Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough — the dividend growth investor also expects substantial and consistent growth.
Below are several companies not only sustaining their dividends, but growing them:
National Fuel Gas Company (NFG) operates as a diversified energy company primarily in the United States. June 9, the company increased its quarterly dividend 2.9% to $0.355 per share. This action marks the 109th year of uninterrupted dividend payments and the 41st consecutive year that National Fuel has increased its dividend. The yield based on the new payout is 2.1%.
Target Corporation (TGT) operates general merchandise stores in the United States. June 8, the company increased its quarterly dividend 20% to 30 cents per share. The dividend is payable Sept. 10, 2011, to shareholders of record at the close of business Aug, 18, 2011. The third-quarter dividend will be the company’s 176th consecutive dividend paid since October 1967 when the company became publicly held. The yield based on the new payout is 2.6%.
Caterpillar Inc. (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. June 8, the company increased its quarterly dividend 4.5% to 46 cents per share. The dividend is payable Aug. 20, 2011, to stockholders of record at the close of business, July 20, 2011. The yield based on the new payout is 1.9%.
Rockwell Automation Inc. (ROK) provides industrial automation power, control and information solutions. June 2, the company increased it quarterly dividend 21% to $0.425 cents per share on common stock, payable on Sept. 12, 2011, to share owners of record at the close of business on Aug. 15, 2011. The yield based on the new payout is 2.1%.
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.