The Dynamic Dividend

Stocks That Reached a Decade of Dividend Growth in 2011

A little more than 200 publicly-traded companies (see all of them here) entered the year with dividend growth streaks that were at least a decade long. And while 11 of those companies saw their streaks end in 2011, many more up-and-coming dividend growth stocks reached the ten year threshold this year.

Below are the 21 companies that reached a decade of uninterrupted dividend growth in 2011. Each has raised its dividend output every year since 2002.

Alterra Capital Holdings (ALTE) initiated its quarterly payout in 2001 and has improved its dividend each year since. The provider of specialty insurance and reinsurance products most recently gave its shareholders a 17% raise in August, and currently yields 2.46%.

Auburn National Bancorporation (AUBN) increased its dividend by 2.6% in August, marking the tenth consecutive year — and the 16th time since 1996 — the bank holding company has given its shareholders a raise. Shares of AUBN currently yield 4.14%.

Cass Information Systems (CASS) locked in its tenth consecutive year of dividend growth by announcing a 10% stock dividend and a 6% increase to its cash payout in October, effectively giving its shareholders a 17% raise. The provider of payment and information processing services currently yields 1.86%.

Canadian Natural Resources (CNQ) initiated its dividend in 2001 and has raised it every year since. In fact, the company has given its shareholders a double-digit raise in nine of those ten years, most recently boosting its payout by 20% back in March. Canadian Natural’s quarterly dividend of C$0.09 per share (and the current CAD/USD exchange rate) give shares of CNQ a 0.95% yield.

Delphi Financial Group (DFG) initiated its dividend in February 2001 and has raised it every year since, most recently giving its shareholders a 9% raise in May. The employee benefits company has improved its quarterly rate by 286% during the streak, and currently yields 1.09%. (Note: Tokio Marine Holdings announced plans to acquire Delphi on Wednesday in a transaction that is expected to close in the second quarter of 2012.)

Harris Corporation (HRS) has not only increased its dividend annually since 2002, but given its shareholders a double-digit raise each of those years. The communications and IT company most recently upped its payout by 12% in August, bringing total dividend growth during its streak to a staggering 1,020%. Shares of HRS currently yield 3.06%.

Landmark Bancorp (LARK) delivers its annual raise to shareholders in a non-traditional way: By holding its dividend rate flat despite handing out additional shares. The bank holding company announced and delivered a 5% stock dividend for the 10th consecutive year in at the end of 2010 and maintained its quarterly payout of $0.19 per share throughout 2011 — effectively giving shareholders a 5% raise — and has already set the table for 2012 by handing out another 5% stock dividend this year. Shares of LARK currently yield 4.22%.

Landauer (LDR) ended a four year dividend growth drought by giving its shareholders a raise at the end of 2002, and has managed to increase its output every year since. The radiation science and services company last raised its dividend in November 2010, so — unlike many of the companies on this list — it will definitely need to bump its payout this year to extend its streak to an 11th year. Shares of LDR currently yield 4.38%.

Magellan Midstream Partners (MMP) actually has a pair of impressive streaks going: The partnership has improved its distribution output for ten consecutive years, but it also closes 2011 having increased its payout in seven consecutive quarters. The owner and operator of a vast network of petroleum pipelines has raised its distribution 38 times since coming public just ten years ago, most recently upping its payout by 2% in October. MMP currently yields 4.83%.

Monsanto (MON) increased its payout by 7% in August, extending its perfect dividend growth record. The provider of agricultural products began returning cash to its shareholders in 2001 and has improved its dividend output each year since, more than doubling its payout along the way. Shares of MON yield 1.70%.

Nike (NKE) reached a decade of payout growth with a 24% dividend hike — its largest in four years — in November. The athletic apparel giant has been returning cash to its shareholders since 1983, but only recently began growing its payout aggressively, improving its dividend by 500% over the last decade. Shares of NKE currently yield 1.52%.

Inergy (NRGY) has improved its distribution output every year since coming public in 2001. The partnership once had a streak of 35 consecutive quarters with a distribution hike, but hasn’t upped its payout since July 2010. It will need to give unitholders at least a slight raise in 2012 to keep its streak alive next year. NRGY currently yields 11.56%.

NuStar Energy (NS) has given its unitholders 12 raises since initiating its distribution in 2001, most recently upping its payout by 2% in July. The energy transportation partnership has increased its payout by 83% during its decade of distribution growth, and currently yields 7.71%.

Norfolk Southern (NSC) completed its first decade of dividend growth in style, giving its shareholders a pair of raises in 2011. The railroad operator increased its payout by 11% in January, only to raise it by another 7.5% in July. Norfolk has raised its dividend by a total of 617% during its streak, and currently yields 2.38%.

Nu Skin Enterprises (NUS) has improved its dividend by a total of 220% since it began retuning cash to its shareholders in 2011 — and the growth is accelerating. The anti-aging company had increased its payout every four quarters like clockwork before giving its shareholders an ahead-of-schedule 19% raise in July. With two dividend hikes, the company grew its dividend total by 18% in 2011, its biggest year-over-year improvement since a 20% advance in 2002. Shares of NUS currently yield 1.36%.

Royal Gold (RGLD) was one of many gold producers or royalty companies to raise its payout this year, but it was the only one to extend a meaningful dividend growth streak. The precious metals royalty company has grown its payout by a staggering 1,100% since it began returning cash to its shareholders in 2000, most recently upping its dividend by 36% in November. Shares of RGLD currently yield 0.64%.

Senior Housing Properties Trust (SNH) initiated its dividend in 2000 and increased its for the first time in 2002. The real estate investment trust — which invests in properties for seniors, including assisted living communities, nursing homes, medical offices, rehab hospitals, and wellness centers — has given its shareholders a total of eight raises during its dividend growth streak, most recently upping its payout by 2.7% in October. Shares of SNH currently yield 6.78%.

The Southern Company (SO) reached a decade of dividend growth by giving its shareholders a 4% raise in April. The utility holding company has been one of the most consistent (if unexciting) dividend growers on this list over the last decade, improving its payout total between 1.19% and 4.23% each year. Shares of SO currently yield 4.13%.

Valmont Industries (VMI) extended its dividend growth streak to a full decade with a 9% dividend hike in April. The producer of fabricated metal products has improved its payout by a total of 177% during the streak, and currently yields 0.78%.

W.R. Berkeley Corporation (WRB) has more than tripled its payout since its dividend growth streak began in 2002. The insurance holding company gave its shareholders a 14% raise in May, and currently yields 0.94%.

Watsco (WSO) has had the most remarkable decade of dividend growth on this list. The air conditioning and heating solutions company has increased its payout 14 times (including nine raises of at least 20%) since 2002, growing its dividend by an incredible 2,380% along the way. Watsco’s most recent dividend hike was a 9% increase in October. Shares of WSO currently yield 3.74%.

Each of these companies will be added to the Dividend Dynamos at the end of the year.