6 Stocks Beating Inflation With Higher Dividends

Investing in dividend growth stocks is not about buying a current high yield, but instead building a high yield-on-cost over time. One of the criticisms I sometimes is, "That low yield isn't even covering inflation." This is a very valid concern, if true. The way many low yielding stocks yields compensate for inflation is by growing their dividend well in excess of the inflation rate.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:

Becton, Dickinson (BDX) recently increased its quarterly dividend 2.7% to $0.77 per share. The dividend is payable Dec. 31, 2018 to stockholders of record on Dec. 10, 2018, with an ex-dividend date of Dec. 7, 2018. The yield based on the new payout is 1.3%.

Hormel Foods (HRL) recently increased its quarterly dividend 12% to $0.21 per share. The dividend is payable Feb. 15, 2019 to stockholders of record on Jan. 14, 2019, with an ex-dividend date of Jan. 14, 2019. The yield based on the new payout is 1.9%.

South Jersey (SJI) recently increased its quarterly dividend 2.7% to $0.29 per share. The dividend is payable Dec. 27, 2018 to stockholders of record on Dec. 10, 2018, with an ex-dividend date of Dec. 7, 2018. The yield based on the new payout is 3.6%.

York Water (YORW) recently increased its quarterly dividend 4% to $0.1733 per share. The dividend is payable Jan. 15, 2019 to stockholders of record on Dec. 31, 2018, with an ex-dividend date of Dec. 28, 2018. The yield based on the new payout is 2.1%.

Valvoline (VVV) recently increased its quarterly dividend 42% to $0.106 per share. The dividend is payable Dec. 17, 2018 to stockholders of record on Nov. 30, 2018, with an ex-dividend date of Nov. 29, 2018. The yield based on the new payout is 2.1%.

Tri-Continental (TY) recently increased its quarterly dividend 5.5% to $0.2515 per share. The dividend is payable Dec. 27, 2018 to stockholders of record on Dec. 27, 2018, with an ex-dividend date of Dec. 19, 2018. The yield based on the new payout is 4.0%.

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.

Full Disclosure: Long HRL.

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Tags: BDX, HRL, SJI, YORW, VVV, TY,
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