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Monday, November 6, 2017

7 Dividend Stocks Building Shareholder Returns With Higher Dividends

It's human nature for new income investors to focus on yield. Many eventually learn that above average yields often carry an above average risk of a dividend cut, loss of invested capital or both. People involved in extreme sports/hobbies, such as base jumping, hang gliding and shark diving, do things to minimize risk and protect themselves. In much the same way those investing in dividend stocks, can do certain things to increase their chance of success. One method is to focus on stocks the consistently increase their dividends.

Below are several stocks building shareholder returns with higher dividends:

Sabra Health Care REIT, Inc. (SBRA) is a real estate investment trust that owns and invests in real estate serving the healthcare industry. Recently the company increased its quarterly dividend 4.7% to $0.45 per share. The dividend is payable November 30, 2017 to stockholders of record on November 15, 2017, with an ex-dividend date of November 14, 2017. The yield based on the new payout is 8.9%.

Cognex Corporation (CGNX) is a provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. Recently the company increased its quarterly dividend 5.9% to $0.09 per share. The dividend is payable December 1, 2017 to stockholders of record on November 17, 2017, with an ex-dividend date of November 16, 2017. The yield based on the new payout is 0.3%.

The Estee Lauder Companies Inc. (EL) manufactures and markets skin care, makeup, fragrance and hair care products. Recently the company increased its quarterly dividend 12% to $0.38 per share. The dividend is payable December 15, 2017 to stockholders of record on November 30, 2017, with an ex-dividend date of November 29, 2017. The yield based on the new payout is 1.4%.

Spectra Energy Partners, L.P. (SEP) through its subsidiaries and equity affiliates, is engaged in the transmission, storage and gathering of natural gas, the transportation and storage of crude oil, and the transportation of natural gas liquids. Recently the partnership increased its quarterly distribution 1.8% to $0.7263 per unit. The distribution is payable November 29, 2017 to unitholders of record on November 13, 2017, with an ex-dividend date of November 10, 2017. The yield based on the new payout is 6.7%.

Rockwell Automation, Inc. (ROK) is a provider of industrial automation power, control and information solutions for manufacturers. Recently the company increased its quarterly dividend 9.9% to $0.835 per share. The dividend is payable December 11, 2017 to stockholders of record on November 13, 2017, with an ex-dividend date of November 10, 2017. The yield based on the new payout is 1.7%.

Macquarie Infrastructure Corporation (MIC) owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. Recently the company increased its quarterly dividend 2.9% to $1.42 per share. The dividend is payable November 16, 2017 to stockholders of record on November 13, 2017, with an ex-dividend date of November 10, 2017. The yield based on the new payout is 8.1%.

AllianceBernstein Holding L.P. (AB) is engaged in providing research, investment management and related services to a range of clients through its three buy-side distribution channels. Recently the company increased its quarterly dividend 4.1% to $0.51 per share. The dividend is payable November 16, 2017 to stockholders of record on November 6, 2017, with an ex-dividend date of November 3, 2017. The yield based on the new payout is 8.1%.

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 Dividend Growth Portfolio holdings here.

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Tags: SBRA, CGNX, EL, SEP, ROK, MIC, AB,