Overall investors have mainly been focusing on dividend cuts in 2009. I believe that most stocks that pay out dividends are cyclical in nature. Thus, they do not have the specific competitive advantages, which provide for a long and sustainable annual dividend increases over time.

The starting list for any dividend growth investor, who is looking for companies, which have a proven track record of consistently raising their dividends for 25 years, is the S&P Dividend Aristocrats Index. There were 52 companies in the index at the end of 2008. So far this year the following dividend aristocrats have increased their dividends:

In January Bemis (BMS) increased its dividend to 0.90 from 0.88, which marked the 26 consecutive increase for the manufacturer of flexible packaging products and pressure sensitive materials.

Consolidated Edison (ED) increased its dividends by 1%, which marked the 35th annual consecutive increase for this provider of electric, gas, and steam utility services. The stock currently yields 5.80%. (analysis)

Family Dollar Stores (FDO) increased its dividends by 8%, which marked the 33rd annual consecutive increase for this operator of of self-service retail discount stores. The stock currently yields 1.90%. (analysis)

McGraw-Hill (MHP) increased its dividends by 2.30%, which marked the 36th annual consecutive increase for this provider of information services and products. The stock currently yields 4.10%. (analysis)

In February 3M (MMM) increased its dividends by 2%, which marked the 51st consecutive increase for this diversified technology company. The stock currently yields 4.30%.