Dividends are still rising and equity and income investors should expect more of the same for 2012. The Walt Disney Company (NYSE: DIS) joined in on the dividend hike brigade with another dividend hike on Wednesday evening. This is a move that we expected to occur, but the dividend gain was far more than we expected. Honestly, how many DJIA (NYSE: DIA) components actually raise their dividends by 50%? In a recent report, 24/7 Wall Street gave a stock-by-stock analysis of all 30 DJIA components individually to review which companies we expect will and will not raise their dividends in the very near future or in the early part of 2012.

The full report had more detailed data on most of these DJIA components, but these are some of the DJIA stocks we expect to hear from with a dividend hike in the coming weeks or early in 2012: AT&T Inc. (NYSE: T), Cisco Systems Inc. (NASDAQ: CSCO), The Coca-Cola Company (NYSE: KO), Exxon Mobil Corporation (NYSE: XOM), International Business Machines Corporation (NYSE: IBM), Johnson & Johnson (NYSE: JNJ), J.P. Morgan Chase & Co. (NYSE: JPM), 3M Company (NYSE: MMM), Pfizer Inc. (NYSE: PFE) and Wal-Mart Stores Inc. (NYSE: WMT).

Some of these are also weighted in key dividend ETFs like the iShares Dow Jones Select Dividend Index (NYSE: DVY), Vanguard Dividend Appreciation ETF (NYSE: VIG), PowerShares Dividend Achievers (NYSE: PFM) and the iShares High Dividend Equity (NYSE: HDV) ETF products.

We have broken out some summaries of each in here, although more detailed data on each may be found in the larger stock-by-stock review.

AT&T Inc. (NYSE: T) has some problems now that it has the multibillion dollar huge break-up fee as a designated charge. This could interrupt its dividend hike history, but Verizon Communications Inc. (NYSE: VZ) has a higher dividend payout ratio and it recently continued its practice of raising the payouts.

Cisco Systems Inc. (NASDAQ: CSCO) has already hinted at higher payouts and we would look for a 21012 announcement of a higher payout after its recent restructuring is farther behind it. Look for Cisco to boost its payout in 2012 for its March or July payment after its layoffs and restructuring are further behind it. Even with its silly share buybacks, Cisco’s payout ratio is only about 14% of its expected 2012 earnings and the company has a mountain of cash.

The Coca-Cola Company (NYSE: KO) has already had three straight quarters of a $0.47 payout and it has raised its dividend yearly before, during and after the recession. The beverage giant is increasing its investment into emerging markets as the North American market is peaked. Still, the company has plenty of room to increase its 2.8% dividend yield in the years ahead. The company is still paying out 45% to 50% of its expected earnings ahead.

Exxon Mobil Corporation (NYSE: XOM) recently paid out its third straight quarter of $0.47 as a dividend and Chevron Corporation (NYSE: CVX) recently hiked its payout in less than the four-quarter norm. Exxon is likely to boost its payout (like to $0.50) for its May 2012 dividend unless it surprises us with a hike sooner.

International Business Machines Corporation (NYSE: IBM) has seen three straight quarters of $0.75 paid out and it has a long history of annual dividend hikes and pays out only about 22% of its expected 2011 income. Would Warren Buffett have spent $10 billion or so buying up IBM shares if he thought they would not raise dividends? Look for a hike to be announced for its May 2012 payout.

Johnson & Johnson (NYSE: JNJ) has paid $0.57 for three straight quarters in a row of dividends, so we look for one more quarter in February and then would expect a dividend hike for its May 2012 payout. Just do not expect a huge hike from J&J.

J.P. Morgan Chase & Co. (NYSE: JPM) is now only one month away from its fourth dividend payout of $0.25 and frankly it remains the most likely of the money-center banking giants that might be able to strong-arm regulators into approving a higher dividend payout. Jamie Dimon has said previously that he wants to raise the dividend and J.P. Morgan has generally been accepted as one of the banks that will pass whatever stress tests that the regulators will give. Expect the dividend discussions to heat up here in the first quarter of 2012 for the April payout.

3M Company (NYSE: MMM) has now paid its fourth consecutive payout of $0.55 per quarter and it has a deep history of raising its dividends annually. The company even raised its payouts during the recession. Expect a higher payout announcement after the first of the year for its dividend due in February.

Pfizer Inc. (NYSE: PFE) might have been at coin-toss odds for a dividend hike considering that it was losing its Lipitor patent. Now that Merck & Co. Inc. (NYSE: MRK) hiked its payout, we expect that Pfizer will announce in the coming weeks or next month that it will boost its payout as it tries to get its dividend back to the old glory days. A low payout ratio (under 40%) and the notion that Merck now greatly outyields Pfizer helps boost the odds for another hike for its February 2012 dividend payment.

Wal-Mart Stores Inc. (NYSE: WMT) is soon to have its fourth payout of $0.365, so we will be looking for its dividend hike news in the first quarter of 2012. It raised its payout during the recession, so why would it stop now? It does not exactly need the cash for big acquisitions and the company is now at the higher-end of its long-term trading range.

Again, see that full stock by stock report on all 30 DJIA components.

JON C. OGG

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