Kent A. Newcomb, CFA, Equity Sector Analyst
Joseph E. Buffa, Equity Sector Analyst
January 2014
DSIP List
Commentary from ASG's Equity
Sector Analysts
DSIP List Dividend History - 2015
The Diversified Stock Income Plan (DSIP List) focuses on companies that we believe will provide consistent
annual dividend growth over a long-term investment horizon. Our objective is to provide a broad list of high
quality, industry leading companies from which an investor can assemble a well-diversified portfolio.
Through consistent dividend growth, our goal is to help investors stay ahead of the wealth eroding effects of
inflation.
Many DSIP List companies have a long history of providing investors with a rising stream of income
through annual dividend growth. In Table 1 on pages 2-4, we list the calendar year dividends paid since 2005
for each company included on the DSIP List at the beginning of 2015. We also provide the historical oneyear, three-year, five-year and 10-year dividend growth rates for each company. At the bottom of the table, we
provide the compound annual growth rate of the U.S. Consumer Price Index, a common measure of inflation.
Although it is not our intent that investors own every company on the DSIP List, the average annual
dividend growth of companies on the DSIP List has historically surpassed the rate of inflation; and we
believe that by holding a diversified portfolio of DSIP stocks, investors may potentially keep ahead of the
rising cost of living.
Please note:
• Not every company has been on the DSIP List over the entire period for which we provide annual
dividend information.
• The initial dividend year for a company may include fewer than four quarters of dividends.
• We have excluded “special” dividends and have adjusted dividends shifted from 2013 into 2012 to
avoid an increase in dividend tax rates so that readers might focus on the underlying trend of base
dividend growth.
• The data is based on the dividend’s record date – the date an investor must own the shares to be
entitled to receive the dividend.
• Dividends are paid at the discretion of a company’s board of directors and are subject to change or
elimination without prior notice.
As with any investment strategy, there are risks associated with investing in DSIP List stocks. There will be
times when dividend paying stocks are out of favor relative to other investment themes. DSIP stocks are
predominantly large-cap in nature; there may be times when small capitalization stocks outperform relative
to large capitalization stocks. Our methodology for choosing DSIP List stocks focuses on high quality
dividend growers. For various reasons, some market sectors will have more companies that meet the DSIP
