What separates income investors from dividend investors is the concept of a growing dividend. This dividend growth is the life-blood of a thriving dividend portfolio. The income derived from a quality, well-diversified portfolio is much more predictable than capital gains and the good companies routinely raise their dividends well in excess of the inflation rate.

Recently, the following companies announced increased cash dividends:

CMS Energy (CMS) is the largest utility in Michigan and the sixth largest gas and 13th largest electric utility in the U.S. January 29th the company increased its quarterly dividend to $0.15/share. The dividend is payable Feb. 26, 2010 to shareholders of record on Feb. 8, 2010. The ex-dividend date is February 4, 2010. The yield based on the new payout is 3.91%.

HCP (HCP) holds direct and joint venture investments in health care-related facilities across the U.S. February 1st the company increased its quarterly dividend to $0.465/share. The dividend will be paid on February 23, 2010 to stockholders of record as of the close of business on February 11, 2010. The ex-dividend date is February 9, 2010. The yield based on the new payout is 6.36%.

Source Capital (SOR) is a diversified closed-end management investment company. February 1st the company boosted its quarterly dividend 20% to $0.60/share. The dividend is payable Mar. 15, 2010, to shareholders of record as of the close of business Feb. 19, 2010. The yield based on the new payout is 5.65%.

Hershey (HSY) is a major producer of chocolate and confectionery products. February 2nd the company increased its quarterly dividend to $0.32/share. The dividend is payable March 15, 2010, to stockholders of record February 25, 2010. The yield based on the new payout is 3.45%.

L-3 Comm (LLL) is a provider of intelligence, surveillance, and reconnaissance systems. February 2nd the company raised its quarterly dividend to $0.40/share. The dividend is payable on March 15, 2010 to shareholders of record at the close of business on March 1, 2010. The ex-dividend date is February 25, 2010. The yield based on the new payout is 1.84%

Unitrin (UTR) provides property and casualty insurance, life and health insurance, and automobile finance services. February 3rd the company boosted its quarterly dividend 10% to $0.22/share. The dividend is payable on March 1, 2010 to its shareholders of record as of February 12, 2010. The ex-dividend date is February 10. The yield based on the new payout is 3.86%

News Corp (NWS) is a media conglomerate, with controlling interests in leading content and distribution assets across the globe, including Fox Entertainment. February 3rd the company increased its semi-annual dividend 25% to $0.075/share. The dividend is payable on April 14, 2010 with a record date for determining dividend entitlements of March 10, 2010. The ex-dividend date is March 8, 2010. The yield based on the new payout is 0.94%

Ross Stores (ROST) is an off-price retailer providing in-season branded apparel and other merchandise through over 1,000 stores in 27 states and Guam. February 4th the company raised its quarterly dividend 45% o $0.16/share. The dividend is payable on March 31, 2010 to stockholders of record as of February 19, 2010. The ex-dividend date is February 17, 2010. ROST is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 1.41%.

AGL Resources (AGL) is an energy services holding company provides natural gas to about 2.3 million customers. February 4th the company boosted its quarterly dividend 2.3% to $0.44/share. The dividend is payable March 1, 2010, to shareholders of record at the close of business on February 19, 2010. The yield based on the new payout is 5.00%.

PennantPark Investment (PNNT) specializes in direct and mezzanine investments in middle-market companies. February 4th the company increased its quarterly dividend to $0.26/share. The dividend is payable on April 1, 2010 to stockholders of record as of March 25, 2010. The ex-dividend date is March 23, 2010. The yield based on the new payout is 11.60%.

Archer Daniels Midland (ADM) is one of the world's leading agribusiness companies, with major market positions in agricultural processing and merchandising. February 4the the company raised its quarterly dividend to $0.15/share. The dividend is payable March 11, 2010, to stockholders of record February 18, 2010. The ex-dividend date is February 16. ADM is a Dividend Aristocrat and has raised its dividend for 35 consecutive years. The yield based on the new payout is 2.00%.

Colgate-Palmolive (CL) is a consumer products company markets oral, personal and household care, and pet nutrition products. February 4th the the company boosted its quarterly dividend 20% to $0.53/share. The dividend will be paid on May 14, 2010 to shareholders of record as of April 26, 2010. The ex-dividend date is April 22. On an annual basis, the new dividend rate is $2.03 vs. $1.72 per share previously. CL is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 2.66%.

