Deferred gratification is a principle in which one or more people choose to postpone near-term benefits in order to enhance their chances of greater benefits in the future. In our microwave society marked by the "I want it now" attitude, it is unusual to find someone willing to wait. However, deferred gratification is essential for anyone wanting to build wealth and is a key ingredient in a successful dividend investing strategy.
Below are several stocks building future gratification through with the promise of higher future cash dividends:
Omega Healthcare Investors Inc. (NYSE:OHI) is a real estate investment trust investing in and providing financing to the long-term care industry. On April 14, the company increased its quarterly dividend 2.7% to $0.38 per share. The dividend is payable May 16, 2011, to common stockholders of record on April 29, 2011. The yield based on the new payout is 6.4%.
The Dow Chemical Company (NYSE:DOW) engages in the manufacture and supply of products used primarily as raw materials in the production of customer products and services worldwide. April 14th the company increased its quarterly dividend 67% to $0.25 per share. The dividend will be payable on July 29, 2011, to shareholders of record on June 30, 2011. Dow has paid its shareholders cash dividends every quarter since 1912. The yield based on the new payout is 2.7%.
H.B. Fuller Company (NYSE:FUL) is a leading global adhesives provider focusing on perfecting adhesives, sealants, paints and other specialty chemical products. On April 14, the company increased its quarterly dividend 7% to $0.075 per share. The dividend is payable on May 12, 2011, to shareholders of record at the close of business on April 28, 2010. The yield based on the new payout is 1.4%.
Duncan Energy Partners L.P. (DEP) is a publicly traded partnership that provides midstream energy services, including gathering, transportation, marketing and storage of natural gas. On April 14, the company increased its quarterly dividend 2.2% to $0.4475 per unit. The distribution is payable May 6, 2011, to unitholders of record at the close of business on Friday, April 29, 2011. The yield based on the new payout is 4.7%.
United Technologies Corp. (NYSE:UTX) is a diversified company that provides high technology products and services to the aerospace and building industries worldwide. On April 13, the company increased its quarterly dividend 12.9% to $0.48 per share. The dividend is payable June 10 to shareholders of record at the close of business May 20. The ex-dividend date is May 18. The yield based on the new payout is 2.3%.
Gladstone Investment Corporation (NASDAQ:GAIN) is a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States. On April 12, the company increased its monthly dividend 12.5% to $0.045 per share. The dividend is payable April 29, 2011, to shareholders of record on April 22, 2011. The yield based on the new payout is 7.4%.
Plains All American Pipeline L.P. (NYSE:PAA) is a publicly-traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. April 11, the company increased its quarterly dividend 1.3% to $0.97 per unit ($3.88 per unit on an annualized basis) on all of its outstanding limited partner units. The distribution is payable on May 13, 2011, to holders of record of such units at the close of business on May 3, 2011. The yield based on the new payout is 6.1%.
The Procter & Gamble Company (NYSE:PG) provides consumer packaged goods in the United States and internationally. On April 11, the company increased its quarterly dividend 9% to $0.525 per share. The dividend is payable on or after May 16, 2011, to shareholders of record at the close of business on April 29, 2011. P&G has been paying a dividend for 121 consecutive years since its incorporation in 1890 and has increased its dividend for 55 consecutive years at an annual compound average rate of approximately 9.5%. The yield based on the new payout is 3.3%.
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 UTX, PG. See a list of all my income holdings here.
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