criteria for inclusion than others. Consequently, there will be times when the market favors sectors not as
heavily represented on the list as others. In general, the defensive nature of the DSIP List tends toward
underperformance in rapidly rising markets, and relative outperformance in down markets, given the
downside cushion often provided by rising dividends.
Please see pages 5-6 of this report for Important Disclosures, Disclaimers and
Analyst Certification
Page 1 of 6
DSIP List – Dividend History
2015
Table 1 – Annual Dividends per Share
CONSUMER DISCRETIONARY
Lowe's Companies (LOW)
Nordstrom Inc (JWN)
McDonald's Corp (MCD)
Polaris Industries (PII)
Target Corp (TGT)
TJX Companies Inc (TJX)
V.F. Corp (VFC)
CONSUMER STAPLES
Brown-Forman Corp (BFB)
Colgate-Palmolive Co (CL)
The Clorox Co (CLX)
Costco Wholesale Corp (COST)
General Mills Inc (GIS)
Kellogg Co (K)
Kimberly-Clark Corp (KMB)
McCormick & Co Inc (MKC)
Pepsico Inc (PEP)
Proctor & Gamble Co (PG)
J.M. Smucker Co (SJM)
SYSCO Corp (SYY)
Wal-Mart Stores Inc (WMT)
ENERGY
ConocoPhillips (COP)
Chevron Corp (CVX)
Phillips 66 (PSX)
Royal Dutch Shell Plc (RDSB)
Exxon Mobil Corp (XOM)
FINANCIALS
AFLAC Inc (AFL)
American Tower Corporation (AMT)
Brown & Brown Inc (BRO)
Chubb Corporation (CB)
Commerce Bancshares Inc (CBSH)
Eaton Vance Corp (EV)
Realty Income Corp (O)
Dividend*
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1-yr
CAGR**
3-yr
5-yr 10-yr
0.10
0.32
0.67
0.56
0.36
0.11
0.28
0.16
0.42
1.00
0.62
0.44
0.14
0.49
0.26
0.54
1.50
0.68
0.52
0.17
0.56
0.33
0.64
1.63
0.76
0.60
0.21
0.58
0.35
0.64
2.05
0.78
0.66
0.24
0.59
0.40
0.76
2.26
0.80
0.84
0.29
0.61
0.50
0.92
2.53
0.90
1.10
0.36
0.65
0.60
1.08
2.87
1.48
1.32
0.44
0.76
0.68
1.20
3.12
1.68
1.58
0.55
0.92
0.82
1.32
3.28
1.92
1.90
0.67
1.11
21%
10%
5%
14%
20%
22%
21%
18%
13%
9%
29%
20%
23%
19%
19%
16%
10%
20%
24%
23%
13%
28%
19%
20%
15%
20%
23%
15%
0.54
0.56
1.12
0.45
0.64
1.06
1.80
0.66
1.01
1.09
1.06
0.60
0.60
0.61
0.63
1.16
0.51
0.69
1.14
1.96
0.74
1.16
1.21
1.11
0.68
0.67
0.67
0.70
1.42
0.57
0.76
1.20
2.12
0.82
1.43
1.36
1.18
0.76
0.88
0.74
0.78
1.72
0.63
0.83
1.30
2.32
0.90
1.65
1.55
1.26
0.88
0.95
0.78
0.86
1.92
0.70
0.90
1.43
2.40
0.98
1.78
1.72
1.37
0.96
1.09
0.81
1.02
2.10
0.80
1.05
1.56
2.64
1.06
1.89
1.89
1.55
1.00
1.21
0.87
1.14
2.30
0.93
1.17
1.67
2.80
1.15
2.03
2.06
1.84
1.04
1.46
0.95
1.22
2.48
1.07
1.27
1.74
2.96
1.27
2.13
2.21
2.00
1.08
1.59
1.06
1.33
2.70
1.21
1.42
1.80
3.24
1.39
2.24
2.37
2.20
1.12
1.88
1.19
1.42
2.90
1.38
1.61
1.90
3.36
1.51
2.53
2.53
2.44
1.16
1.92
12%
7%
7%
14%
13%
6%
4%
9%
13%
7%
11%
4%
2%
11%
8%
8%
14%
11%
4%
6%
10%
8%
7%
10%
4%
10%
9%
