one of the year’s better pieces of news for MCD investors, who have watched their shares lose more than 8% this year while the rest of the market thrives.

Microsoft (MSFT)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.23/share 15% 3.09% Dec. 13 Nov. 15

While Microsoft (NASDAQ:MSFT[25]) is up 15% this year — good enough to rank fourth in our Top 10 Stocks for 2012[26] contest — there’s serious concerns about the company’s ability to rake in future gains amid a seeming decline in innovation over the years[27]. Still, a dividend north of 3% should prove enough to entice at least a few more income investors.

Monsanto (MON)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.375/share 25% 1.65% Oct. 26 Oct. 5
Mosaic (MOS)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.25/share 400% 1.74% Aug. 16 Aug. 2

The ag sector was another thriving area for dividend improvements this quarter. Seeds and chemicals firm Monsanto (NYSE:MON[28]), as well as Mosaic (NYSE:MOS[29]) and Potash (NYSE:POT[30]) — which produce phosphates, potash and other agricultural products — all hiked their payouts. But Mosaic was the belle of the dividend ball, injecting a 400% booster shot to its quarterly check.

Motorola Solutions (MSI)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.26/share 18% 2.06% Oct. 15 Sept. 14
Murphy Oil (MUR)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.3215/share 14% 2.33% Sept. 4 Aug. 17
Norfolk Southern (NSC)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.50/share 6.4% 3.14% Sept. 15 Aug. 13

It has been a pretty poor year for railroad operator Norfolk Southern (NYSE:NSC[31]), with shares down more than 12% year-to-date. Things were looking good during the summer, as NSC staged a recovery and announced a slight increase in its dividend, but lowered guidance announced in September[32] took NSC shares off the tracks.

ONEOK (OKE)
New Payout % Increase Yield as of 10/1 Payment Date Record Date
$0.33/share 8.2% 2.73% Aug. 15 Aug. 6
Philip Morris International (PM)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.85/share 10.4% 3.78% Oct. 11 Sept. 27

Philip Morris (NYSE:PM[9]) continued to catch up with its higher-yielding tobacco brethren this quarter. After its latest increase, PM now is paying out 85 cents a share — an 80%-plus improvement upon its original post-spin-off dividend, resulting in a yield of almost 3.8%.

Potash (POT)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.21/share 50% 1.93% Nov. 5 Oct. 15
Royal Bank of Canada (RY)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.60/share 5% 4.21% Nov. 23 Oct. 25
Royal Caribbean (RCL)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.12/share 20% 1.59% Oct. 9 Sept. 25
Seagate Technology (STX)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.32/share 28% 4.13% Aug. 29 Aug. 14

Seagate Technology (NASDAQ:STX[33]), a manufacturer of hard-disk drives and other memory products, also ranks among the best-performing stocks through 2012[34]. But in addition to roughly 80% gains in 2012, STX investors also were rewarded with a plumper dividend as of August.

Stanley Black & Decker (SWK)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.49/share 20% 2.57% Sept. 18 Sept. 7
Toronto-Dominion Bank (TD)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.77/share 7% 3.72% Oct. 31 Oct. 3
Texas Instruments (TXN)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.21/share 24% 3.05% Nov. 19 Oct. 31
Williams Cos. (WMB)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.3125/share 4% 3.57% Sept. 10 Aug. 24
Verizon (VZ)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.515/share 3% 4.52% Nov. 1 Oct. 10

Telecom giant Verizon (NYSE:VZ[35]) didn’t do much to its dividend, ticking it up a mere 3% in the third quarter, but investors aren’t complaining. For one, Verizon is boasting market-matching 14% gains year-to-date — a nice move for a supposedly no-growth telecom stock. But more important, at 4.5%, Verizon continues to be the second-best-yielding Dow Dividend stock[36], outdone only by rival AT&T (NYSE:T[37])

Yum! Brands (YUM)
New Payout % Increase Yield as of 10/1 Payment date Record date
$0.335/share 18% 2.02% Nov. 2 Oct. 12

Kyle Woodley[38] is the assistant editor of InvestorPlace.com[39]. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @IPKyleWoodley[40].

