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Nine Stocks Raising The Dividend Growth Bar: LO, NRIM, BMI, MGEE, GKSR, WLK, TOD, BOBE, SFL

Dividends4Life

Dividend4Life

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Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confuse a buy-and-hold strategy with day-trading with a longer duration. A true implementation of buy-and-hold includes a focus on blue-chip stocks with a sustainable advantage, along with a reasonable asset allocation framework. One sign of a blue-chip stock is a long string of dividend increases.

Below are several companies that have recently raised the bar by increasing their cash dividends:

Lorillard (LO) is the third largest U.S. tobacco company and the leading manufacturer and marketer of menthol cigarettes. August 20th the company increased its quarterly dividend 12.5% to $1.125/share. The dividend is payable on September 10, 2010 to stockholders of record as of September 1, 2010. The ex-dividend date is August 30, 2010. The yield based on the new payout is 5.97%.

Northrim BanCorp (NRIM) is one of the largest commercial banks in Alaska, with operations primarily in Anchorage and Fairbanks. August 20th the company raised its quarterly dividend 20% to $0.12/share. The dividend is payable September 17, 2010, to shareholders of record at the close of business September 9, 2010. The yield based on the new payout is 2.93%.

Badger Meter (BMI) is a leading manufacturer and marketer of products incorporating liquid flow measurement and control technologies developed both internally and with other technology companies. August 20th the company increased its quarterly dividend $16.6% to $0.14/share. The dividend is payable on Sept. 15 to shareholders of record on Aug. 31. The ex-dividend date is Aug. 27. BMI is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 1.50%.

MGE Energy (MGEE) generates and distributes electricity and distributes natural gas in Wisconsin. August 20th the company raised its quarterly dividend to $0.3751/share. The dividend is payable on Sept. 15 to shareholders of record on Sept. 1. The ex-dividend date is Aug. 30. MGEE is a Dividend Achiever and has raised its dividend for 35 consecutive years. The yield based on the new payout is 4.14%.

G&K Services (GKSR) provides branded identity apparel and facility services programs. August 23rd the company increased its quarterly dividend 27% to $0.095/share. The dividend is payable on September 30, 2010 to shareholders of record at the close of business on September 16, 2010. The ex-dividend date is September 1. The yield based on the new payout is 1.93%.

Westlake Chemical (WLK) is an integrated manufacturer of petrochemicals, polymers and fabricated vinyl products. August 23rd the company raised its quarterly 10% dividend to $0.0635/share. The dividend is payable on September 16, 2010, to stockholders of record on September 1, 2010. The ex-dividend date is August 30. The yield based on the new payout is 1.02%.

Todd Shipyards (TOD) repairs, overhauls, converts, and constructs commercial and military ships in the Pacific Northwest. August 23rd the company increased its quarterly dividend to $0.10/share. This dividend is payable December 23, 2010, to shareholders of record as of December 8, 2010. The yield based on the new payout is 1.99%.

Bob Evans Farms (BOBE) owns and operates 571 Bob Evans Restaurants & 132 Mimi’s Cafes. It also produces and distributes pork sausage, complementary home-style convenience food items. August 25th the company raised its quarterly dividend 11.1% to $0.20/share. The dividend is payable on September 21 to stockholders of record at the close of business on September 7, 2010. The ex-dividend date is September 3, 2010. The yield based on the new payout is 3.14%.

Ship Finance (SFL) owns an international fleet of crude oil tankers, which are leased under long-term, fixed-price charters. August 26th the company increased its quarterly dividend to $0.35/share. The yield based on the new payout is 7.87%.

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. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

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About the author:

Dividend4Life
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http://www.dividend-growth-stocks.com/

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Comments

Josh Zachariah
Josh Zachariah - 4 years ago
A buy and hold strategy doesn't necessarily have to be in blue chips and it doesn't even have to include dividends. If that were the constraint then Berkshire Hathaway would never have made the cut. A sustainable competitive advantage is important and so is good management.

Philip Fisher was arguably one of the strongest advocates of buy and hold and he didn't consider dividend payments to be an essential feature to stocks worth buying. For those unfamiliar with him, he was widely influential on Warren Buffett and is probably credited with planting the seeds for Warren Buffett's "buy and hold" strategy. His book Common Stocks and Uncommon Profits is a great start for anyone interested in that strategy.

Josh Zachariah

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