18 New Names for the 2013 Dividend Achievers List

by Dividend Growth Investor | May 8, 2013 10:30 am

18 New Names for the 2013 Dividend Achievers List

The dividend achievers index includes includes companies which have managed to boost distributions for at least ten consecutive years. Every year, the index is updated to account for companies which have just achieved a ten year streak of dividend growth, and to delete the companies which have either cut dividends or failed to increase them for over one year.

The Broad Dividend Achievers index includes 216 companies which have boosted distributions for more than ten consecutive years[1] in a row. Since 1996, the Dividend Achievers index has managed to outperform the S&P 500 total returns.

DAA 18 New Names for the 2013 Dividend Achievers List

Source: Indxis[2]

There is an exchange traded fund that tracks the Broad Dividend Achievers index (PFM). Since 2005, the annual distributions and net asset values at year end are as follows:

DIVACH 18 New Names for the 2013 Dividend Achievers List

The following companies have been added in 2013, arranged by sector:

Utilities

AGL Resources (NYSE:GAS[3]), an energy services holding company, distributes natural gas to residential, commercial, industrial, and governmental customers in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland. The company trades at 19 times earnings and yields 4.30%. Over the past decade, the company has managed to raise distributions by 5.50% per year.

ONEOK, Inc. (NYSE:OKE[4]) operates as a diversified energy company in the United States. The company trades at 27.60 times earnings and yields 3.10%. Over the past decade, the company has managed to raise distributions by 15.10% per year. Check my analysis of Oneok[5].

York Water (NASDAQ:YORW[6]) engages in impounding, purifying, and distributing drinking water in Pennsylvania. York Water, which is the oldest investor owned utility in the nation, has paid dividends for 197 consecutive years beginning in 1816. Dividends can be reinvested automatically at a 5% discount, in the company’s DRIP plan. The company trades at 25.90 times earnings and yields 3%. Over the past decade, the company has managed to raise distributions by 4.40% per year.

Avista (NYSE:AVA[7]), an energy company, engages in the generation, transmission, and distribution of energy; and other energy-related businesses primarily in the United States and Canada. The company trades at 21.90 times earnings and yields 4.40%. Over the past decade, the company has managed to raise distributions by 9.20% per year.

Consumer Discretionary

Cracker Barrel (NASDAQ:CBRL[8]) develops and operates the Cracker Barrel Old Country Store restaurant and retail concept in the United States. The company trades at 17.70 times earnings and yields 2.50%. Over the past decade, the company has managed to raise distributions by 52.90% per year.

Andersons (NASDAQ:ANDE[9]) engages in the grain, ethanol, plant nutrient, rail car leasing, turf and cob products, and consumer retailing businesses. The company trades at 13 times earnings and yields 1.20%. Over the past decade, the company has managed to raise distributions by 16.50% per year.

Tiffany (NYSE:TIF[10]), through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. The company trades at 23.20 times earnings and yields 1.80%. Over the past decade, the company has managed to raise distributions by 22.50% per year.

Materials

International Flavors & Fragrances (NYSE:IFF[11]), together with its subsidiaries, creates, manufactures, and supplies flavor and fragrance products worldwide. The company used to be on the dividend aristocrats list, until cutting distributions in the year 2000. The company trades at 25.20 times earnings and yields 1.80%. Over the past decade, the company has managed to raise distributions by 7.80% per year.

Alliance Resource Partners (NASDAQ:ARLP[12]) engages in the production and marketing of coal primarily to utilities and industrial users in the United States. The company trades at 11.30 times earnings and yields 6.50%. Over the past decade, the company has managed to raise distributions by 15.30% per year.

Industrials

Lindsay (NYSE:LNN[13]) designs, manufactures, and sells irrigation systems that are primarily used in the agricultural industry to increase or stabilize crop production while conserving water, energy, and labor in the United States and internationally. The company trades at 16.10 times earnings and yields 0.60%. Over the past decade, the company has managed to raise distributions by 11.30% per year.

Lincoln Electric Holdings (NASDAQ:LECO[14]), through its subsidiaries, engages in the design, manufacture, and sale of welding, cutting, and brazing products worldwide. The company trades at 17.30 times earnings and yields 1.50%. Over the past decade, the company has managed to raise distributions by 8.50% per year.