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/companies-increasing-dividends/
  2. Investopedia: http://www.investopedia.com/stock-analysis/2012/sp-500-expected-to-pay-record-dividends-in-2012-hcc-klac-usmo0215.aspx?partner=YahooSA#axzz27y0ZOfVi
  3. Daily Crux: http://www.thedailycrux.com/Post/35377/Record-numbers-of-dividend-stocks-are-yielding-more-than-bonds
  4. Bloomberg Businessweek: http://www.businessweek.com/news/2012-09-09/tech-stocks-with-record-dividends-send-bear-signal-for-investors
  5. Companies Increasing Dividends: http://investorplace.com/hot-topics/companies-increasing-dividends/
  6. noticeably growing area of dividend improvement: http://investorplace.com/2012/08/techs-the-next-frontier-in-dividend-growth/
  7. a number of financials from our friendly neighbor up north: http://investorplace.com/2012/08/5-sleepy-canadian-banks-providing-super-yields-ry-td-bns-bmo-cm/
  8. MO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MO
  9. PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PM
  10. BMO: http://studio-5.financialcontent.com/investplace/quote?Symbol=BMO
  11. Canadian financials that jacked up their dividends: http://investorplace.com/2012/08/7-companies-increasing-dividends-aug-27-31-aol-bns-ry-td/
  12. BNS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BNS
  13. RY: http://studio-5.financialcontent.com/investplace/quote?Symbol=RY
  14. TD: http://studio-5.financialcontent.com/investplace/quote?Symbol=TD
  15. CINF: http://studio-5.financialcontent.com/investplace/quote?Symbol=CINF
  16. Dependable Dividend Stocks: http://investorplace.com/dividend-paying-stocks/
  17. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  18. announcing Street-beating fourth-quarter earnings: http://investorplace.com/2012/08/cisco-beats-q4-estimates-raises-dividend/
  19. EXPE: http://studio-5.financialcontent.com/investplace/quote?Symbol=EXPE
  20. third best-performing stock in the S&P 500: http://investorplace.com/2012/09/10-best-sp-stocks-so-far-in-2012/9/
  21. HRS: http://studio-5.financialcontent.com/investplace/quote?Symbol=HRS
  22. MPC: http://studio-5.financialcontent.com/investplace/quote?Symbol=MPC
  23. MRO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MRO
  24. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  25. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  26. Top 10 Stocks for 2012: http://investorplace.com/best-stocks-for-2012/
  27. seeming decline in innovation over the years: http://investorplace.com/2012/09/microsoft-is-really-just-a-boring-utility/
  28. MON: http://studio-5.financialcontent.com/investplace/quote?Symbol=MON
  29. MOS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MOS
  30. POT: http://studio-5.financialcontent.com/investplace/quote?Symbol=POT
  31. NSC: http://studio-5.financialcontent.com/investplace/quote?Symbol=NSC
  32. lowered guidance announced in September: http://www.benzinga.com/news/earnings/12/09/2927796/norfolk-southern-plunges-after-lowering-q3-guidance
  33. STX: http://studio-5.financialcontent.com/investplace/quote?Symbol=STX
  34. also ranks among the best-performing stocks through 2012: http://investorplace.com/2012/09/10-best-sp-stocks-so-far-in-2012/8/
  35. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  36. second-best-yielding Dow Dividend stock: http://investorplace.com/2012/09/top-10-dow-dividend-stocks-for-september/10/
  37. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  38. Kyle Woodley: http://investorplace.com/author/kyle-woodley/
  39. InvestorPlace.com: http://investorplace.com/
  40. @IPKyleWoodley: https://twitter.com/#%21/kylewoodley

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