MONTHLY DIVIDEND PAYOUT PREDICTOR

MONTHLY DIVIDEND PAYOUT

PREDICTOR

Monthly Dividend Payout Predictor

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by David Peltier

Are you interested in creating a portfolio that generates a steadily growing stream of income year-round? David Peltier and Dividend Stock Advisor have created calendar of companies have a long track record (at least 30 years) of consistently raising their dividends on schedule, year-in and year-out.

Identifying predictable growth is the key to successful, long-term dividend investing. This calendar tells you what stocks offer this stability and when they usually announce these increases.

By selecting one or two names from each month, investors can also construct a diversified portfolio of dividend stocks that generates steadily growing income throughout the year.

January California Water Service (CWT:NYSE) is a utility that has raised its dividend 45 consecutive years and will likely make the streak 46 years in January 2013. The company pays out $0.1575 a share (3.2% yield) each quarter, which is equal to 61% of expected 2013 earnings of $1.03.

We generally look for companies that pay less than 50% of their earnings out as dividends; but the earnings of utilities companies tend to be more stable and they can afford a higher payout ratio. California Water's yield is toward to the midpoint of the industry range.

Also: Consolidated Edison (ED:NYSE), Energen (EGN:NYSE), Family Dollar (FDO:NYSE), McGraw-Hill (MHP:NYSE), Pentair (PNR:NYSE) and SJW (SJW:NYSE).

February Diebold (DBD:NYSE) makes automated-teller and voting machines.

Number 1

The company has boosted its dividend 59 consecutive years and is on track to make the streak 60 years in February 2013. This is currently the longest streak of annual dividend increases in the market.

Diebold pays out $0.285 a share (3.8% yield) each quarter, which can be covered 2.1x with expected 2013 earnings of $2.38. The current dividend is 2 percentage points higher than what the benchmark 10-

ABOUT THE AUTHOR

Meet David Peltier, Portfolio Manager Dividend Stock Advisor

David Peltier joined TheStreet, the leading financial information and investment resource firm, as a research associate in August 2001. In addition to Dividend Stock Advisor, he also writes and manages the very popular Stocks Under $10. David has managed products that covered deep-discount value investing and used dividend stocks as part of a retirement savings portfolio. Today, thousands of investors--from individual to institutional-- rely on him for his expertise and insights into high potential, long-term investing strategies and stock picks.

David graduated from New York University's Stern School of Business with a degree in Finance. Prior to TheStreet, he was an analyst for Individual Investor magazine and its website. In addition to his regular video appearances for TheStreet, he has been a guest on NPR, Nightly Business Report, CNNfn, WNYW-TV and presented at The Money Show. David also hosts a live monthly chat on Twitter (@davidspeltier).

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year treasury note yields and the company also has a stable balance sheet.

Also: 3M (MMM:NYSE), Chubb (CB:NYSE), Coca-Cola (KO:NYSE), Colgate-Palmolive (CL:NYSE), Genuine Parts (GPC:NYSE), Kimberly-Clark (KMB:NYSE), Sherwin-Williams (SHW:NYSE) and Sigma-Aldrich (SIAL:Nasdaq).

March Wal-Mart (WMT:NYSE) is the world's largest retailer in several key categories. The company has increased its dividend 28 consecutive years and will likely do so for the 39th time in March 2013.

Wal-Mart pays out $0.3975 a share each quarter (2.3% yield), which can be covered 3.4x with expected fiscal 2014 (ending January) earnings of $5.40. The current dividend is toward the high end of the industry range and the retailer also has a strong balance sheet.

Also: Air Products (APD:NYSE), Piedmont Natural Gas (PNY:NYSE) and WGL (WGL:NYSE).

April Procter & Gamble (PG:NYSE) is a bellwether of the consumer staples sector, with major household brands like Bounty, Charmin, Duracell, Gillette and Tide. The company has raised its quarterly dividend 56 consecutive years and will likely do so for the 57th straight time in April 2013.

and snack food. The company has upped its dividend 40 consecutive years and we believe the 41st time will come in May 2013. Pepsico pays out $0.5375 a share (3% yield) each quarter, which is equal to 49% of expected 2013 earnings of $4.41. The company's dividend is 25 basis point higher than the offering of its top competitor, Coca-Cola (KO:NYSE). Also: Clorox (CLX:NYSE) and Lowe's (LOW:NYSE).

June National Fuel Gas (NFG:NYSE) is a vertically-integrated natural gas producer and utility. The company has raised its dividend 42 consecutive years and will likely make the streak 43 years in June 2013.

National Fuel Gas pays out $0.365 a share (2.7% yield) each quarter, which is equal to 52% of expected fiscal 2013 (ending June) earnings of $2.78. The company's dividend is higher than the offering of the average company in the S&P 500.

Also: CR Bard (BCR:NYSE), Medtronic (MDT:NYSE), Target (TGT:NYSE) and Tootsie Roll (TR:NYSE).

July Walgreen (WAG:NYSE) is a leading retail drugstore operator. The company has increased its quarterly dividend 37 consecutive years and is on track for the 38th time in July 2013.

Procter & Gamble pays out $0.562 a share (3.2% yield) each quarter, which is equal to 52% of expected fiscal 2014 earnings of $4.31. The company's dividend is toward the high end of the industry range and is also backed by a solid balance sheet.

Also: Exxon Mobil, HB Fuller (FUL:NYSE), Johnson & Johnson (JNJ:NYSE) and WW Grainger (GWW:NYSE).

May Pepsico (PEP:NYSE) is a leading producer of beverages

Walgreen pays out $0.275 a share (2.8% yield) each quarter, which can be covered 3x with expected fiscal 2013 (ending July) earnings of $3.27. The company's dividend is at the high

Number 1

end of the industry range.

August Dover (DOV:NYSE) manufactures industrial machinery. The company has boosted its payout 57 consecutive years and we believe the 58th time will come in August 2013. Dover pays out $0.35 a share (2.1% yield) each quarter, which is equal to 27% of expected fiscal 2013 earnings of $5.23. The

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company also has a solid balance sheet.

Also: Altria (MO:NYSE), Carlisle (CSL:NYSE), Cincinnati Financial (CINF:Nasdaq) and MGE Energy (MGEE:Nasdaq).

September McDonald's (MCD:NYSE) is a leading quick-service restaurant operator. The company has upped its payout 36 consecutive years and will likely do so for the 37th time in September 2013.

McDonald's pays out $0.77 a share (3.3% yield) each quarter, which can be covered 1.9x with expected 2013 earnings of $5.81. The dividend is at the high end of the industry range and is also supported by the company's strong balance sheet.

the mid-point of the industry range and is further supported by the company's strong balance sheet.

Also: Automatic Data (ADP:NYSE), Becton Dickinson (BDX:NYSE), Emerson Electric (EMR:NYSE), Lancaster Colony (LANC:Nasdaq), Sysco (SYY:NYSE), Universal (UVV:NYSE), Vectren (VVC:NYSE).

December Nucor (NUE:NYSE) is a steel producer. The company has boosted its dividend 40 consecutive years and we believe the 41st time will come in December 2013. Nucor pays out $0.3675 a share (3.1% yield), which is equal to 52% of expected 2013 earnings of $2.78. The company's dividend is at the high end of the industry range.

Also: Clarcor (CLC:NYSE).

October Northwest Natural Gas (NWN:NYSE) is an Orgeon-based natural gas utility. The company has raised its dividend 57 consecutive years and will likely make the streak 58 years in October 2013.

Also: ABM Industries (ABM:NYSE), Pfizer (PFE:NYSE) and Valspar (VAL:NYSE).

Northwest pays out $0.445 a share (4% yield) each quarter, which is equal to 71% of expected 2013 earnings of $2.52. The dividend is toward the high end of the industry range and is also supported by the company's solid balance sheet.

Also: Eaton Vance (EV:NYSE), RPM (RPM:NYSE) and Stepan (SCL:NYSE).

November

Number 1

Hormel Foods (HRL:NYSE) makes meat and poultry food products. The company has increased its dividend 47 consecutive years and is on track for the 48th time in November 2013.

Hormel pays out $0.17 a share (1.9% yield) each quarter, which can be covered 2.9x with expected fiscal 2013 (ending October) earnings of $1.96 a share. The dividend is toward

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