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Investment Analysis Clubs / Dividend Growth Investing


Subject:  Companies that grow their dividend Date:  4/14/2004  5:38 PM
Author:  THagenah Number:  37 of 9216

Nice board and a most welcome addition. As a retiree I have structured my portfolio so that almost all my holdings are in dividend producing stocks which grow their dividend each year, year in, year out. I have the following in my portfolio which fill that bill: C, FITB, FNM, GE, JNJ, MRK, MO, PFE, PG, XOM. I expect MRK to be a laggard in the dividend growth department but I'm willing to wait for a while. While I don't own any utilities I follow the likes of D, DUK, SO and FPL. I think any 2 of those would be fine. I also have some fairly large positions in Intel and Microsoft which were not purchased with dividends in mind but, at least, in Microsoft's case, it could become a solid dividend producer. I'm hoping that MSFT will declare a special dividend once they are out of the woods in their litigation and EU issues. Barron's has speculated twice in the last 9 months that MSFT could easily declare a $1.00 per share dividend and then embark upon a regular quarterly dividend. $1.00 special per share would cost the company 12 billion dollars, which is not that much given their cash hoard of 60 billion. A 1% regular dividend yield would be $.25 a year. A 2% regular dividend of $.50 at today's price of $ 25 a share would cost them about $ 6 billion dollars a year, not much for MSFT with its enormous cash generation ability. Last December Barron's had a piece on "Dividend Aristocrats" (companies that have raised their dividends annually for 25 years or more. The list is long but I'll add it here for those who are lookin