Numerous research projects have shown a conservative dividend growth-based investment strategy has consistently outperformed the market over time. My goal as a dividend growth investor is to build a steadily increasing income and not necessarily to outperform the market via capital gains. But given the choice, I certainty don’t mind having both.
Below are several dividend stocks building shareholder returns with higher cash dividends:
Tanger Factory Outlet Centers, Inc. (NYSE:SKT) is a publicly-traded REIT headquartered in Greensboro, N.C., that operates and owns, or has ownership interests in, a portfolio of 34 upscale outlet shopping centers in 22 states. April 7, the company increased its quarterly dividend 3.2% to $0.20 per share. The dividend is payable on May 13, 2011, to shareholders of record on April 29, 2011. The yield based on the new payout is 3.2%.
PNC Financial Services Group Inc. (NYSE:PNC) is one of the nation’s largest diversified financial services organizations providing retail and business banking. April 7, the company increased its quarterly dividend 250% to $0.35 per share. The dividend is payable May 5, 2011, to shareholders of record at the close of business on April 18, 2011. The yield based on the new payout is 2.2%.
Richardson Electronics Ltd. (NASDAQ:RELL) is a global provider of engineered solutions, a global distributor of electronic components to the electron device markets, and a global provider of display solutions to the display systems markets. April 6th the company increased its quarterly dividend 150% to $0.05/share. The dividend will be payable on May 20, 2011, to all common stockholders of record on May 6, 2011. The yield based on the new payout is 1.5%.
The TJX Companies Inc. (NYSE:TJX) is a leading off-price retailer of apparel and home fashions in the United States and worldwide. April 5, the company increased its quarterly dividend 27% to $0.19 per share. The dividend is payable June 2, 2011, to shareholders of record on May 12, 2011. Carol Meyrowitz, chief executive officer of The TJX Companies Inc. stated, “I am pleased to report that our Board of Directors has approved this 27% increase in our quarterly dividend, which reflects our confidence in the business and marks our 15th consecutive year of dividend increases.” The yield based on the new payout is 1.5%.
Government Properties Income Trust (NYSE:GOV) is a real estate investment trust, or REIT, which owns properties leased primarily to the U.S. Government and state governments located throughout the United States. GOV is headquartered in Newton, MA. April 5, the company increased its quarterly dividend 2.4% to $0.42 per share ($1.68 per share per year). This distribution will be paid to Government Properties Income Trust’s common shareholders of record as of the close of trading on April 26, 2011, and distributed on or about May 24, 2011. The yield based on the new payout is 6.2%.
Bank of the Ozarks Inc. (NASDAQ:OZRK) owns a state-chartered subsidiary bank that conducts banking operations through 94 offices in Arkansas, Texas, Georgia, Florida, South Carolina, North Carolina and Alabama. April 1, the company increased its quarterly dividend 5.9% to $0.18 per share. The dividend is payable April 22, 2011, to shareholders of record as of April 15, 2011. The Company has increased its quarterly dividend in five of the last six quarters. The yield based on the new payout is 1.6%.
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: Long KO, GPC, KMB, PNY, WMT. See a list of all my income holdings here.
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