Dividends are still rising and equity and income investors should expect more of the same for 2012. The Walt Disney Company (NYSE: DIS) joined in on the dividend hike brigade with another dividend hike on Wednesday evening. This is a move that we expected to occur, but the dividend gain was far more than we expected. Honestly, how many DJIA (NYSE: DIA) components actually raise their dividends by 50%? In a recent report, 24/7 Wall Street gave a stock-by-stock analysis of all 30 DJIA components individually to review which companies we expect will and will not raise their dividends in the very near future or in the early part of 2012.
The full report had more detailed data on most of these DJIA components, but these are some of the DJIA stocks we expect to hear from with a dividend hike in the coming weeks or early in 2012: AT&T Inc. (NYSE: T), Cisco Systems Inc. (NASDAQ: CSCO), The Coca-Cola Company (NYSE: KO), Exxon Mobil Corporation (NYSE: XOM), International Business Machines Corporation (NYSE: IBM), Johnson & Johnson (NYSE: JNJ), J.P. Morgan Chase & Co. (NYSE: JPM), 3M Company (NYSE: MMM), Pfizer Inc. (NYSE: PFE) and Wal-Mart Stores Inc. (NYSE: WMT).
Some of these are also weighted in key dividend ETFs like the iShares Dow Jones Select Dividend Index (NYSE: DVY), Vanguard Dividend Appreciation ETF (NYSE: VIG), PowerShares Dividend Achievers (NYSE: PFM) and the iShares High Dividend Equity (NYSE: HDV) ETF products.
We have broken out some summaries of each in here, although more detailed data on each may be found in the larger stock-by-stock review.
AT&T Inc. (NYSE: T) has some problems now that it has the multibillion dollar huge break-up fee as a designated charge. This could interrupt its dividend hike history, but Verizon Communications Inc. (NYSE: VZ) has a higher dividend payout ratio and it recently continued its practice of raising the payouts.
Cisco Systems Inc. (NASDAQ: CSCO) has already hinted at higher payouts and we would look for a 21012 announcement of a higher payout after its recent restructuring is farther behind it. Look for Cisco to boost its payout in 2012 for its March or July payment after its layoffs and restructuring are further behind it. Even with its silly share buybacks, Cisco’s payout ratio is only about 14% of its expected 2012 earnings and the company has a mountain of cash.