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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (45119)	11/5/2008 3:11:33 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 71409

10 Companies Building Future Yields; Raising Dividends by: Dividends4Life October 31, 2008 \| about stocks: AFL / ARG / AROW / BRO / EV / MCHP / PRSP / SHEN / TAMB / THG Dividends4Life Add to Your WatchlistAbout this author: Bio & more articles Visit Dividends4Life.com Become a Contributor Submit an Article Font Size: PrintEmail When I first started dividend investing, I erroneously focused on current dividend yield. I was fortunate enough to accidentally buy some good dividend stocks and hold them long enough to figure out the "secret" of dividend investing. Dividend investing is about future yield, not current yield. It is not necessarily starting with a high-yield investment, but ending up with a high-yield investment. This usually occurs by buying investments with a moderate yield, a history of growing dividends and letting time do its job. Here is a list of companies that are building future yields for their shareholders by raising their cash dividends: Aflac (AFL) Raises Quarterly Dividend 16.7% to $0.28/Share (2.48%) Brown & Brown (BRO) Boosts Quarterly Dividend 7.1% to $0.075/Share (1.71%) Eaton Vance (EV) Increases Quarterly Dividend 3% to $0.155/Share (3.49%) Microchip Technology (MCHP) Increases Dividend 9.4% to $0.30/Share (5.72%) Airgas (ARG) Raises Quarterly Dividend 33% to $0.16/Share (2.11%) Hanover Insurance Group (THG) Boosts Dividend by 12.5% to $0.45/Share (1.37%) Shenandoah Telecommunications (SHEN) Increases Dividend 11% to $0.30/Share (1.42%) Prosperity Bancshares (PRSP) Increases Quarterly Dividend by 10% to $0.1375/Share (1.79%) Tamalpais Bancorp (TAMB) Increases Quarterly Dividend 9% to $0.06/Share (2.34%) Arrow Financial (AROW) Increases Quarterly Dividend by 4% to $0.25/Share (4.21%) After running these companies through my D4L-PreScreen.xls model, EV with a NPV of MMA Differential of $87,621 justifies an more complete evaluation. MCHP has a large NPV of MMA Differential, which usually begs the question can it sustain its dividend. AFL is a stock that I own and am currently accumulating. BRO ($2,027) had a positive NPV of MMA Differential, but fell short of the $3,000 I look for from a company that is a Dividend Aristocrat. None of the others achieved the necessary NPV of MMA Differential to justify a full evaluation. [Johnny: Agree with the analysis of the high payout ratio on MCHP perhaps limiting their ability to increase dividends in the short term. Management has been fairly consistent at slowly growing the company's revenues organically and returning shareholder value. They don't create earth shattering technology, but they find unique and cost effective chips for consumer products designers.]