7 Companies Compounding Shareholder's Wealth With Higher Dividends

Compound interest is what occurs when interest previously earned is added to the principle and is considered when calculating future interest – i.e. earning interest on interest. So, what’s more powerful than compound interest? Compound dividends! Compound dividends are like compound interest on steroids – you are not only earning on reinvested dividends, but the dividend rate is increasing.

Here are several companies compounding their shareholder's wealth with increased cash dividends:

Walmart (WMT) recently increased its quarterly dividend 1.9% to $0.53 per share. The dividend is payable April 1, 2019 to stockholders of record on March 15, 2019, with an ex-dividend date of March 14, 2019. The yield based on the new payout is 2.1%.

Coca-Cola (KO) recently increased its quarterly dividend 2.6% to $0.40 per share. The dividend is payable April 1, 2019 to stockholders of record on March 15, 2019, with an ex-dividend date of March 14, 2019. The yield based on the new payout is 3.5%.

GlaxoSmithKline (GSK) recently increased its quarterly dividend 21% to $0.23 per share. The dividend is payable Apr. 11, 2019 to stockholders of record on Feb. 22, 2019, with an ex-dividend date of Feb. 21, 2019. The yield based on the new payout is 5.8%.

Devon Energy (DVN) recently increased its quarterly dividend 12% to $0.09 per share. The dividend is payable Jun. 28, 2019 to stockholders of record on Jun. 14, 2019, with an ex-dividend date of Jun 13, 2019. The yield based on the new payout is 1.3%.

Royal Bank of Canada (RY) recently increased its quarterly dividend 4.1% to C$1.02 per share. The dividend is payable May 24, 2019 to stockholders of record on Apr. 25, 2019, with an ex-dividend date of Apr. 24, 2019. The yield based on the new payout is 4.0%.

Waste Management (WM) recently increased its quarterly dividend 10% to $0.5125 per share. The dividend is payable Mar. 22, 2019 to stockholders of record on Mar. 15, 2019, with an ex-dividend date of Mar. 14, 2019. The yield based on the new payout is 3.7%.

Digital Realty Trust (DLR) recently increased its quarterly dividend 6.9% to $1.08 per share. The dividend is payable Mar. 29, 2019 to stockholders of record on Mar. 15, 2019, with an ex-dividend date of Mar. 14, 2019. The yield based on the new payout is 3.7%.

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 WMT, KO, DLR,

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Tags: WMT, KO, GSK, DVN, RY, WM, DLR,
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