If your goal is to accumulate wealth for a comfortable retirement, then there is no risk-free path. Throughout time every angle has been tried and failed. What appears to be a safe investment in a federally insured CD or money market may not even be covering inflation. Growth stocks don't always grow. The astute conservative investor turns to solid dividend paying stocks with a track record of growing their dividends each year.
Below are several companies that have recently elected to send more cash to their shareholders in the form of increased dividends:
Southside Bancshares Inc. (NASDAQ:SBSI) provides financial products and services to individuals, businesses, municipal entities, and non-profit organizations. March 29, the company increased its quarterly dividend 11.1% to $0.20 per share. The dividend is payable May 9, 2012 to shareholders of record April 18, 2012. The yield based on the new payout is 3.6%.
Homeowners Choice Inc. (HCII) provides property and casualty insurance in Florida. March 28, the company increased its quarterly dividend 33% to $0.20 per share. The dividend is payable June 15, 2012 to shareholders of record on the close of business May 17, 2012. The yield based on the new payout is 6.6%.
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) engages in the exploration, mining, and production of mineral resources. March 28, the company increased its quarterly dividend 25% to to $0.3125 per share. The dividend is payable payable May 1, 2012 to holders of record as of April 13, 2012 for its common stock. The yield based on the new payout is 3.4%.
Stewart Enterprises Inc. (STEI) provides funeral and cemetery products and services in the death care industry. March 27, the company in creased its annual dividend 14% to $0.16 per share. The dividend is payable April 26, 2012 to holders of record as of the close of business on April 12, 2012. The yield based on the new payout is 2.6%.
Crown Crafts Inc. (NASDAQ:CRWS) offers infant and toddler products in the United States, Canada, and internationally. March 26, the company increased its quarterly dividend 100% to $0.08 per share. The dividend is payable July 6, 2012 to stockholders of record at the close of business on June 15, 2012. The yield based on the new payout is 7.4%.
Horizon Bancorp (NASDAQ:HBNC) operates as the bank holding company for Horizon Bank N.A., which provides commercial and retail banking products and services in northwestern Indiana and southwestern Michigan. March 23, the company increased its quarterly dividend 8.3% to $0.13 per share. The dividend is payable April 20, 2012 to shareholders of record on April 6, 2012. The yield based on the new payout is 2.9%.
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 stocks. See a list of all my dividend growth holdings here.
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