The Dynamic Dividend

11 Long Dividend Growth Streaks About to End

A little more than 200 publicly-traded companies (see all of them here) entered 2011 with dividend growth streaks that were at least a decade long. That is, they had improved their annual dividend output for at least ten consecutive years. But not all of those companies will be exiting 2011 with their streaks in tact.

Below are the eleven companies that will not be carrying their streaks into 2012.

Some inexplicably failed to give their shareholders a raise despite being fiscally capable of providing at least a nominal nudge. Others were recognized for their outstanding financial stability and either acquired or merged with. Some, unfortunately, were simply unable to keep their streaks — and in some cases, dividends — alive.

CenturyLink (CTL) — 37 Years

CenturyLink (CTL), which had improved its dividend output every year since 1974, unceremoniously put an end to its streak with a one-sentence press release on November 15.

The largest telecom company in the United States declared a dividend of $0.725 per share for the eighth consecutive quarter, ensuring this year’s dividend total would merely match — and not beat — the $2.90 per share CenturyLink paid in 2010.

Harleysville Group (HGIC) — 25 Years

Harleysville actually raised its dividend for the 25th consecutive year in August, but a month later agreed to be acquired by Nationwide Mutual Insurance Company.

Assuming the deal receives regulatory approval, it’s expected to be finalized in early 2012. Harleysville shareholders will likely be upset to see this dividend-paying gem disappear from their brokerage accounts, but they’ll just have to be consoled by the huge premium Nationwide has agreed to pay: $60.00 per share, or 137% higher than where the stock was trading just before rumors of the deal began swirling.

Harleysville Savings Financial Corp (HARL) — 22 Years

Harleysville, which had improved its dividend output every year from 1989 through 2010, declared a dividend of $0.19 per share for the eighth consecutive quarter back in October. Even a nominal bump to its payout would have extended the bank holding company’s dividend growth streak to a 23rd consecutive year, but the parent of Pennsylvania-based Harleysville Savings Bank opted to sit tight.

Orrstown Financial Services (ORRF) — 19 Years

Orrstown had improved its dividend output every year since 1992 coming into the year, and gave its shareholders a 2% raise in January, all but assuring its streak would extend to a 20th consecutive year of dividend growth. But the government had other ideas.

The company announced in October that its primary Federal regulator would not allow it to declare a dividend in the fourth quarter. In addition, Orrstown could give no assurances “as to whether, or in what amounts, cash dividends will be declared in the future or, if declared, whether they will continue, be suspended or discontinued.” Translation: Streak over.

Harsco Corporation (HSC) — 16 Years

Harsco had improved its dividend output every year since 1995, but was unable to extend its streak this year. The provider of industrial services and engineered products declared a dividend of $0.205 per share for the eighth consecutive quarter in November, locking in a 2011 dividend total of $0.82 per share — exactly what it paid in 2010.

Universal Forest Products (UFPI) — 16 Years

Universal Forest gave its shareholders a gaudy 233% raise at the end of 2009 — and hasn’t adjusted its payout since. The lumber and building products company, which had improved its annual dividend output every year since 1995, maintained a dividend rate of $0.80 per share through both 2010 and 2011.

Consolidated Water Co. (CWCO) — 14 Years

Consolidated Water began returning cash to its shareholders in 1996, and improved its dividend output every year through 2010. But the developer of seawater desalination plants and water distribution systems failed to give its payout a bump this year, ending its dividend growth streak after 14 years.

Ohio Valley Banc Corp (OVBC) — 14 Years

Ohio Valley Banc Corp declared a dividend of $0.21 per share for the eighth consecutive quarter in October, ensuring this year’s dividend total would merely match the $0.84 per share the financial holding company paid in 2010. Prior to the recent flatness, Ohio Valley had improved its dividend output every year since initiating its payout in 1996.

Shenandoah Telecommunications (SHEN) — 14 Years

Shenandoah, which had given its shareholders a raise every year since 1997, declared an annual dividend of $0.33 per share for the second consecutive year in October. A slight boost to its payout would have marked the 15th consecutive year the telecommunications holding company had improved its dividend.

NSTAR (NST) — 14 Years

NSTAR actually raised its payout by 6% coming into the year, which should have been enough to secure its 13th consecutive year of dividend growth. But the energy delivery company has since agreed to merge with Northeast Utilities (NU), with the resulting company retaining the NU name.

NSTAR’s name may be wiped from the dividend growth record books, but shareholders should hardly worry about their income situation once the transaction closes. Northeast Utilities has raised its dividend every year since reinstating its payout in 1999, increasing its quarterly rate by a total of 175% over that short period. And the utility holding company’s dividend growth prospects should only strengthen with NSTAR under its wing.

Meridian Bioscience (VIVO) — 11 Years

Meridian Bioscience, which raised its dividend aggressively for nearly two decades, gave every indication its payout has finally plateaued in November.

The life science company declared a dividend of $0.19 per share for the eighth straight quarter, ensuring Meridian will not extend its dividend growth streak to a 12th consecutive year. Worse, the company locked its payout at the current rate for the foreseeable future by setting its 2012 annual dividend rate at $0.76 per share.

The prolonged period of dividend flatness is unheard of for Meridian, which had raised its dividend 19 times since it began returning cash to shareholders in 1991. The company improved its dividend output in 18 of its first 19 years as a dividend-paying company, achieving double-digit payout growth 15 times during the streak.