11%
9%
14%
12%
6%
7%
9%
7%
8%
12%
4%
12%
10%
11%
10%
16%
11%
7%
8%
10%
12%
10%
10%
8%
14%
1.18
1.75
0.00
1.11
1.14
1.44
2.01
0.00
2.45
1.28
1.64
2.26
0.00
2.81
1.37
1.88
2.53
0.00
3.12
1.55
1.91
2.66
0.00
3.32
1.66
2.15
2.84
0.00
3.36
1.74
2.64
3.09
0.00
3.36
1.85
2.64
3.51
0.45
3.42
2.18
2.70
3.90
1.33
3.56
2.46
2.84
4.21
1.89
3.72
2.70
5%
8%
42%
4%
10%
2%
11%
3%
13%
8%
10%
2%
10%
12%
11%
10%
0.44
0.00
0.17
0.86
0.59
0.34
1.35
0.55
0.00
0.21
1.00
0.63
0.42
1.45
0.80
0.00
0.25
1.16
0.68
0.51
1.57
0.96
0.00
0.29
1.32
0.71
0.61
1.67
1.12
0.00
0.30
1.40
0.72
0.63
1.71
1.14
0.00
0.31
1.48
0.74
0.66
1.72
1.23
0.00
0.33
1.56
0.76
0.73
1.74
1.34
0.90
0.35
1.64
0.79
0.77
1.78
1.42
1.10
0.37
1.76
0.82
0.82
2.18
1.50
1.40
0.41
2.00
0.86
0.91
2.19
6%
27%
11%
14%
5%
11%
1%
7%
8%
9%
4%
8%
8%
6%
6%
7%
4%
8%
5%
15%
11%
10%
5%
13%
6%
Page 2 of 6
DSIP List – Dividend History
2015
Table 1 – Annual Dividends per Share (continued)
HEALTH CARE
1
Abbott Laboratories (ABT)
Baxter International Inc (BAX)
Becton, Dickinson & Co (BDX)
Johnson & Johnson (JNJ)
Novartis AG (NVS)
Owens & Minor Inc (OMI)
Stryker Corporation (SYK)
Teva Pharmaceutical Ind Ltd (TEVA)
INDUSTRIALS
Emerson Electric Co (EMR)
General Dynamics Corp (GD)
W.W. Grainger Inc (GWW)
Illinois Tool Works Inc (ITW)
3M Co (MMM)
Norfolk Southern Corp (NSC)
United Parcel Service Inc (UPS)
United Technologies (UTX)
INFORMATION TECHNOLOGY
Accenture Ltd (ACN)
Analog Devices Inc (ADI)
Automatic Data Processing Inc (ADP)
Cisco Systems, Inc (CSCO)
FactSet Data Services Inc (FDS)
Harris Corp (HRS)
Int'l Business Machines Corp (IBM)
Jack Henry & Associates Inc (JKHY)
Microsoft Corporation (MSFT)
Paychex Inc (PAYX)
QUALCOMM Inc (QCOM)
MATERIALS
Air Products and Chemicals Inc (APD)
AptarGroup Inc (ATR)
Ecolab Inc (ECL)
Praxair Inc (PX)
Dividend*
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1-yr
CAGR**
3-yr
5-yr 10-yr
1.09
0.58
0.76
1.28
0.88
0.35
0.11
0.27
1.16
0.58
0.89
1.46
0.88
0.40
0.22
0.31
1.27
0.72
1.02
1.62
1.10
0.45
0.33
0.39
1.41
0.91
1.19
1.80
1.54
0.53
0.40
0.49
1.56
1.07
1.36
1.93
1.71
0.61
0.25
0.60
1.72
1.18
1.52
2.11
1.95
0.71
0.63
0.74
1.88
1.27
1.68
2.25
2.36
0.80
0.75
0.89
2.01
1.57
1.85
2.40
2.48
0.88
0.90
1.03
0.56
1.92
2.03
2.59
2.43
0.96
1.10
1.27
0.88
2.05
2.24
2.76
2.72
1.00
1.26
1.35
57%
7%
10%
7%
12%
4%
15%
6%
17%
10%
7%
5%
8%
19%
15%
14%
10%
7%
10%
10%
38%
17%
13%
13%
10%
13%
13%
30%
21%
0.85
0.78
0.92
0.61
1.68
0.48
1.32
0.88
0.93
0.89
1.11
0.75
1.84
0.68
1.52
1.02
1.09
1.10
1.34
0.98
1.92
0.96
1.68
1.17
1.23
1.34
1.55
1.18
2.00
1.22
1.80
1.35
1.33
1.49
1.78
1.24
2.04
1.36
1.80
1.54
1.35
1.64
2.08
1.30
2.10
1.40
1.88
1.70
1.44
1.83
2.52
1.40
2.20
1.66
2.08
1.87
1.61
2.00
