When evaluating a company as a potential income investment you look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared to alternative “safe” investments. The advantages dividend stocks have over "safe" investments are potential capital appreciation and dividend growth. Not only are your earnings compounding, but the rate of earnings is growing.Below are several companies giving their shareholders a raise with increased cash dividends:
Invesco Mortgage Capital (IVR) focuses on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans. September 20th the company increased its quarterly dividend 35% to $1.00/share. The dividend is payable on October 27, 2010 to shareholders of record on September 30, 2010. The ex-dividend date is September 28, 2010. The yield based on the new payout is 17.59%.
Arlington Asset Investment (AI) invests in mortgage-related assets. September 21st the company raised its quarterly dividend 71.4% to $0.60/share. The dividend is payable on October 29, 2010 to shareholders of record on September 30, 2010. The ex-dividend date is September 28, 2010. The yield based on the new payout is 10.08%.
ConAgra Foods (CAG) is one of the largest U.S. packaged food processors. September 21st the company increased its quarterly dividend 15% to $0.23/share. The yield based on the new payout is 4.27%.
Microsoft (MSFT) is the world's largest software company. It develops PC software, including the Windows operating system and the Office application suite. September 21st the company raised its quarterly dividend 23% to $0.16/share. The yield based on the new payout is 2.60%.
The First of Long Island Corp. (FLIC) provides financial services through its wholly-owned subsidiary, The First National Bank of Long Island. September 22nd the company increased its quarterly dividend 10% to $0.22/share. The dividend is payable on October 15, 2010 to shareholders of record on October 5, 2010. The ex-dividend date is October 1, 2010. The yield based on the new payout is 3.55%.
McDonald's (MCD) is the largest fast-food restaurant company in the world, with about 32,500 restaurants in 117 countries. September 23rd the company raised its quarterly dividend 11% to $0.61/share. The dividend is payable on December 15, 2010 to shareholders of record at the close of business on December 1, 2010. The ex-dividend date is November 29, 2010. MCD is a Dividend Aristocrat and has raised its dividend for 34 consecutive years. The yield based on the new payout is 3.25%.
Covidien (COV) develops, manufactures and distributes medical devices and supplies, diagnostic imaging agents, pharmaceuticals and other health care products used in both clinical and home settings. September 23rd the company increased it quarterly dividend by 11% to $0.20/share.The dividend is payable on Nov. 8 to shareholders of record on Oct. 4. The ex-dividend date is Sept. 30. The yield based on the new payout is 2.04%.
Lockheed Martin (LMT) is the world's largest military weapons manufacturer and is also a significant supplier to NASA and other non-defense government agencies. September 23rd the company raised its quarterly dividend 19% to $0.75/share. The dividend is payable on Dec. 31 to shareholders of record on Dec. 1. The ex-dividend date is Nov. 29. The yield based on the new payout is 4.17%.
Sanderson Farms (SAFM) in an integrated poultry processing company that produces, processes, markets and distributes fresh and frozen, processed, and prepared chicken products in the United States. September 23rd the company increased its quarterly dividend 13.3% to $0.17/share. The dividend is payable October 19, 2010, to stockholders of record on October 5, 2010. The ex-dividend date is October 1, 2010. The yield based on the new payout is 1.64%.
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 MCD. See a list of all my income holdings here.
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Tags: [AI] [CAG] [COV] [FLIC] [IVR] [LMT] [MCD] [MSFT] [SAFM]
