Six Dividend Stocks Rewarding Shareholders With A Raise

The Valspar Corp (NYSE:VAL) develops, manufactures, and distributes a range of coatings, paints, and related products worldwide. It operates in two segments, Coatings and Paints. Last week, the company raised its quarterly dividend by 12.10% to cents/share. This marked the 39th consecutive annual dividend increase for this dividend champion. Over the past decade, The Valspar Corp (NYSE:VAL) has managed to raise its dividends at a rate of 11.90%/year. Currently, the stock is overvalued at 20.80 times earnings and yields 1.50%. The Valspar Corp (NYSE:VAL) is in the process of being acquired by Sherwin-Williams Co (NYSE:SHW) for $105 – $113/share in cash. Therefore, I would not consider the former. The latter may be interesting if it ever gets below 20 times earnings, and even more appealing at a P/E of 15 – 16.

SYSCO Corporation (NYSE:SYY), through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. Last week, the company raised its quarterly dividend by 6.50% to 33 cents/share. This marked the 47th consecutive annual dividend increase for this dividend champion. Over the past decade, SYSCO Corporation (NYSE:SYY) has managed to raise its dividends at a rate of 7.20%/year. Currently, the stock is overvalued at 22.10 times forward earnings and yields 2.50%. I am not interested in Sysco (2), since the company has failed to grow earnings per share over the past decade. Without growth in earnings per share, future dividend growth will be impossible.

MDU Resources Group Inc (NYSE:MDU) operates as a diversified natural resource company in the United States. Its Electric segment generates, transmits, and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming. Last week, the company raised its quarterly dividend by 2.70% to 19.25 cents/share. This marked the 26th consecutive annual dividend increase for this dividend champion. Over the past decade, MDU Resources Group Inc (NYSE:MDU) has managed to raise its dividends at a rate of 4.10%/year. Currently, the stock is overvalued at 25 times forward earnings and yields 2.70%. The lack of earnings growth over the past decade, and the high valuation make this stock an avoid for me.

Full Disclosure: Long UNP

Additional Links:

(1) http://www.dividendgrowthinvestor.com/2010/03/ten-year-dividend-growth-requirement.html

(2) http://www.dividendgrowthinvestor.com/2013/11/how-to-read-my-weekly-dividend-increase.html