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Author: THagenah Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8722  
Subject: Companies that grow their dividend Date: 4/14/2004 5:38 PM
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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 looking for some ideas:
Abbott Labs, Alltel, Altria, AmSouth Bancorp, Archer Daniels Midland, Automatic Data Processing, Avery Dennison, Bank of America, Century Tel, Chubb, Clorox, Coca Cola, Comerica, ConAgra, Consolodated Edison, CR Bard, Dickinson Becton Dover, Eli Lilly, Emerson Electric, Family Dollar Stores, First Tenn Nat'l, Gannett, GE, Jefferson Pilot, JNJ, Johnson Controls, KeyCorp, Kimberly Clark, Leggett and Platt, Lowes, Marsh &McLennan, Masco, May Dept Stores, McDonalds, McGraw Hill, MRK, Nucor, Pepsi, PPG Industries, PG, Regions Financial, Rohm & Hass, RR Donelley, Sigma Aldrich, South Trust, Stanley Works, Supervalu, Target, 3M, US Bancorp, VF Corp, Walgreen, Walmart and WW Grainger.
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