7 Stocks Building Superior Long-Term Returns With Increased Dividends

Ned Davis Research examined the relative performances of stocks between 1972 and 2006 and established a link between rising dividends and superior long-term returns. The study found S&P 500 stocks that consistently increased their dividends returned 10.4% total return (dividends + share price appreciation), while those that did not increase their dividends returned only 8.2%. The 2.2% advantage of the dividend raisers would equate to an additional $1,802 per $100 invested in 1972.

Below are several companies looking to follow the the path of superior long-term returns by increasing their cash dividends:

Target (TGT) recently increased its quarterly dividend 3.1% to $0.64 per share. The dividend is payable Sep. 10, 2019 to stockholders of record on Aug. 21, 2019, with an ex-dividend date of Aug. 20, 2019. The yield based on the new payout is 3.0%.

Realty Income (O) recently increased its monthly dividend 0.2% to $0.2265 per share. The dividend is payable Jul. 15, 2019 to stockholders of record on Jul. 1, 2019, with an ex-dividend date of Jun. 28, 2019. The yield based on the new payout is 3.8%.

W. P. Carey (WPC) recently increased its quarterly dividend 0.2% to $1.034 per share. The dividend is payable Jul. 15, 2019 to stockholders of record on Jun. 28, 2019, with an ex-dividend date of Jun. 27, 2019. The yield based on the new payout is 4.9%.

Innovative Industrial Properties (IIPR) recently increased its quarterly dividend 33% to $0.60 per share. The dividend is payable Jul. 15, 2019 to stockholders of record on Jun. 28, 2019, with an ex-dividend date of Jun. 27, 2019. The yield based on the new payout is 2.4%.

H&R Block (HRB) recently increased its quarterly dividend 4% to $0.26 per share. The dividend is payable Jul. 1, 2019 to stockholders of record on Jun. 21, 2019, with an ex-dividend date of Jun. 20, 2019. The yield based on the new payout is 3.9%.

Exantas Capital (XAN) recently increased its quarterly dividend 12% to $0.225 per share. The dividend is payable Jul. 26, 2019 to stockholders of record on Jun. 28, 2019, with an ex-dividend date of Jun. 27, 2019. The yield based on the new payout is 8.11%.

Capstead Mortgage (CMO) recently increased its quarterly dividend 50% to $0.12 per share. The dividend is payable Jul. 19, 2019 to stockholders of record on Jun. 28, 2019, with an ex-dividend date of Jun. 27, 2019. The yield based on the new payout is 5.9%.

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 O,

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Tags: TGT, O, WPC, IIPR, HRB, XAN, CMO,
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