AcmeFool:

You might want to check your analysis -- the stream of numbers is correct, but you might notice that there was NO dividend payment last June.   There were only 2 dividend payments in 2007 -- March and September.  If they wanted to keep things kosher (for year-to-year comparison), they would have made another March payment.  But they waited until June.

Why did they wait?  I believe it was so that they could make it look like the dividend increased.  But 63.1 cents/share over a 9-month period is well below the 59.7 cents/share over the 6 month period ending Sep-07.  And it is WAY below the 56.5 cents/share for the 3-month period ending June-06. 

This means what you referred to as a 12% increase year-over-year was really closer to a 63% DECREASE over 2 years.

Here's the payout history from the iShares web site: http://tinyurl.com/5329ja

iShares shows a July 5, 2007 payment of 0.58298/share.
I checked my brokerage account and found that I received dividend payments from DVY in  March, early July, early Oct 2007, and again on 1.3.08.

 Greg