Dividend Aristocrats Week in Review for August 16, 2014: Three Companies with 50+ Years of Dividend Increases Announce Regular Dividends

Two Dividend Aristocrats and three High Yield Dividend Aristocrats had dividend announcements this week, including one that announced its 51st year of dividend growth.

Two Long Time Dividend Aristocrats Announce Regular Quarterly Dividends

3M has increased dividends since 1959.  The Minnesota-based company manufactures thousands of products, including Post-Its, which are used in a variety of applications around the world.  Some applications are more creative than others.... Photo courtesy H. Michael Arrighi/flickr.com.

3M has increased dividends since 1959. The Minnesota-based company manufactures thousands of products, including Post-Its, which are used in a variety of applications around the world. Some applications are more creative than others….
Photo courtesy H. Michael Arrighi/flickr.com.

Among the 54 Dividend Aristocrats, 3M (MMM, Company Summary), maker of thousands of products including Post-Its and Scotch brand tape announced its latest quarterly dividend of 85.5 cents per share, payable on September 12th to shareholders of record on August 22nd.  3M has paid dividends to investors for 98 years and increased dividends for the last 55 years.  The company increased its dividend by 35% in the first quarter of 2014 and I expect that 3M will announce its 56th consecutive year of dividend growth at the end of 2014 and pay the new dividend at the beginning of 2015.  At current prices, 3M stock yields 2.41%.

Insurer Cincinnati Financial Corporation (CINF, Company Summary) will pay a quarterly dividend of 44 cents per share on October 15th to shareholders of record on September 17th.  Cincinnati Financial is another long term Dividend Aristocrat, having growth its dividends for 54 years.  I expect Cincinnati Financial to announce its 55th year of dividend growth at the end of 2014 and pay the new dividend at the beginning of 2015.  Cincinnati Financial stock now yields 3.68%.

A High Yield Dividend Aristocrat Announces Its 51st Year of Dividend Growth

Ohio – based Nordson Corporation (NDSN) announced its 51st year of increasing dividends.  The manufacturer of adhesives, sealants and other materials will increase its quarterly dividend by 22.2%, from 18 cents to 22 cents per share.  This increase represents the company’s 51st year of dividend growth, and will be paid on September 9th to shareholders of record on August 26th.  Nordson creates, manufactures and markets its products in over 30 countries to customers in a variety of fields, including medical, appliances, transportation, and construction.  Nordson stock currently yields 1.13%.

Bismark, ND – based MDU Resources Group (MDU), which provides products and services to the energy and transportation infrastructure industry, including regulated utilities, pipeline, exploration and production companies, will pay a 17.75 cent per share quarterly dividend on October 1st to shareholders of record on September 11th.  MDU has paid quarterly dividends since 1937.  In November 2013, MDU increased its dividend for the 23rd straight year, raising the quarterly dividend by 2.9%, from 17.25 cents to the current rate of 17.75 cents per share.  Based on the company’s history, I expect that MDU will announce its 24th straight year of dividend growth in November 2014 and pay the increased dividend on January 1, 2015.  With an annualized dividend of 71 cents per share, MDU stock currently yields 2.30%.

This Insurance Company is on Track to Become a Dividend Aristocrat in 2018

ACE Limited (ACE), parent company of insurer ACE Group, announced its latest quarterly dividend equivalent to 65 cents per share on October 21st to shareholders of record on September 30th.  As a company based in Switzerland, the dividend payment is subject to a required filing with Swiss regulatory authorities.  ACE Limited has increased its dividend three times in the last two years and will pay the current rate for two more quarters before considering another dividend increase in February 2015.  The company’s annualized dividend is $2.60, resulting in a current yield of 2.51%.  ACE Limited has increased its annual dividends since coming public in 1993.  Since ACE is a member of the S&P 500, ACE is eligible to become an S&P Dividend Aristocrat and – if the company keeps up the annual dividend increases – will graduate to the S&P Dividend Aristocrats in 2018.

There are over 50 S&P 500 companies that have increased dividends for more than a quarter century.  See the full list of S&P Dividend Aristocrats.

Share this post:

Recent Posts

Comments are closed.