Dividend growth investing in its classic form focuses on identifying solid companies with a long record of growing their dividends each year; and an expectation that they will continue to do so into the future. The focus is not solely on yield but a combination of yield and dividend growth. Often it is the lower yield, higher growth, security that will provide the best return over time.Here are several stocks living up to shareholders' expectations by raising their cash dividends:
Fastenal Company (FAST) distributes fasteners and other industrial and construction supplies through 2,400 stores throughout the U.S. and in a few foreign countries. July 12th the company increased its semi-annual dividend to $0.42/share. The dividend is payable September 3, 2010 to shareholders of record at the close of business on August 20, 2010. FAST is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 1.62%.
Genesis Energy (GEL) is a limited partnership that operates crude oil common carrier pipelines, is an independent gatherer and marketer of crude oil and operates a wholesale CO2 business. July 13th the partnership raised its quarterly distribution 8.7% over Q2/2009 to $0.375/unit. The distribution will be paid on August 13, 2010, to Common Unitholders of record at the close of business on August 3, 2010. The ex-distribution date is July 30, 2010. The yield based on the new payout is 7.39%.
Enterprise Products (EPD) is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation, and terminalling. July 13th the partnership increases its quarterly distribution 5.5% to $0.575/unit. The quarterly distribution will be paid on Thursday, August 5, 2010, to unitholders of record as of the close of business on Friday, July 30, 2010. The ex-distribution date is July 28, 2010. EPD is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 6.21%.
Duncan Energy Partners (DEP) transports, markets, and stores natural gas, as well as in transporting and storing natural gas liquids (NGLs) and petrochemicals in the U.S. July 13th the partnership raised its quarterly distribution 3.4% to $0.45/unit. The distribution will be paid Friday, August 6, 2010, to unitholders of record at the close of business on Friday, July 30, 2010. The ex-distribution date is July 28, 2010. The yield based on the new payout is 6.31%.
Cummins (CMI) i a leading manufacturer of truck engines also makes stand-by power equipment and industrial filters. July 13th the company increased its quarterly dividend 50% to $0.2625/share. The dividend is payable on Sept. 1 to shareholders of record on August 23. The ex-dividend date is August 21. The yield based on the new payout is 1.42%.
Healthcare Services Group (HCSG) provides housekeeping, laundry, linen, facility maintenance and food services to hospitals and other health care facilities. July 13th the company increases its quarterly dividend 4.5% to $0.23/share. The dividend is payable on August 6, 2010 to shareholders of record at the close of business July 23, 2010. The ex-dividend date is July 21, 2010. The yield based on the new payout is 4.96%.
National Semi (NSM) is a leading manufacturer of a broad line of semiconductors, including analog, digital and mixed-signal integrated circuits. July 14th the company raised its quarterly dividend 25% to $0.10/share. The dividend will be paid on Oct. 12, 2010 to shareholders of record at the close of business on Sept. 20, 2010. The ex-dividend date is September 16, 2010. The yield based on the new payout is 2.79%.
Walgreen (WAG) is the largest U.S. retail drug chain and operates more than 7,500 drug stores throughout the U.S. and Puerto Rico. July 14th the company increased its quarterly dividend 27% to $0.175/share. The dividend is payable Sept. 11, 2010, to shareholders of record Aug. 19, 2010. The ex-dividend date is August 15, 2010. WAG is a Dividend Aristocrat and has raised its dividend for 35 consecutive years. The yield based on the new payout is 2.38%.
ONEOK Partners (OKS) is a leading transporter of natural gas and natural gas liquids (NGLs) in the Mid-Continent area to market centers in the U.S. July 14th the partnership raised its quarterly distribution to $1.12/unit. The distribution is payable August 13, 2010, to unitholders of record as of July 30, 2010. The ex-distribution date is July 28, 2010. The yield based on the new payout is 6.55%.
National Retail Properties (NNN) invests in high-quality, freestanding retail properties subject to long-term net leases with major retail tenants. July 15th the REIT raised its quarterly dividend 1.3% to $0.38/share. The dividend is payable August 16, 2010 to common shareholders of record on July 30, 2010. The ex-dividend date is July 28, 2010. NNN is a Dividend Achiever and has raised its dividend for 19 consecutive years. The yield based on the new payout is 6.67%.
PPG Industries (PPG) is a leading manufacturer of coatings and resins, flat and fiber glass, and industrial and specialty chemicals. July 15th the company increased its quarterly dividend 1.9% to $0.55/share. The dividend is payable September 10, 2010, to shareholders of record August 10, 2010. The ex-dividend date is August 6, 2010. PPG is a Dividend Achiever and has raised its dividend for 37 consecutive years. The yield based on the new payout is 3.40%.
ONEOK (OKE) is an integrated natural gas company also has an energy marketing and trading business. July 15th the company raised its quarterly dividend 5% to $0.46/share. The dividend is payable August 13, 2010, to shareholders of record at the close of business July 30, 2010. The ex-dividend date is July 28, 2010. The yield based on the new payout is 4.00%.
Omega Healthcare (OHI) invests in and provides financing to the long-term care industry. Its portfolio includes health care facilities in 27 states. July 15th the REIT increased its quarterly dividend 12.5% to $0.36/share.The dividend is to be paid August 16, 2010 to common stockholders of record on July 30, 2010. The ex-dividend date is July 28, 2010. The yield based on the new payout is 6.90%.
Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.
Full Disclosure: Long NNN. See a list of all my income holdings here.
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