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Eleven Outstanding Businesses Raising Dividends

It takes an outstanding business to increase dividends for decades, and outstanding businesses are often outstanding long-term investments. Weak businesses simply can’t and don’t raise dividends for decades. Below I have highlighted ten exceptional businesses, each of which has raised distributions for over 5 years in a row, and which also announced dividend increases over the past week:

Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals in North America. This master limited partnership announced increase in quarterly distributions to 60.50 cents/unit, which represents a 5.2 percent increase over the $0.575 per unit distribution rate declared with respect to the second quarter of 2010. Enterprise Product Partners is a dividend achiever, which has consistently increased distributions for 14 years in a row. Yield: 5.60% (analysis)

Walgreen Co. (WAG), together with its subsidiaries, engages in the operation of a chain of drugstores in the United States, increased its quarterly dividend by 28.60% to 22.50 cents per share. Walgreen Co. is a dividend aristocrat, which has increased its quarterly dividend in each of the past 36 years. The stock currently yields 2.10%. (analysis)

National Retail Properties, Inc. (NNN) is a publicly owned equity real estate investment trust. The firm acquires, owns, manages, and develops retail properties in the United States. National Retail Properties increased its quarterly distributions by 1.30% to 38.50 cents per share. This dividend achiever has increased quarterly distributions for 22 years in a row. Yield: 6% (analysis)

Plains All American Pipeline, L.P. (PAA) engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquefied petroleum gas and other natural gas-related petroleum products (LPG) in the United States and Canada. This master limited partnership increased its quarterly distributions to 98.25 cents per unit. Plains All American Pipelineis a dividend achiever which has increased its quarterly distributions in each of the past 11 years. The stock currently yields 6.10%.

Targa Resources Partners LP (NGLS), which provides midstream natural gas and natural gas liquid (NGL) services in the United States increased its quarterly distribution by 2.20% to 57 cents per unit. The company operates through two divisions, Natural Gas Gathering and Processing; and NGL Logistics and Marketing. Targa Resources Partners has increased its quarterly distribution in each of the past 5 years. The stock currently yields 6.40%.

Genesis Energy, L.P. (GEL), which operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States, increased its quarterly distributions to 41.50 cents per unit. Genesis Energy, L.P has increased its quarterly distributions in each of the past 8 years. The stock currently yields 6.20%.

Omega Healthcare Investors, Inc. (OHI) operates as a real estate investment trust (REIT) in the United States. The company invests in healthcare facilities, principally long-term healthcare facilities in the United States. Omega Healthcare Investors increased its quarterly distributions by 5.30% to 40 cents per share. Omega Healthcare Investors has increased quarterly distributions for ten years in a row. Yield: 7.50%

A.O. Smith Corporation (AOS), which engages in the manufacture and sale of water heating equipment to the residential and commercial markets in the United States and internationally increased its quarterly dividend by 14.30% to 16 cents per share. A.O. Smith Corporation is a dividend achiever, which has increased its quarterly dividend in each of the past 18 years. The stock currently yields 1.50%.

Healthcare Services Group, Inc. (HCSG), which provides housekeeping, laundry, linen, facility maintenance, and food services to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States increased its quarterly dividend to 15.875 cents per share. Healthcare Services Group, Inc. has increased its quarterly dividend in each of the past 8 years. The stock currently yields 3.60%.

Cummins Inc (CMI). which designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide increased its quarterly dividend by 52.40% to 40 cents per share. Cummins Inc has increased its quarterly dividend in each of the past 6 years. The stock currently yields 1.60%.

Tanger Factory Outlet Centers, Inc. (SKT), which engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers increased its quarterly distributions to 20 cents per share. Tanger Factory Outlet Centers is a dividend achiever which has increased its quarterly distributions in each of the past 19 years. The stock currently yields 2.90%.

I would consider adding to my position in Walgreen on dips below $36, which would be an equivalent yield of 2.50%. I used to be a big fan of National Retail Properties, however the fact that their FFO Payout Ratio is almost 100%, makes me rate this stock a hold for the moment.

Full Disclosure: Long NNN and WAG

About the author:

Dividend Growth Investor
http://www.dividendgrowthinvestor.com

Rating: 3.4/5 (9 votes)

Comments

James Nyka
James Nyka - 3 years ago


National Retail Properties; (SEMI-COLON) however, (COMMA) Improper punctuation detracts from your message.

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