UPS (UPS) is the world's largest express delivery company. February 4th the company increased its quarterly dividend to $0.47/share. The dividend is payable March 3, 2010, to shareholders of record on Feb. 16, 2010. The yield based on the new payout is 3.28%.

Hasbro (HAS) is a large toy company has brands that include Monopoly, Playskool and Tonka. February 4th the company raised its quarterly dividend by 25% to $0.25/share. The dividend will be payable on May 17, 2010 to shareholders of record at the close of business on May 3, 2010. The ex-dividend date is April 30. The yield based on the new payout is 3.20%.

J. B. Hunt Transport Services (JBHT) provides truckload, intermodal, and contract carriage services. February 4th the company boosted its quarterly dividend $0.12/share. The dividend is payable to stockholders of record on February 12, 2010. The dividend will be paid on February 26, 2010. The yield based on the new payout is 1.58%.

D&B (DNB) is a worldwide provider of business information and related decision support services and commercial receivables management services. February 4th the company increased its quarterly cash dividend to $0.35/share. This quarterly cash dividend is payable on March 18, 2010, to shareholders of record at the close of business on March 3, 2010. The yield based on the new payout is 1.80%.

To be a true dividend champion, a stock must consistently raise its dividend over more than just a few years. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

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For your reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network (DIV-Net) over the past week:

Articles From DIV-Net Members

• Dividends Value presented Dividend Stocks: Three Keys For Successful Investing
  
• The Dividend Guy presented 7 Warning Signs You Need to Repair Your Portfolio
  
• Dividend Growth Investor presented Dividend Investors are getting paid for waiting
  
• Barel Karsan presented The Focus Of Mutual Funds
  
• Dividend Tree presented Why Are We So Clueless about the Stock Market? – Book Review
  
• Buying Value presented The Effects of Layoffs on a Business
  
• moneygardener presented Colgate & UPS provide raises
  
• The Div Guy presented Blue Chips for the Long Run
  
• Disciplined Approach to Investing presented Dividend Payers Outperform Non Payers In January
  
• Old School Value presented PARL Net Net but Business Stinks
  
• Everyday Finance presented Innovative Ways to Hedge your Portfolio in This Market
  
• BuyLikeBuffett.com presented 4 Potential Value Plays
  
• 40percent 20years presented From Stock to Stinsen Warrants & Wall Street
  
• EPIC INVESTOR presented Be a Zen Investor
  
• Value Walk presented Warren Buffett Interview On CNBC

There are some really good articles here, please take time and read a few of them.

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To ensure a retirement that is free from financial concerns, there are certain things that must be done today. For many people this is not a desirable task. However, building a secure future by investing in quality dividend stocks is neither complicated nor overly burdensome. Below are three simple keys that will help you to be a better investor:

I. Understand Your Goals

If you don't know where you are going, how do you know when you get there? A large number of investors fail because they have no goals or investing convictions. Instead they jump from one investing method to whatever is hot today. Before investing, you should clearly define what you are tying to accomplish, then determine your goals and desires. It is my goal to create an ever-increasing income from dividend stocks, while it is my desire to beat the S&P 500 index over the long-term.

II. Select the Right Stocks

It is our nature to want it now. In dividend investing this means high yields. Depending on the the direction you chose in I. above, a portfolio of high yield stocks may not be the best means to help you accomplish your goals. Historically, high-yield stocks have been more prone to cut their dividends, so for me, they don't align well with my goal of "ever-increasing income". That is not to say I don't hold some high-yield, high-risk income stocks, but they are not my core income holdings. Instead, I prefer to focus on stocks with a reasonable yield and a long history of consistently raising their dividends. Companies in this category include:

Abbott Laboratories (ABT) - [Analysis]
Yield: 3.02 | Dividend Growth: 8.4% | Consecutive Years of Increases: 37

Genuine Parts Co. (GPC) - [Analysis]
Yield: 4.25 | Dividend Growth: 2.6% | Consecutive Years of Increases: 53

Johnson & Johnson (JNJ) - [Analysis]
Yield: 3.07 | Dividend Growth: 7.5% | Consecutive Years of Increases: 47

The Coca-Cola Company (KO) - [Analysis]
Yield: 3.02 | Dividend Growth: 7.9% | Consecutive Years of Increases: 47

McDonald's Corporation (MCD) - [Analysis]
Yield: 3.28 | Dividend Growth: 16.9% | Consecutive Years of Increases: 33

The Procter & Gamble Company (PG) - [Analysis]
Yield: 2.86 | Dividend Growth: 7.3% | Consecutive Years of Increases: 53

SYSCO Corporation (SYY) - [Analysis]
Yield: 3.50 | Dividend Growth: 4.2% | Consecutive Years of Increases: 39

III. Patience

The stock market does not travel in a straight line. There will be times it consistently goes down leaving you wondering if it will ever hit bottom. These are the times that many investors' patience is tried. But for those with clear goals and confidence in their chosen strategy, they will find that the most times are those that present the greatest opportunities.

Full Disclosure: Long ABT, GPC, JNJ, KO, MCD, PG, SYY. See a list of all my income holdings here.

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This article originally appeared on The DIV-Net January 25, 2010.

Linked here is a detailed quantitative analysis of United Technologies Corp. (UTX). Below are some highlights from the above linked analysis:

Company Description: United Technologies Corp. is an aerospace-industrial conglomerate with a portfolio including Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators and Carrier air conditioners, among other products.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:

1. Avg. High Yield Price
   
2. 20-Year DCF Price
   
3. Avg. P/E Price
   
4. Graham Number
   

UTX is trading at a discount to 1.) and 2.) above. Since UTX's tangible book value is not meaningful, a Graham number can not be calculated. The stock is trading at a slight discount to its calculated fair value of $69.44. UTX earned a Star in this section since it is trading at a fair value.

Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

1. Free Cash Flow Payout
   
2. Debt To Total Capital
   
3. Key Metrics
   
4. Dividend Growth Rate
   
5. Years of Div. Growth
   
6. Rolling 4-yr Div. > 15%
   

UTX earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. UTX earned a Star for having an acceptable score in at least two of the four Key Metrics measured. Rolling 4-yr Div. > 15% means that dividends grew on average in excess of 15% for each consecutive 4 year period over the last 10 years (1999-2002, 2000-2003, 2001-2004, etc.) I consider this a key metric since dividends will double every 5 years if they grow by 15%. The company has paid a cash dividend to shareholders every year since 1936 and has increased its dividend payments for 17 consecutive years.

Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:

1. NPV MMA Diff.
   
2. Years to > MMA
   

UTX earned a Star in this section for its NPV MMA Diff. of the $3,003. This amount is in excess of the $1,800 target I look for in a stock that has increased dividends as long as UTX has. If UTX grows its dividend at 15.0% per year, it will take 5 years to equal a MMA yielding an estimated 20-year average rate of 3.98%.

Other: UTX is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index.

Conclusion: UTX earned one Star in the Fair Value section, earned three Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a total of five Stars. This quantitatively ranks UTX as a 5 Star-Strong Buy.

Using my D4L-PreScreen.xls model, I determined the share price would need to increase to $83.47 before UTX's NPV MMA Differential decreased to the $1,800 minimum that I look for in a stock with 17 years of consecutive dividend increases. At that price the stock would yield 1.84%.

Resetting the D4L-PreScreen.xls model and solving for the dividend growth rate needed to generate the target $1,800 NPV MMA Differential, the calculated rate is 13.3%. This dividend growth rate is slightly less than the 15.0% used in this analysis, thus providing only a slim margin of safety. UTX has a risk rating of 1.25 which classifies it as a low risk stock.

UTX's product leadership has produced a wide-moat. Over the last ten years, the company has shown steady growth in both earnings and dividends. UTX has a strong balance sheet with 34% debt to total capital and an excellent free cash flow payout of 29%. Large backlogs at Airbus and Boeing, moderate demand for global infrastructure, strong demand for military helicopters and sustained productivity improvements will benefit UTX in the near-term. UTX is trading near my buy price of $69.44. However, I will limit purchases based on its low dividend yield. For additional information, including the stock's dividend history, please refer to its data page.

Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Full Disclosure: At the time of this writing, I was long in UTX (4.2% of my Income Portfolio). See a list of all my income holdings here.

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What separates income investors from dividend investors is the concept of a growing dividend. This dividend growth is the life-blood of a thriving dividend portfolio. The income derived from a quality, well-diversified portfolio is much more predictable than capital gains and the good companies routinely raise their dividends well in excess of the inflation rate.

Recently, the following companies announced increased cash dividends:

El Paso Pipeline Partners (EPB) owns and operates natural gas transportation pipelines and storage
assets. January 22nd the company increased its quarterly distribution of 2.9% to $0.36/unit. The distribution will be paid February 12, 2010 on all outstanding common and subordinated units to holders of record as of the close of business on February 1, 2010. The yield based on the new payout is 5.76%.

Intel (INTC) is the world's largest manufacturer of microprocessors, the central processing units of PCs, and also produces other semiconductor products. January 22nd the company raised its quarterly 12.5% to $0.1575/share. The dividend will be payable on March 1, 2010 to stockholders of record on Feb. 7, 2010. The ex-dividend date is February 4, 2010. The yield based on the new payout is 3.15%.

Rollins (ROL) provides pest and termite control services to residential and commercial customers. January 26th the company boosted its quarterly dividend 28.6% to $0.09/share. The dividend will be payable March 10, 2010 to stockholders of record at the close of business February 10, 2010. The ex-dividend date is February 8, 2010. The yield based on the new payout is 1.80%.

National Instruments (NATI) is a provider of software and hardware technology solutions for creating custom measurement and automation systems that are typically used for design, control, and test applications. January 26th the company approved an 8% sequential increase in the quarterly dividend to $0.13/share. This dividend is payable on March 1, 2010, to shareholders of record on February 8, 2010. The ex-dividend date is February 4, 2010. The yield based on the new payout is 1.70%.

Sunoco Logistics Partners (SXL) is a master limited partnership (MLP) formed by Sunoco Inc. to acquire, own and operate a group of refined product and crude oil pipelines and terminal facilities. January 26th the company raised its distribution 2.3% to $1.09/unit. The distribution is payable February 12, 2010 to unit holders of record on February 8, 2010. The yield based on the new payout is 6.16%.

Praxair (PX) is the largest producer of industrial gases in North and South America, and the second largest worldwide and it provides ceramic and metallic coatings. January 27th the company boosted its quarterly dividend 13% to $0.45/share. The dividend is payable on March 15, 2010 to shareholders of record on March 5, 2010. The ex-dividend date is March 3, 2010. PX is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 2.37%.

Holly Energy Partners (HEP) is a master limited partnership was formed by Holly Corp. to acquire, own and operate refined product pipeline and terminal facilities. January 27th the company increased its quarterly dividend to $0.805/unit. HEP has increased its distribution to unitholders every quarter since becoming a public partnership in July 2004 or 21 consecutive quarterly increases. The distribution will be paid February 12, 2010, to unitholders of record February 5, 2010. The ex-dividend date is February 3, 2010. The yield based on the new payout is 7.77%.

Energen (EGN) is a diversified energy company is involved in natural gas distribution, and oil and gas exploration and production. January 27th company raised its quarterly dividend 4% to $0.13/share. The dividend is payable March 1, 2010, to shareholders of record on February 15, 2010. The ex-dividend date is February 11, 2010. EGN is a Dividend Achiever and has raised its dividend for 28 consecutive years. The yield based on the new payout is 1.14%.

SJW (SJW) provides water service to a population of approximately one million people in the metropolitan San Jose (California) area. January 28th the company boosted its quarterly dividend to $0.17/share. The dividend is payable on March 1, 2010 to shareholders of record at the close of business on February 8, 2010. The ex-dividend date is February 4, 2010. SJW is a Dividend Achiever and has raised its dividend for 28 consecutive years. The yield based on the new payout is 3.07%.

Airgas (ARG) is a leading distributor of industrial, medical and specialty gases and related equipment also distributes safety and other disposable supplies through its network of stores. January 28 the company increased it quarterly dividend to $0.22/share. The dividend is payable March 31, 2010 to shareholders of record as of March 15, 2010. The yield based on the new payout is 1.88%.

Although growing its dividend is important, to be a great dividend stock a company must do it on a consistent basis. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

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