Dividend Achiever Notes

In all of the market turmoil of the last two years, it is interesting to note that three Dividend Achievers are above their 2007 highs. The three companies are:

• Lancaster Colony (LANC) 39 years of div. increases and within 6% of top
  
• Family Dollar (FDO) 32 years of div. increases and within 6% of top
  
• Ross Stores (ROST) 14 years of div. increases and within 7.84% of top
  

Not far behind are the following companies:This blog is being featured on www.condron.us, I hope you find this useful.

• Suburban Propane (SPH) 10 years of div. increases and within 18% of top
  
• Valspar (VAL) 30 years of div. increases and within 17% of top
  

One way to look at these stocks is that if you bought them at their prior highs then you have lost little or nothing during one of the worst bear markets in history.

Another way to look at these stocks is that they are the most likely sell candidates since it is clear that they are selling at relatively high levels. Ross Stores (ROST) has the most interesting chart pattern because it has gone down to the $23 level 5 times since 2004 at regular intervals and moved up from there. This might mean that ROST can be considered a buy candidate at $24 or a short sell candidate at the current level. I hope to be on top of ROST when and if it hits $24 again. Touc.

Stocks to Consider...

The following are what I consider to be the most compelling Dividend Achievers to research and possibly buy at this time. All of these stocks share similar characteristics. First, all of these stocks are trading in a range or near a new low. Any stock that has been able to return to the investor income (and earnings) while the price has remained essentially the same over an extended period of time translates into an underappreciated asset. Also, according to Geraldine Weiss' IQTrends (www.iqtrends.com) model some of these stocks are near their respective buying levels based on her dividend yield model. These stocks have also increased their dividend every year for at least 10 consecutive years in a row. The dividend for these stocks do not exceed company earnings.

• AFLAC (AFL): This company is among the leading insurance companies in the U.S. and Japan. This company has traded in the $45 - $50 range since 2005 while the dividend has increased over 17% annually over the same period. According to IQTrends (www.iqtrends.com) written by Geraldine Weiss, AFL is undervalued when the dividend reaches 2%. The current dividend yield is at 1.60%. AFL has increased it's dividend for 22 years in a row.
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• Bank of Hawaii (BOH): BOH is the largest bank in the state of Hawaii. BOH has increased it's dividend for 27 consecutive years in a row. This stock has traded in a range for the last 3 years. According to IQTrends BOH is undervalued with a dividend yield of 4%. BOH is yielding around 3.20%. While I am hesitant to dive into banking stocks, especially after the rash of mortgage loan delinquencies, I believe that BOH will prove profitable since it finances some of the most valuable real estate in the world. BOH has traded in $50 range since 2004.
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• Lancaster Colony (LANC): This company is a diversified consumer product company that produces packaged foods to automotive parts. LANC has increased it's dividend for 35 years straight. This stock has traded in a range since 2002.
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• Leggett and Platt (LEG): LEG has traded in the $20 -$30 since 1998. This translates into an incredible amount of untapped value. LEG has increased it's dividend for 33 years.

Good luck with your research. Please note that this list is expected to change.

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