This week has seen another mammoth helping of dividend increases, with some big names such as IBM, Exxon and Chevron leading the way. Let’s get straight down to business.

Ordinary Stock and Unit Trusts

Travelers (TRV), a commercial insurance provider, has increased its dividend to $0.36 per share. This produces a yield of 2.85%. CostCo Wholesale (COST), a huge international membership warehouse operator, has increased its quarterly dividend 14% to $0.205 per share. This generates a new yield of 1.39%. Holly Energy Partners (HEP), an oil refinery operator, has increased its quarterly distribution to $0.815 per unit. This brings the new yield up to 6.98%. International Paper (IP), an international provider of paper and packaging materials, has increased its dividend to $0.125 per share. This generates a new yield of 1.85%.

Alliance Holdings GP, L.P. (AHGP), industrial coal supplier, has increased its quarterly distribution 2.8% to $0.465 per unit. This gives the unit a new yield of 5.49%. Inergy Holdings (NRGP), a wholesale supplier of propane, has increased its distribution to $0.975 per unit. This produces a new yield of 5.31%. EarthLink (ELNK), a well-known US internet services provider, has increased its dividend to $0.16 per share, giving an attractive yield of 6.88%. Williams Partners (WPZ), provider of natural gas services, has increased its quarterly distribution to $0.66 per unit, generating a fresh yield of 6.31%.

Sunoco Logistics Partners LP (SXL), a large owner of refinery facilities, has increased its quarterly dividend to $1.11 per unit. This produces a yield of 6.54%. Sturm, Ruger & Co (RGR), a domestic firearm producer, has increased its dividend 55% to $0.093 per share. This gives a fresh yield of 2.16%. TransAlta Corp. (TAC), an owner of energy generation equipment worldwide, has increased its quarterly dividend to $0.29 per share. This gives a new yield of 5.59%. Duff & Phelps (DUF), an international financial advisory company, has increased its dividend 20% to $0.06 per share. This generates a new yield of 1.50%.

Dividend Achievers

Community Bank System (CBU), financial service provider in New York, has increased its quarterly dividend 9.1% to $0.24 per share. This dividend gives a yield of 3.89%. This is the 17^th consecutive year that Community Bank System has increased its dividend. IBM (IBM), a large international technology conglomerate, has increased its dividend 18% to $0.65 per share. This gives a new yield of 2.02% and is the 15^th year that IBM has increased its dividend. Chevron (CVX), a very large oil company, has increased its quarterly dividend 5.9% to $0.72 per share. This produces a new dividend of 3.37%, and is the 23^rd such year that Chevron has increased its dividend. Cullen/Frost Bankers (CFR), a bank holding company based in Texas, has increased its dividend to $0.45 per share. This gives a new yield of 3.02%. This is the 16^th consecutive year that Cullen/Frost Bankers has increased its dividend.

Dividend Aristocrats

WW Grainer (GWW), perhaps the world’s largest supplier of industrial tools and supplies, has increased its quarterly dividend 17% to $0.54 per share. The yield based on the new dividend is 1.99% and this is the 39^th consecutive year that WW Grainer has increased its dividend. Exxon (XON), a very large oil company, has increased its dividend 4.8% to $0.44 per share, producing a dividend of 2.54%. This is the 28^th consecutive year that Exxon has increased its dividend.

Final Thoughts

The current crisis with the BP oil spill is an absolute disaster, but from a passive income investor’s point of view it might be the perfect opportunity to squeeze out a few extra basis points into the yields; oil company shares could well dip as investors realize the dangers of investing in oil companies – it has been estimated that BP will have to foot a bill of $15bn for the clean-up operation from this slick.

IBM appeared in our dividend achievers section today for raising dividends 15 years in a row, but even more exciting is the fact that IBM has increased dividends in double digits for the past 7 years in a row. This is a company that is growing fast, and is happy to look after loyal, long term share holders. Perhaps it’s best to get some money pumped into them to take advantage of the large increases as soon as possible.

Finally, a lot of energy companies feature here with very attractive yields. Just be aware that an alarming number of them are actually unit trusts. There are slightly different rules for these types of investments, so make sure you do your research to gauge whether or not these are the types of investments you want to make.

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