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Firms That Will Likely Hike Dividends: Pros

Monday, 9 May 2011 | 12:10 PM ET

With several notable companies raising dividends last week, Joseph Keating, executive vice president, CIO of CenterState Wealth Management, and Mark Tepper, managing partner and co-founder of Strategic Wealth Partners, said a few more firms are on tap for a payout.

“As you begin to see the earnings accelerate, the dividends have to follow shortly thereafter,” Tepper told CNBC Monday.

“And it’s amazing, but we’re only a third of the way into the year so far and we’ve already seen more net dividend increases this year than in all of 2010,” Tepper continued.

Tepper said he likes companies with a long track record of payouts, and those that have a track record of growing their dividends faster than the rate of inflation.

His top picks include Altria , Duke Energy , Bristol-Myers Squibb and Kinder Morgan .

In the meantime, Keating said he likes Clorox and Heinz .

Clorox "has raised their dividend 38 percent over the past four years and also HJ Heinz will likely be raising shortly—they’ve raised their dividend around 29 percent over the past four years.”

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Scorecard—What They Said:

  • Keating's Previous Appearance on CNBC (Apr. 20, 2011)
  • Tepper's Previous Appearance on CNBC (Apr. 12, 2011)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Companies That Raised Dividend Last Week:

PepsiCo

Cardinal Health

CSX

Whole Foods

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Disclosures:

Keating personally owns shares of PEP, CLX, HNZ, EPD and SXL.

Tepper’s firm owns shares of MO, BMY, KMP, DUK and DVY.

Tepper does not own shares of MO, BMY, KMP, DUK or DVY.

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Disclaimer

  Price   Change %Change
BMY
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CAH
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CLX
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CSGN
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DUK
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HNZ
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KMP
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MO
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PEP
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