It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In "Triumph of the Optimists: 101 Years of Global Investment Returns (2002)," the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.
Here are several companies looking to increase their long-term returns by raising their cash dividends:
W. P. Carey & Co. LLC (NYSE:WPC) provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. June 16, the company increased its quarterly distribution 7% to $0.55 per share. The distribution is payable on July 15, 2011, to shareholders of record as of June 30, 2011, this marks the company's 41st consecutive distribution increase. The yield based on the new payout is 6.0%.
Stage Stores Inc. (NYSE:SSI) operates as a specialty department store retailer that offers branded and private label apparel, accessories, cosmetics and footwear for women, men, and children in the United States. June 13, the company increased its quarterly dividend 20% to $0.09 cents per share. The new quarterly rate of 9 cents per share will be applicable to dividends declared by the Board after June 22, 2011. The yield based on the new payout is 2.4%.
Iron Mountain Incorporated (NYSE:IRM) provides information management and related services for various media in North America, Europe, Latin America, and the Asia Pacific. June 13, the company increased its quarterly dividend 33% to $0.25 per share. The dividend is payable on July 15, 2011, to stockholders of record on June 24, 2011. The yield based on the new payout is 3.1%.
Chesapeake Energy Corporation (NYSE:CHK) produces natural gas in the US. June 13, the company increased its quarterly dividend 17% to $0.0875 per share. The dividend is payable on July 15, 2011, to common shareholders of record on July 1, 2011. The yield based on the new payout is 1.2%.
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.
- Four Dividend Stocks Stepping Up In The Downturn
- Increasing Dividend Yield Part VI: Time
- Increasing Dividend Yield Part V: MLPs
- Increasing Dividend Yield Part IV: Bonds
- Increasing Dividend Yield Part III: Preferred Stock
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
About the author: