Dividend Hikes To Continue in 2012 (T, XOM, GE, PFE, CVX, JNJ, MSFT, PG, CSCO, JPM, WMT, KO, MMM)

Dividends have continued to rise.  Better yet, they are expected to keep rising for the rest of the year.  A study from Dow Jones Indexes showed a rise of almost 2.2% so far this year from the 30 Dow Jones Industrial Average from the previous quarter, but this is expected to be up by 8.4% for the total year in 2012 over 2011. To show just how important and relevant the DJIA still is for investors, the DJIA’s 30 components account for 37% of the total U.S. stock market payouts with their $107 billion expected to be paid out.

The Dow Jones Survey noted that the DJIA companies expected to pay out over $6 billion in 2012 (annualized) are as follows:

AT&T, Inc. (NYSE: T) was expected to be at $10.5 billion in indicated annual dividends.  It is the highest yield of about 5.7% in the DJIA.

Exxon Mobil Corporation (NYSE: XOM) is expected to be $9.1 billion in indicated annual dividends.  This is the largest market cap in the DJIA of over $400 billion, so even a 2.2% yield generates a lot in raw dollars.

General Electric Co. (NYSE: GE) is expected to pay out $7.2 billion in its indicated annual dividends.  GE’s yield is now about 3.5%.

Pfizer Inc. (NYSE: PFE) is expected to be at $6.8 billion in indicated annual dividends. Pfizer’s yield is about 3.9% today.

Chevron Corporation (NYSE: CVX) is expected to be $6.5 billion in indicated annual dividends.  Chevron is worth about half of Exxon in market capitalization but it offers a yield of about 3.2%.

Johnson & Johnson (NYSE: JNJ) is expected to be $6.2 billion in indicated annual dividends.  J&J yields about 3.6%.

Microsoft Corporation (NASDAQ: MSFT) is expected to be $6.0 billion in indicated annual dividends.  Microsoft yields about 2.5%, which is not great for a DJIA stock but still high for a tech stock considering its recent rally.

Procter & Gamble (NYSE: PG) is expected to be $5.8 billion in indicated annual dividends.  P&G yields about 3.3%.

AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and General Electric Co. (NYSE: GE) are considered to be the top three payers accounting for 9.2% of all dividends paid by stocks.

The six DJIA companies which have recently increased their payouts are as follows: Cisco Systems, Inc. (NASDAQ: CSCO) with a 33% hike but still with a low payout rate; J.P. Morgan Chase & Co. (NYSE: JPM) by 20% even if we were disappointed with its dividend hike; Pfizer Inc. (NYSE: PFE) by 10%; Wal-Mart Stores, Inc. (NYSE: WMT) by almost 9%; The Coca-Cola Company (NYSE: KO) by 8.5%; and 3M Co. (NYSE: MMM) by almost 7.3%.

Speaking of high-yield and value, the utility sector is looking ripe in value after the shares have pulled back about 10% from their highs with dividend yields of 5% and more in the top four picks expected to still grow.

Dividend investors have had to be a bit more patient in 2012, but the trend for higher payouts appears to still be in place.

JON C. OGG