4 Dividend Stocks Building Superior Long-Term Returns

Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company's increasing intrinsic value. Great companies that increase dividends tend to have rising share prices over time. Holding only first-rate businesses protects your dividend stream and helps provide for steady price appreciation.

Below are several companies building future returns with higher cash dividends:

Flowers Foods (FLO) recently increased its quarterly dividend 5.3% to $0.20 per share. The dividend is payable Jun. 19, 2020 to stockholders of record on Jun. 5, 2020, with an ex-dividend date of Jun. 4, 2020. The yield based on the new payout is 3.5%.

Universal (UVV) recently increased its quarterly dividend 1.3% to $0.77 per share. The dividend is payable Aug. 3, 2020 to stockholders of record on Jul. 13, 2020, with an ex-dividend date of Jul. 10, 2020. The yield based on the new payout is 6.8%.

Educational Development (EDUC) recently increased its quarterly dividend 20% to $0.06 per share. The dividend is payable Jun. 18, 2020 to stockholders of record on Jun. 2, 2020, with an ex-dividend date of Jun. 1, 2020. The yield based on the new payout is 4.1%.

Tri-Continental (TY) recently increased its quarterly dividend 6.6% to $0.2824 per share. The dividend is payable Jun. 25, 2020 to stockholders of record on Jun. 17, 2020, with an ex-dividend date of Jun. 16, 2020. The yield based on the new payout is 4.8%. In addition, the company declared a long-term capital gain distribution of $0.2074/share, payable in stock along with the quarterly dividend, except any stockholder elect to receive such distribution as follows: 75% in shares and 25% in cash; 50% in shares and 50% in cash; or 100% in cash.

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.

Alaris Royalty (ALARF) - cuts dividend by 30%
Elbit Systems (ESLT) - cuts dividend by 20%
Magic Software Enterprises (MGIC) - cuts dividend by 49%
Computer Modelling Group (CMDXF) - cuts dividends by 50%
Valhi (VHI) - cuts dividend by 67%
Ladder Capital (LADR) - cuts dividend by 41%
Lamar Advertising (LAMR) - cuts dividends by 50%

Full Disclosure: No position in the aforementioned securities.

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Tags: FLO, UVV, EDUC, TY, ALARF, ESLT, MGIC, CMDXF, VHI, LADR, LAMR,
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