Valspar

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Paint, stain and coatings firm Valspar ( VAL) isn't much of a core income holding right now, but it was a much higher yielder not long ago. That's because shares have nearly doubled over the course of the last 12 months, giving management a very difficult benchmark to keep up with when they announce quarterly payouts.

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Valspar's rally has been predicated on fundamental performance, though, so I think that a hike to the firm's quarterly 20-cent dividend is likely in the near-term, especially given a track record of 34 straight annual dividend hikes.

Valspar's products range from house paint sold to consumers to industrial coatings used to seal food packages. The firm's paint is one of the larger consumer brands in the U.S., with distribution through Lowe's ( LOW). While the hefty customer concentration of Lowe's does create some risks for VAL, they're more than offset by the increasing geographic footprint at zero risk that Lowe's provides -- it spares the firm from having to open its own retail stores, a capital-intense proposition. Overseas, Valspar has taken on a growth-by-acquisition approach that's recently included the purchase of China's third-biggest paint brand.

Like the other names that made this list, Valspar's cash flows more than cover its current dividends and its balance sheet obligations, leaving plenty of room for a bigger payout in the near-term.

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