3.06
1.48
2.36
1.94
2.28
2.03
1.66
2.19
3.59
1.60
2.54
2.04
2.48
2.20
1.76
2.42
4.17
1.81
3.42
2.22
2.68
2.36
6%
11%
16%
13%
35%
9%
8%
8%
7%
10%
18%
9%
16%
10%
9%
8%
6%
10%
19%
8%
11%
10%
8%
9%
8%
13%
18%
13%
9%
20%
9%
13%
0.30
0.38
0.65
0.00
0.20
0.28
0.78
0.18
0.32
0.55
0.34
0.35
0.60
0.79
0.00
0.23
0.38
1.10
0.22
0.37
0.69
0.45
0.42
0.72
0.98
0.00
0.42
0.52
1.50
0.26
0.41
1.02
0.54
0.50
0.78
1.20
0.00
0.66
0.70
1.90
0.30
0.46
1.22
0.62
0.75
0.80
1.33
0.00
0.78
0.84
2.15
0.34
0.52
1.24
0.67
0.83
0.86
1.38
0.00
0.89
0.94
2.50
0.38
0.55
1.24
0.74
1.13
0.97
1.48
0.24
1.04
1.06
2.90
0.42
0.68
1.25
0.84
1.49
1.20
1.62
0.44
1.20
1.40
3.30
0.46
0.83
1.29
0.97
1.74
1.36
1.79
0.68
1.36
1.58
3.70
0.73
0.97
1.36
1.30
1.95
1.48
1.93
0.76
1.52
1.78
4.25
0.88
1.15
1.46
1.61
12%
9%
8%
12%
12%
13%
15%
21%
19%
7%
24%
20%
15%
9%
47%
13%
19%
14%
28%
19%
5%
24%
21%
13%
8%
14%
16%
15%
21%
17%
3%
19%
21%
13%
24%
23%
20%
19%
22%
12%
22%
1.28
0.35
0.36
0.72
1.36
0.42
0.42
1.00
1.52
0.50
0.48
1.20
1.76
0.56
0.53
1.50
1.80
0.60
0.58
1.60
1.96
0.66
0.64
1.80
2.32
0.80
0.73
2.00
2.56
0.88
0.83
2.20
2.84
1.00
0.97
2.40
3.08
1.09
1.16
2.60
8%
9%
20%
8%
10%
11%
17%
9%
11%
13%
15%
10%
11%
17%
13%
16%
Page 3 of 6
DSIP List – Dividend History
2015
Table 1 – Annual Dividends per Share (continued)
TELECOMMUNICATIONS
AT&T Inc (T)
Verizon Communications Inc (VZ)
UTILITIES
MDU Resources Group Inc (MDU)
NextEra Energy Inc (NEE)
National Fuel Gas Co (NFG)
New Jersey Resources Corp (NJR)
Northeast Utilities (NU)
Piedmont Natural Gas Co (PNY)
SCANA Corp (SCG)
South Jersey Industries Inc (SJI)
Southern Company (SO)
Wisconsin Energy Corp (WEC)
Averages:
Consumer Price Index
Dividend*
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1-yr
CAGR**
3-yr
5-yr 10-yr
1.29
1.60
1.33
2.93
1.42
1.65
1.60
1.91
1.64
1.86
1.68
3.76
1.72
1.96
1.76
2.02
1.80
2.08
1.84
2.14
2%
3%
2%
3%
2%
3%
4%
3%
0.49
1.42
1.15
0.92
0.68
0.92
1.56
0.86
1.48
0.44
0.52
1.50
1.19
0.97
0.73
0.96
1.68
0.92
1.54
0.46
0.56
1.64
1.23
1.03
0.78
1.00
1.76
1.01
1.60
0.50
0.60
1.78
1.29
1.15
0.83
1.04
1.84
1.11
1.66
0.54
0.62
1.89
1.33
1.27
0.95
1.08
1.88
1.22
1.73
0.68
0.64
2.00
1.37
1.38
1.03
1.12
1.90
1.36
1.80
0.80
0.66
2.20
1.41
1.46
1.10
1.16
1.94
1.50
1.87
1.04
0.68
2.40
1.45
1.56
1.32
1.20
1.98
1.65
1.94
1.20
0.70
2.64
1.49
1.64
1.47
1.24
2.03
1.80
2.01
1.45
0.72
2.90
1.53
1.74
1.57
1.28
2.10
1.92
2.08
1.56
3%
10%
3%
6%
7%
3%
3%
7%
3%
8%
11%
1.3%
3%
10%
3%
6%
13%
3%
3%
9%
4%
14%
11%
1.4%
3%
9%
3%
6%
11%
3%
2%
9%
4%
18%
11%
1.7%
4%
8%
3%
7%
10%
4%
4%
9%
4%
14%
13%
2.1%
198.1 203.1 211.4 211.4 217.4 220.5 227.1 231.0 234.6 237.0
2
* C alendar year dividends prior to withholding taxes, where applicable.
