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13 Stocks Using Real Cash to Pay Higher Dividends

Dividends4Life

Dividends4Life

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We have all heard it: "stodgy," "for old people," "yawn," "boring!" These terms have all been used to describe dividend growth investing. As a dividend growth investor, I sometimes think our strategy is the most misunderstood. It seems everyone understands a trader's mentality and a high-yield mentality. Periodically, it is good to remind ourselves that dividend growth provides us with excellent long-term leverage.

Below are several stocks using real cash to raise their dividends:

Raytheon Company’s (RTN) is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. On March 24, the company increased its quarterly dividend 15% to $0.43 per share. The dividend is payable on April 28, 2011, to shareholders of record as of the close of business on April 6, 2011. The yield based on the new payout is 3.4%.

Steelcase Inc. (SCS) engages in the manufacture and sale of furniture systems and seating products. On March 24, the company increased its quarterly dividend 50% to $0.06 per share. The dividend is payable on or before April 13, 2011, to shareholders of record as of April 1, 2011. The yield based on the new payout is 2.3%.

Fifth Third Bancorp (FITB) is a diversified financial services company headquartered in Cincinnati, Ohio. On March 22, the company increased its quarterly dividend 500% to $0.06 per share. The dividend is payable on Thursday, April 21, 2011, to shareholders of record as of Friday, April 1, 2011. The yield based on the new payout is 1.7%.

BNY Mellon (BK) is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. On March 22, the company increased its quarterly dividend 44% to $0.13 per share. The dividend is payable on May 10, 2011, to holders of record as of the close of business on April 29, 2011. The yield based on the new payout is 1.8%.

Medicis (MRX) is the leading independent specialty pharmaceutical company in the United States focusing primarily on the treatment of dermatological and aesthetic conditions. On March 22, the company increased its quarterly dividend 33% to $0.08 per share. The dividend is payable on April 29, 2011, to stockholders of record at the close of business on April 1, 2011. The yield based on the new payout is 1.1%.

Innophos Holdings Inc. (IPHS) is a leading North American producer of specialty phosphate products, offering performance-critical ingredients with applications in food, beverage, pharmaceutical, oral care and industrial end markets. On March 2,1 the company increased its quarterly dividend 47% to $0.25 per share. The dividend is payable on April 29, 2011, to holders of record on April 15, 2011. The yield based on the new payout is 1.1%.

American Greetings Corporation (AM) is a a creator and manufacturer of innovative social expression products that assist consumers in enhancing their relationships. On March 21 the company increased its quarterly dividend 7% to $0.15 per share. The quarterly dividend will be paid on April 21, 2011, to shareholders of record at the close of business on April 11, 2011. The yield based on the new payout is 2.7%.

Raven Industries Inc. (RAVN) serves the precision agriculture, high performance specialty films, aerospace and electronic manufacturing services markets. On March 21, the company increased its quarterly dividend 12.5% to $0.18 per share. The dividend is payable April 15, 2011, to shareholders of record on March 31, 2011. This is the company’s 25th consecutive annual cash dividend increase. The yield based on the new payout is 1.2%.

State Street Corporation (STT) is one of the world’s leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. On March 18, the company increased its quarterly dividend 1700% to $0.18 per share. The dividend is payable April 15, 2011, to stockholders of record as of April 1, 2011. The yield based on the new payout is 1.7%.

U.S. Bancorp (USB) is a financial bank holding company that provides various banking and financial services in the United States. On March 18, the company increased its quarterly dividend 150% to $0.125 per share. The dividend is payable on April 15, 2011, to shareholders of record at the close of business on March 31, 2011. The yield based on the new payout is 1.9%.

JPMorgan Chase & Co. (JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. On March 18, the company increased its quarterly dividend 400% to $0.25 per share. The dividend is payable on April 30, 2011, to stockholders of record at the close of business on April 6, 2011. The yield based on the new payout is 2.2%.

BB&T Corporation (BBT) is one of the largest financial services holding companies in the United States, with approximately $157.1 billion in assets and market capitalization of $18.3 billion, as of Dec. 31, 2010. On March 18, the company increased its quarterly dividend 6.7% to $0.16 per share plus a $0.01 per share special dividend per common share. The dividends are payable May 2, 2011, to shareholders of record as of April 8, 2011. BB&T (BBT) has one of the strongest dividend payouts in the country for banks and has paid a cash dividend to shareholders every year since 1903. The yield based on the new payout is 2.4%.

Cisco (CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. On March 18, the company announced it first cash dividend of $0.06 per share paid to shareholders in the company’s history. The dividend is payable on April 20, 2011, to all shareholders of record as of the close of business on March 31, 2011. The yield based on the new payout is 1.4%.

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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Dividends4Life
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