GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

How to Invest Like a Dividend Billionaire: XOM, WMT, SYK, UHT, VAL

Some of America’s richest families own stakes in one of the oldest enterprises. The Rockefellers, Waltons, DuPonts, Johnsons and Mellons control fortunes in the billions of dollars, which are spread amongst descendents of the people that accumulated the fortunes. These families have had generations of trust fund babies, which are essentially people who are expected to be retired for the rest of their lives. One common characteristic between all of these families is that their wealth is stored in companies, which tend to pay consistently increasing dividends. The Waltons have Walmart Stores (WMT), the Rockefellers have Exxon-Mobil (XOM), the Johnsons have Johnson & Johnson (JNJ) while the Stryker Family has Stryker (SYK). The rising dividend payments generated by the companies these families own generate a sufficient stream of income to pay for the monthly expenses of generations of descendants. These families have essentially managed to live off dividends for decades.

Investors, who are interested in generating an income stream off their capital that would last for several generations should look no further than dividend growth stocks. As far as the Stryker Family is concerned, their core holding announced an 18% increase in dividend income over the past week.

Stryker Corporation (SYK), together with its subsidiaries, operates as a medical technology company worldwide. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. The company raised its quarterly dividend by 18% to 21.25 cents per share. This marked the 19th consecutive annual dividend increase for this dividend achiever. Yield: 1.80%

Other companies, which rewarded their shareholders with dividend hikes include:

Universal Health Realty Income Trust (UHT) operates as a real estate investment trust (REIT) in the U.S. The company invests in health care and human service related facilities, including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute facilities, surgery centers, childcare centers, and medical office buildings. The company raised its quarterly dividend by 0.80% to 61 cents per share. This marked the 23th consecutive annual dividend increase for this dividend achiever. Yield: 6.50% (analysis)

The Valspar Corporation (VAL) manufactures and distributes coatings, paints and related products worldwide. The company raised its quarterly dividend by 11.10% to 20 cents per share. This marked the 34th consecutive annual dividend increase for this dividend champion. Yield: 2.20%

Ameriprise Financial Inc. (AMP), through its subsidiaries, provides financial planning, products and services primarily in the U.S. The company raised its quarterly dividend by 21.70% to 28 cents per share. This marked the eighth consecutive annual dividend increase for this dividend stock. Yield: 2.30%

Enbridge Inc. (ENB) engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. The company raised its quarterly dividend by 15% to 28.25 CAD cents/share. Enbridge is an international dividend achiever, which has raised dividends for 17 years in a row. Yield: 3.10%

Edison International (EIX), through its subsidiaries, engages in the supply of electric energy. Its distribution system consists of approximately 60,000 circuit miles of overhead lines, 43,500 circuit miles of underground lines, and 700 distribution substations located in California. The company raised its quarterly dividend by 1.60% to 32.50 cents/share. This marked the ninth consecutive annual dividend increase for Edison International. Edison International has paid dividends for over 100 years. Yield: 3.30%

National Health Investors Inc. (NHI), a real estate investment trust (REIT), invests in health care properties, primarily in the long-term care industry in the United States. . The company raised its quarterly dividend by 5.70% to 65 cents/share. This marked the 11th consecutive annual dividend increase for this dividend achiever. Yield: 6.10%

C.H. Robinson Worldwide Inc. (CHRW), a third-party logistics company, provides multimodal freight transportation services and logistics solutions to companies in various industries worldwide. The company raised its quarterly dividend by 13.80% to 33 cents/share. This marked the 14th consecutive annual dividend increase for this dividend achiever. Yield: 2%

Erie Indemnity Company (ERIE) provides sales, underwriting, and policy issuance services to the policyholders of Erie Insurance Exchange in the United States. The company raised its quarterly dividend by 7.30% to 55.25 cents per share. This marked the 22nd consecutive annual dividend increase for this dividend achiever. Yield: 2.90%

AXIS Capital Holdings Limited (AXS), through its subsidiaries, provides various insurance and reinsurance products to insurers and reinsurers worldwide. The company raised its quarterly dividend by 4.30% to 24 cents/share. This marked the tenth consecutive annual dividend increase for AXIS. Yield: 3.10%

Roper Industries Inc. (ROP) designs, manufactures, and distributes medical and scientific imaging products and software, energy systems and controls, and industrial technology products and radio frequency (RF) products and services. The company raised its quarterly dividend by 25% to 13.75 cents per share. This marked the 19th consecutive annual dividend increase for this dividend achiever. Yield: 0.70%

J&J Snack Foods Corp. (JJSF) manufactures nutritional snack foods; and distributes frozen beverages to the food service and retail supermarket industries in the United States, Mexico and Canada. The company raised its quarterly dividend by 10.60% to 13 cents/share. This marked the eighth consecutive annual dividend increase for this dividend stock. Yield: 1%

Full Disclosure: Long UHT

About the author:

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

Rating: 4.0/5 (8 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK