Dividend Increases: Stocks Beating Inflation With Higher Dividends

Investing in dividend growth stocks is not about buying a current high yield, but instead building a high yield-on-cost over time. One of the criticisms I sometimes is, "That low yield isn't even covering inflation." This is a very valid concern, if true. The way many low yielding stocks yields compensate for inflation is by growing their dividend well in excess of the inflation rate.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:
KB Home (KBH) recently increased its quarterly dividend 67% to $0.15 per share. The dividend is payable Nov. 26 to shareholders of record Nov. 12, with an ex-div datte of Nov. 10. The yield based on the new payout is 1.5%.

Northwest Natural Holding (NWN) recently increased its quarterly dividend 0.5% to $0.48 per share. The dividend is payable Nov. 13 to shareholders of record Oct. 30, with an ex-div date of Oct. 29. The yield based on the new payout is 4.1%.

Thor (THO) recently increased its quarterly dividend 2.5% to $0.40 per share. The dividend is payable Nov. 6 to shareholders of record Oct. 23, with an ex-div date of Oct. 22. The yield based on the new payout is 1.67%.

A. O. Smith (AOS) recently increased its quarterly dividend 8.3% to $0.26 per share. The dividend is payable Nov. 16; for shareholders of record Oct. 30; ex-div Oct. 29. The yield based on the new payout is 1.84%.

Cummins (CMI) recently increased its quarterly dividend 3% to $1.35 per share. The dividend is payable Dec. 3; for shareholders of record Nov. 20; ex-div Nov. 19. The yield based on the new payout is 2.45%.

V.F. Corp. (VFC) recently increased its quarterly dividend 2.1% to $0.49 per share. The dividend is payable Dec. 21 to for shareholders of record Dec. 10, with an ex-div date of Dec. 9. The yield based on the new payout is 2.52%.

Avient (AVNT) recently increased its quarterly dividend 4.9% to $0.2125 per share. The dividend is payable Jan. 8 to shareholders of record Dec. 18, with an ex-div date of Dec. 17. The yield based on the new payout is 2.65%.

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 CMI, NWN,

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