Are you looking for companies that can sustain and grow their dividend? In making that determination, a company’s Statement of Earnings is one of the last places you should look. Cash is king for the dividend investor and the Statement of Cash Flows is where astute investors begin when they want to understand the viability of a company. To succeed as a dividend investor, you must find companies that can sustain and grow dividends by focusing on their ability to generate cash. You can fake earnings, but you can’t fake cash.Below are several stocks using real cash to raise their dividends:
A. O. Smith (AOS) produces electric motors and residential and commercial water heaters. July 23rd the company increased its quarterly dividend 8% to $0.21/share. The dividend is payable on August 16, 2010, to shareholders of record July 30, 2010. The ex-dividend date is July 28, 2010. Yield on the dividend is 1.6%. AOS is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 1.50%.
General Electric (GE) sells products ranging from jet engines and gas turbines to consumer appliances, railroad locomotives and medical equipment. It also owns NBC Universal, and is a leading provider of consumer and commercial financing. July 23rd the company raised its quarterly aividend 20% to $0.12/share. The dividend is payable October 25, 2010 to shareowners of record at the close of business on September 20, 2010. The ex-dividend date is September 16, 2010. The yield based on the new payout is 2.97%.
Enbridge Energy Partners (EEP) owns the U.S. portion of the world's longest crude oil pipeline. A natural gas transportation business was acquired in late 2001. July 23rd the partnership increased its quarterly distribution 2.5% to 1.0275/unit. The distribution is payable August 13, 2010 to unitholders of record on August 5, 2010. The ex-dividend date is August 3, 2010. The yield based on the new payout is 6.91%.
Boardwalk Pipeline (BWP) engages in the interstate transportation and storage of natural gas. July 26th the company raised its quarterly distribution 1% to $0.51/unit. The distribution is payable on August 9, 2010, to unitholders of record as of August 2, 2010. The ex-dividend date is July 29, 2010. The yield based on the new payout is 6.37%.
Alliance Holdings GP (AHGP) produces and markets coal primarily to utilities and industrial users in the U.S. It offers a range of steam coal with varying sulfur and heat contents. July 26th the company increases its quarterly distribution to $0.4825/unit. The distribution is payable on August 19, 2010, to AHGP’s unitholders of record as of the close of trading on August 12, 2010. The ex-distribution date is August 10, 2010. The yield based on the new payout is 5.32%.
Crane Co. (CR) is a diversified manufacturer and distributor of engineered products for the fluid handling, aerospace, construction and automatic merchandising industries. July 26th the company raised its quarterly dividend 15% to $0.23/share. The dividend is payable on September 10, 2010 to shareholders of record as of the close of business on August 31, 2010. The ex-dividend date is August 27, 2010. The yield based on the new payout is 2.57%.
International Flavors & Fragrances (IFF) is a leading producer of flavors and fragrances, used in a wide variety of consumer goods, derives over 70% of annual sales from operations outside the U.S. July 27th the company increased its quarterly dividend 8% to $0.27/share. The dividend is payable on October 6, 2010 to all IFF shareholders of record as of September 22, 2010. The ex-dividend date is September 20, 2010. The yield based on the new payout is 2.36%.
Norfolk Southern (NSC) operates 21,200 route miles serving 22 eastern states, the District of Columbia, and Ontario, Canada. July 27th the company raised its quarterly dividend 5.9% to $0.36/share. The dividend is payable on Aug. 6 to shareholders of record on Sept. 10. The ex-dividend date is Aug. 4. The yield based on the new payout is 2.55%.
Community Trust Bancorp (CTBI) provides commercial banking services in Kentucky andWest Virginia; and a trust company. July 27th the company increased its quarterly dividend 1.7% to $0.305/share. The dividend is payable on October 1, 2010, to shareholders of record on September 15, 2010. The ex-dividend date is September 13, 2010. CTBI is a Dividend Achiever and has raised its dividend for 30 consecutive years. The yield based on the new payout is 4.46%.
Williams Partners (WPZ) engages in gathering, transporting, processing, and treating natural gas, as well as fractionating and storing natural gas liquids. July 27th the partnership increased its quarterly distribution 2% to $0.6725/unit. The distribution is is payable on August 13, 2010, to unitholders of record at the close of business on August 6. The ex-dividend date is August 4, 2010. The yield based on the new payout is 5.82%.
Sealed Air Corporation (SEE) is a leading global manufacturer of a wide range of food and protective packaging materials and systems. July 27th the company raised its quarterly dividend 8% to $0.13/share. The yield based on the new payout is 2.33%.
PF Chang's (PFCB) owns and operates the P.F. Chang's China Bistro and PeiWei Asian Diner restaurant chains. July 28th the company increased its quarterly dividend to $0.25/share. The yield based on the new payout is 2.26%.
Newmont Mining (NEM) is one of the world's largest gold producers, and is also engaged in the production of copper. July 28th the company raised its quarterly dividend 50% to $0.15/share. The dividend is payable on September 29, 2010 to holders of record at the close of business on September 8, 2010. The ex-dividend date is September 6, 2010. The yield based on the new payout is 1.08%.
Hawkins (HWKN) formulates, blends and distributes bulk and specialty chemicals in the U.S. It operates in three segments: Water Treatment, Industrial, and Pharmaceutical. July 28th the company increased its semi-annual dividend 7.1% to $0.30/share. The dividend is payable on October 8 to shareholders of record on September 24. The ex-dividend date is September 22. The yield based on the new payout is 2.00%.
Barrick Gold (ABX) is the world's largest gold company in terms of both production and reserves. July 29th the company raised its quarterly dividend 20% to $0.12/share. Barrick expects to move from a semi-annual dividend to a quarterly dividend going forward. The quarterly dividend is payable on September 15, 2010 to shareholders of record as of the close of business on August 31, 2010. The ex-dividend date is August 27. The yield based on the new payout is 1.20%.
Republic Services (RSG) became the second largest U.S. provider of solid waste services in North America when it acquired AlliedWaste Industries in December 2008. July 29th the company increased its quarterly dividend 5% to $0.20/share. The dividend is payable on October 15, 2010 to shareholders of record on October 1, 2010. The yield based on the new payout is 2.50%.
Maxim Integrated (MXIM) designs, develops and manufactures linear and mixed-signal integrated circuits used mainly in signal processing applications. July 29th the company raised its quarterly dividend to $0.21/share. The yield based on the new payout is 4.67%.
Health Care REIT (HCN) invests in health care facilities, including senior housing, specialty care, and medical office buildings. July 29th the REIT increased its quarterly dividend 1.5% to $0.69/share. The dividend is payable August 20, 2010, to stockholders of record on August 9, 2010. The ex-dividend date is August 4, 2010. The yield based on the new payout is 6.10%.
DTE Energy (DTE) is involved in the development and management of energy-related businesses and services nationwide. July 29th the company raised its quarterly dividend to $0.56/share. The yield based on the new payout is 4.65%.
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: No position in the aforementioned stocks. See a list of all my income holdings here.
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