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Sunday, February 7, 2010

Dividends save the day -- 10 stocks with strong up-trends and dividend growth

Everyone is aware that the market has been going through some tough times for the last few weeks. Major averages are off their peaks roughly 7% and a full-fledged 10% correction or worse is not out of the question.

It turns out, however, that not every stock is taking a dive. I ran a screen that that looks at the Trend Leaders list at Alert HQ and looks for which stocks have increased their dividends. These dividend growers seem to be practically impervious to the downturn. And they stand out because so many others on the Trend Leaders list these days are inverse ETFs.

Here is the list of 10 dividend growers that are exhibiting strong up-trends on their stock charts. Note that in order to be on the Trend Leaders list a stock has to show strong results in all three indicators: Aroon, DMI and MACD.

Symbol Name Dividend TTM New Dividend % Increase
MTR MESA ROYALTY TRUST 2.169 3.43 58.14%
NRGP Inergy Holdings, L.P. 3.32 3.76 13.25%
DV DEVRY, INC. 0.18 0.20 11.11%
ARG AIRGAS, INC. 0.70 0.88 25.71%
LANC Lancaster Colony Corporation 1.16 1.20 3.45%
LSBX LSB Corporation 0.22 0.28 27.27%
PRGO Perrigo Company 0.23 0.25 8.70%
TESS TESSCO Technologies Incorporated 0.20 0.40 100.00%

Here's a few comments on some of the stocks on this list:
  •  MESA ROYALTY TRUST (MTR) is benefiting from solid performance of its oil and gas properties
  • Inergy Holdings, L.P. (NRGP) has been absolutely relentless in its march upward. It is also involved in energy and operates in the entire supply chain for natural gas, from processing to sales to retail customers.
  • DeVry (DV) has actually broken out to the upside as it pretty much ignores the downturn. It may be in line to benefit from the administration's proposed higher education plans.
  • Airgas (ARG) just received a $1.5 billion takeover offer from Air Products & Chemicals (APD) so I'm not the only one seeing value here
  • Lancaster Colony Corporation (LANC) just reported higher earnings and has also broken out to the upside
  • LSB Corporation (LSBX) is a regional bank - not much news just conservative management and the ability to raise the dividend rather than look for government handouts
  • Perrigo Company (PRGO) is another stock with a relentless up-trend. This healthcare stock is benefiting from good earnings and analyst upgrades.
  • TESSCO Technologies Incorporated (TESS) has been on a tear since early December. The company just reported good quarterly earnings and is the only tech stock on this list.
Dividends can provide investors comfort when a stock is pulling back. These ten stocks have avoided the recent market pullback and are boosting dividends, to boot. Not a bad combination.

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