** C ompound Annual Growth Rate
1
ABT distributed shares of ABBV to shareholders in January 2013. A portion of ABT's dividend was assumed by ABBV.
The total dividends paid by ABT and ABBV on a combined annual basis was $2.16 for Q1 2013.
2
Year/Year for November
Source: FactSet, Wells Fargo Advisors
Page 4 of 6
DSIP List – Dividend History
2015
Disclosures
Disclosure information . . . For important disclosure information, please contact:
Wells Fargo Advisors Attn: Advisory Services (Disclosure Information)
One North Jefferson, St. Louis, MO 63103 Or call phone (888) 410-9203
Please remember to specify the issuer(s) with respect to which you would like to receive
disclosure information.
ANALYST CERTIFICATION: The Analyst who prepared this report hereby certifies that the views
expressed in this report accurately reflect his/her personal views about the subject companies and their
securities. The Analyst also certifies that he/she has not been, is not, and will not be receiving direct or
indirect compensation for expressing the specific recommendation(s) or view(s) in this report.
Disclaimers
The Diversified Stock Income Plan (DSIP) is a preselected, regularly reviewed list of stocks with what
ASG believes are attractive current yields, chosen based on the likelihood of the companies to
consistently raise their annual dividends. Dividends are not guaranteed and are subject to change or
elimination.
Dividends are not guaranteed and are subject to change or elimination.
Diversification does not guarantee a profit or protect against loss.
Investments in the energy sector are subject to the adverse economic events within that industry. A
downturn in the energy sector of the economy, adverse political, legislative or regulatory developments
or other events could have a large impact on a portfolio’s investments in this sector.
Investing in foreign securities presents certain unique risks not associated with domestic investments,
such as currency fluctuation and political and economic changes. This may result in greater share price
volatility. These risks are heightened in emerging markets.
Technology and internet-related stocks, especially of smaller, less-seasoned companies, tend to be more
volatile than the overall market.
There are special risks associated with an investment in real estate, including the possible illiquidity of
the underlying properties, credit risk, interest rate fluctuations and the impact of varied economic
conditions.
You should be aware that investments can fluctuate in price, value and/or income, and you may get back
less than you invested. We recommend that existing shareholders consider their objectives, their risk
tolerance, and the size of their positions relative to their portfolios when evaluating their holdings.
Page 5 of 6
DSIP List – Dividend History
2015
Wells Fargo Advisors research analysts receive no compensation in connection with the firm’s
investment banking business. Analysts may be eligible for annual bonus compensation based on the
overall profitability of the firm, which takes into account revenues derived from all the firm’s business
activities, including its investment banking business.
The Advisory Services Group (“ASG”) of Wells Fargo Advisors works with information received from
various resources including, but not limited to, research from affiliated and unaffiliated research
correspondents as well as other sources. ASG Strategists provide investment advice based on their own
observations and analysis (both fundamental and quantitative) for the clients of Wells Fargo Advisors
and its affiliates. The Advisory Services Group does not assign ratings to or project target prices for any
of the securities mentioned in this report.
Additional information available upon request. Past performance is not a guide to future performance.
The material contained herein has been prepared from sources and data we believe to be reliable but we
make no guarantee as to its accuracy or completeness. This material is published solely for informational
purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or
investment product. Opinions and estimates are as of a certain date and subject to change without
notice.
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Page 6 of 6