Lockheed Martin (NYSE:LMT[15]), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products for defense, civil, and commercial applications in the United States and internationally. The company trades at 11.80 times earnings and yields 4.60%. Over the past decade, the company has managed to raise distributions by 24.70% per year. Check my analysis of Lockheed Martin[16].

Technology

Maxim Integrated Products (NASDAQ:MXIM[17]) engages in designing, developing, manufacturing, and marketing various linear and mixed-signal integrated circuits worldwide. The company trades at 25.60 times earnings and yields 3.10%. Over the past decade, the company has managed to raise distributions by 46.60%% per year.

Financial

National Health Investors (NYSE:NHI[18]), a real estate investment trust (REIT), invests in health care properties, primarily in the long-term care industry in the United States. The company yields 4.40%. Over the past decade, the company has managed to raise distributions by 5.70% per year.

Westwood Holdings (NYSE:WHG[19]) manages investment assets and provides services for its clients. The company trades at 27.80 times earnings and yields 3.80%. Over the past decade, the company has managed to raise distributions by 54.10% per year.

Energy

Occidental Petroleum (NYSE:OXY[20]) engages in the exploration and production of oil and gas properties in the United States and internationally. The company trades at 16.70 times earnings and yields 2.90%. Over the past decade, the company has managed to raise distributions by 15.30% per year.

Sunoco Logistics (NYSE:SXL[21]) engages in the transport, terminalling, and storage of crude oil and refined products in the United States. The MLP yields 3.60%. Over the past decade, the company has managed to raise distributions by 16.90% per year.

Business Services

Rollins (NASDAQ:ROL[22]), through its subsidiaries, provides pest and termite control services to residential and commercial customers worldwide. The company trades at 32.10 times earnings and yields 1.50%. Over the past decade, the company has managed to raise distributions by 23.30% per year.

There were several eye-popping ten year dividend growth rates in the new dividend achievers list. This is mostly because these companies are in the first stage of dividend growth, which is characterized by quick dividend acceleration from zero dividend levels. The rest of the companies include turnarounds which have managed to rebuild their long dividend histories, after cutting or freezing distributions. The most important catalyst behind future distributions growth however is whether companies have what it takes to grow earnings over time.

Another odd part on the dividend achievers index is that Lincoln Electric Holdings and York Water had raised dividends for more than 15 consecutive years. It looks as if the dividend achievers index is not as complete as the list of dividend contenders and champions, which has 304 individual companies.

Endnotes:
  1. ten consecutive years: http://www.dividendgrowthinvestor.com/2010/03/ten-year-dividend-growth-requirement.html
  2. Indxis: http://www.indxis.com/USBroad.html
  3. GAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GAS
  4. OKE: http://studio-5.financialcontent.com/investplace/quote?Symbol=OKE
  5. analysis of Oneok: http://www.dividendgrowthinvestor.com/2010/12/oneok-inc-oke-dividend-stock-analysis.html
  6. YORW: http://studio-5.financialcontent.com/investplace/quote?Symbol=YORW
  7. AVA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AVA
  8. CBRL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CBRL
  9. ANDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANDE
  10. TIF: http://studio-5.financialcontent.com/investplace/quote?Symbol=TIF
  11. IFF: http://studio-5.financialcontent.com/investplace/quote?Symbol=IFF
  12. ARLP: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARLP
  13. LNN: http://studio-5.financialcontent.com/investplace/quote?Symbol=LNN
  14. LECO: http://studio-5.financialcontent.com/investplace/quote?Symbol=LECO
  15. LMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=LMT
  16. analysis of Lockheed Martin: http://www.dividendgrowthinvestor.com/2010/10/lockheed-martin-corporation-lmt.html
  17. MXIM: http://studio-5.financialcontent.com/investplace/quote?Symbol=MXIM
  18. NHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=NHI
  19. WHG: http://studio-5.financialcontent.com/investplace/quote?Symbol=WHG
  20. OXY: http://studio-5.financialcontent.com/investplace/quote?Symbol=OXY
  21. SXL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SXL
  22. ROL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ROL

Source URL: http://investorplace.com/2013/05/18-new-names-for-the-2013-dividend-achievers-list-gas-lmt-rol-oke-yorw/
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