1.) An abrupt or permanent shift in a company’s business model as a result of business conditions.
2.) A dividend yield that is higher than average and/or higher than others in the industry.
3.) Diminishing cash available to pay dividends.
Ultimately, the ability of a company to pay its dividend is determined by its cash position – both cash on its balance sheet and its ability to generate cash flow. Below are several companies that are NOT cutting their dividends, but instead raising them:
AT&T Inc. (T) provides telecommunications and digital entertainment services. Recently the company increased its quarterly dividend 2% to $0.50 per share. The dividend is payable February 1, 2018 to stockholders of record on January 10, 2018, with an ex-dividend date of January 9, 2018. The yield based on the new payout is 5.2%.
The Boeing Company (BA) designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Recently the company increased its quarterly dividend 20% to $1.71 per share. The dividend is payable March 2, 2018 to stockholders of record on February 9, 2018, with an ex-dividend date of February 8, 2018. The yield based on the new payout is 2.4%.
Amgen Inc. (AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. Recently the company increased its quarterly dividend 15% to $1.32 per share. The dividend is payable March 8, 2018 to stockholders of record on February 15, 2018, with an ex-dividend date of February 14, 201x. The yield based on the new payout is 3.0%.
Abbott Laboratories (ABT) manufactures and sells health care products worldwide. Recently the company increased its quarterly dividend 5.7% to $0.28 per share. The dividend is payable February 15, 2018 to stockholders of record on February 12, 2018, with an ex-dividend date of February 11, 2018. The yield based on the new payout is 2.0%.
Eli Lilly and Company (LLY) discovers, develops, manufactures, and markets pharmaceutical products worldwide. Recently the company increased its quarterly dividend 8% to $0.5325 per share. The dividend is payable March 9, 2018 to stockholders of record on February 15, 2018, with an ex-dividend date of February 14, 2018. The yield based on the new payout is 2.6%.
Dominion Energy, Inc. (D) produces and transports energy in the United States. The company’s Dominion Virginia Power segment engages in the regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. Recently the company increased its quarterly dividend 10% to $0.835 per share. Subject to board declaration in Jan., the first quarterly dividend of $0.835/share ($0.77 prior) will be payable in March 2018. The yield based on the new payout is 3.9%.
Ventas, Inc. (VTR) is a publicly owned real estate investment trust that engages in investment, management, financing, and leasing of properties in the healthcare industry. Recently the company increased its quarterly dividend 1.9% to $0.79 per share. The dividend is payable January 12, 2018 to stockholders of record on January 2, 2018, with an ex-dividend date of December 29, 201x. The yield based on the new payout is 5.0%.
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 T in my Dividend Growth Stocks Portfolio. See a list of all my Dividend Growth Portfolio holdings here.
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