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.
Starbucks (SBUX) recently increased its quarterly dividend 14% to $0.41 per share. The dividend is payable Nov. 29, 2019 to stockholders of record on Nov. 13, 2019, with an ex-dividend date of Nov. 12, 2019. The yield based on the new payout is 2.0%.
AbbVie (ABBV) recently increased its quarterly dividend 10% to $1.18 per share. The dividend is payable Feb. 14, 2019 to stockholders of record on Jan. 15, 2019, with an ex-dividend date of Jan. 14, 2019. The yield based on the new payout is 5.9%.
BP Midstream Partners (BPMP) recently increased its quarterly dividend 3.6% to $0.3355 per share. The dividend is payable Nov. 14, 2019 to stockholders of record on Oct. 31, 2019, with an ex-dividend date of Oct. 30, 2019. The yield based on the new payout is 9.0%.
Total S.A. (TOT) recently increased its quarterly dividend 3% to EUR 0.66 per share. The dividend is payable Apr. 21, 2019, with an ex-dividend date of Mar. 26, 2019. The yield based on the new payout is 5.7%.
Cameco (CCJ) recently increased its quarterly dividend 31% to $0.08 per share. The dividend is payable Dec. 13, 2019 to stockholders of record on Nov. 27, 2019, with an ex-dividend date of Nov. 26, 2019. The yield based on the new payout is 0.9%.
Estee Lauder (EL) recently increased its quarterly dividend 12% to $0.48 per share. The dividend is payable Dec. 16, 2019 to stockholders of record on Nov. 29, 2019, with an ex-dividend date of Nov. 27, 2019. The yield based on the new payout is 1.0%.
Cenovus Energy (CVE) recently increased its quarterly dividend 25% to C$0.0625 per share. The dividend is payable Dec. 31, 2019 to stockholders of record on Dec. 13, 2019, with an ex-dividend date of Dec. 12, 2019. The yield based on the new payout is 2.2%.
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 ABBV,
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Tags: SBUX, ABBV, BPMP, TOT, CCJ, EL, CVE,
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