Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confuse a buy-and-hold strategy with day-trading with a longer duration. A true implementation of buy-and-hold includes a focus on blue-chip stocks with a sustainable advantage, along with a reasonable asset allocation framework. One sign of a blue-chip stock is a long string of dividend increases.Below are several companies that have recently raised the bar by increasing their cash dividends:
Lorillard (LO) is the third largest U.S. tobacco company and the leading manufacturer and marketer of menthol cigarettes. August 20th the company increased its quarterly dividend 12.5% to $1.125/share. The dividend is payable on September 10, 2010 to stockholders of record as of September 1, 2010. The ex-dividend date is August 30, 2010. The yield based on the new payout is 5.97%.
Northrim BanCorp (NRIM) is one of the largest commercial banks in Alaska, with operations primarily in Anchorage and Fairbanks. August 20th the company raised its quarterly dividend 20% to $0.12/share. The dividend is payable September 17, 2010, to shareholders of record at the close of business September 9, 2010. The yield based on the new payout is 2.93%.
Badger Meter (BMI) is a leading manufacturer and marketer of products incorporating liquid flow measurement and control technologies developed both internally and with other technology companies. August 20th the company increased its quarterly dividend $16.6% to $0.14/share. The dividend is payable on Sept. 15 to shareholders of record on Aug. 31. The ex-dividend date is Aug. 27. BMI is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 1.50%.
MGE Energy (MGEE) generates and distributes electricity and distributes natural gas in Wisconsin. August 20th the company raised its quarterly dividend to $0.3751/share. The dividend is payable on Sept. 15 to shareholders of record on Sept. 1. The ex-dividend date is Aug. 30. MGEE is a Dividend Achiever and has raised its dividend for 35 consecutive years. The yield based on the new payout is 4.14%.
G&K Services (GKSR) provides branded identity apparel and facility services programs. August 23rd the company increased its quarterly dividend 27% to $0.095/share. The dividend is payable on September 30, 2010 to shareholders of record at the close of business on September 16, 2010. The ex-dividend date is September 1. The yield based on the new payout is 1.93%.
Westlake Chemical (WLK) is an integrated manufacturer of petrochemicals, polymers and fabricated vinyl products. August 23rd the company raised its quarterly 10% dividend to $0.0635/share. The dividend is payable on September 16, 2010, to stockholders of record on September 1, 2010. The ex-dividend date is August 30. The yield based on the new payout is 1.02%.
Todd Shipyards (TOD) repairs, overhauls, converts, and constructs commercial and military ships in the Pacific Northwest. August 23rd the company increased its quarterly dividend to $0.10/share. This dividend is payable December 23, 2010, to shareholders of record as of December 8, 2010. The yield based on the new payout is 1.99%.
Bob Evans Farms (BOBE) owns and operates 571 Bob Evans Restaurants & 132 Mimi's Cafes. It also produces and distributes pork sausage, complementary home-style convenience food items. August 25th the company raised its quarterly dividend 11.1% to $0.20/share. The dividend is payable on September 21 to stockholders of record at the close of business on September 7, 2010. The ex-dividend date is September 3, 2010. The yield based on the new payout is 3.14%.
Ship Finance (SFL) owns an international fleet of crude oil tankers, which are leased under long-term, fixed-price charters. August 26th the company increased its quarterly dividend to $0.35/share. The yield based on the new payout is 7.87%.
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 securities. See a list of all my income holdings here.
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