It's human nature for new income investors to focus on yield. Many eventually learn that above-average yields often carry an above-average risk of a dividend cut, loss of invested capital or both. People involved in extreme sports/hobbies, such as base jumping, hang gliding and shark diving, do things to minimize risk and protect themselves. In much the same way, those investing in dividend stocks can do certain things to increase their chance of success. One method is to focus on stocks that consistently increase their dividends.
Below are several stocks building shareholder returns through higher dividends:
Macy's Inc. (NYSE:M) operates department stores and Internet sites in the U.S.. January 5, the company increased its quarterly dividend 100% to $0.20 per share. The dividend is payable April 2, 2012, to shareholders of record at the close of business on March 15, 2012. The yield based on the new payout is 2.4%.
DDR Corp. (NYSE:DDR) operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, developing, redeveloping, owning, leasing, and managing shopping centers, mini-malls and lifestyle centers. January 5, the company increased its quarterly dividend 50% to $0.12 per share. The dividend is payable April 3, 2012 to shareholders of record at the close of business on March 16, 2012. The yield based on the new payout is 3.8%.
Bank of the Ozarks Inc. (NASDAQ:OZRK) operates as the bank holding company for Bank of the Ozarks that provides a range of retail and commercial banking services. January 3, the company increased its quarterly dividend 10% to $0.11 per share. The dividend is payable Jan. 20, 2012, to shareholders of record as of Jan. 13, 2012. The yield based on the new payout is 1.5%.
LTC Properties Inc. (NYSE:LTC) operates as a health care real estate investment trust (REIT) in the U.S. January 3, the company increased its monthly dividend 3.6% to $0.145 per share. The dividend is payable on January 31, February 29 and March 30, 2012, respectively, to stockholders of record on January 23, February 21 and March 22, 2012, respectively. The yield based on the new payout is 5.6%.
Watsco Inc. (NYSE:WSO) distributes air conditioning, heating and refrigeration equipment, and related parts and supplies in the U.S. January 3, the company increased its quarterly dividend 9% to $0.62 per share. The dividend is payable on January 31 to shareholders of record on January 13. The yield based on the new payout is 3.7%.
Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends and those expected to in 2012; 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 dividend growth holdings here.
- Dividend Stocks: The Good, The Bad and The Ugly
- Dividend Stocks Role In The Future Recovery
- Refining Risk Measurement Of Dividend Stocks
- Managing The Risk Of A Dividend Cut With Allocations
- American Safari: Stalking Three Great Dividend Stocks
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
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