United Technology (UTX) is the Dividend Star most of the simple dividend-growth filters miss. This is because they do not raise their dividend every year. UTX takes action on its dividend every six quarters, not every four quarters, as do many dividend stars. Such a policy means that about every three years their annual dividends flat line. Thus, the company is not included on many lists of companies with long-term histories of consecutive dividend hikes.

UTX has one of the most consistent dividend growth records of any company I follow. To top it off, the estimate of UTX's three to five year dividend growth rate is just under 12%. At that rate of growth its dividend will triple over the next ten years. Not bad for a company that has a current yield of 2.6%. Despite UTX's consistent dividend hikes and earnings growth over the last twenty years, the Dividend Valuation chart suggests that the company is significantly undervalued based on the historical relationships among its price growth, dividend growth, and interest rates.

Source: Rising Dividend Investing

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