7 Stocks Building A Higher Yield On Cost With Increased Dividends

Most casual income investors focus on current yield, which is important. However, if your objective as an income investor is to build a portfolio of securities with increasing income, then Yield on Cost is an excellent metric to measure your progress. Yield on Cost is simply the annual dividend rate times number of shares owned divided by what you paid for the investment (basis). As companies increase their dividend, your yield-on-cost goes up.

Working to increase their shareholders Yield on Cost, these companies recently announced higher cash dividend payments:

Apple (AAPL) recently increased its quarterly dividend 5.5% to $0.77 per share. The dividend is payable May 16, 2019 to stockholders of record on May 13, 2019, with an ex-dividend date of May 10, 2019. The yield based on the new payout is 1.5%.

IBM (IBM) recently increased its quarterly dividend 3.2% to $1.62 per share. The dividend is payable Jun. 10, 2019 to stockholders of record on May 10, 2019, with an ex-dividend date of May 9, 2019. The yield based on the new payout is 4.7%.

BP Midstream Partners (BPMP) recently increased its quarterly dividend 3.7% to $0.3126 per share. The dividend is payable May 15, 2019 to stockholders of record on May 1, 2019, with an ex-dividend date of Apr. 30, 2019. The yield based on the new payout is 8.3%.

PepsiCo (PEP) recently increased its quarterly dividend 3% to $0.955 per share. The dividend is payable Jun. 28, 2019 to stockholders of record on Jul. 17, 2019, with an ex-dividend date of Jul. 16, 2019. The yield based on the new payout is 3.0%.

EOG Resources (EOG) recently increased its quarterly dividend 31% to $0.2875 per share. The dividend is payable Jul. 31, 2019 to stockholders of record on Jul. 17, 2019, with an ex-dividend date of Jul. 16, 2019. The yield based on the new payout is 1.3%.

MGM Resorts (MGM) recently increased its quarterly dividend 8.3% to $0.13 per share. The dividend is payable Jun. 14, 2019 to stockholders of record on Jun. 10, 2019, with an ex-dividend date of Jun. 7, 2019. The yield based on the new payout is 1.8%.

Paychex (PAYX) recently increased its quarterly dividend 11% to $0.62 per share. The dividend is payable May 30, 2019 to stockholders of record on May 15, 2019, with an ex-dividend date of May 14, 2019. The yield based on the new payout is 3.0%.

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 AAPL, PEP,

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Tags: AAPL, IBM, BPMP, PEP, EOG, MGM, PAYX,
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