To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise the dividend. No CEO of this type of company wants a dividend cut to occur on his or her watch.
Here are several big-name companies that have recently increased their cash dividends by double digits:
Chevron Corporation (CVX) engages in petroleum, chemicals, mining, power generation and energy operations worldwide. The company operates in two segments, Upstream and Downstream. April 24, the company increased its quarterly dividend 11.1% to $1.00 per share. The dividend is payable June 10, 2013, to holders of common stock as shown on the transfer records of the corporation at the close of business on May 17, 2013. The yield based on the new payout is 3.4%.
Exxon Mobil Corporation (XOM) engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products. April 24, the company increased its quarterly dividend 10.5% to $0.63 per share. The dividend is payable June 10, 2013 to shareholders of record at the close of business on May 13, 2013. The yield based on the new payout is 2.8%.
Apple Inc. (NASDAQ:AAPL) designs, manufactures and markets mobile communication and media devices, personal computing products and portable digital music players worldwide. April 23, the company increased its quarterly dividend 15% to $3.05 per common share. The dividend is payable on May 16, 2013, to shareholders of record as of the close of business on May 13, 2013. The yield based on the new payout is 3.0%.
Wells Fargo & Company (WFC) provides retail, commercial, and corporate banking services. April 23, the company increased its quarterly dividend 20% to $0.30 per share. The dividend is payable June 1, 2013, to stockholders of record on May 10, 2013. The yield based on the new payout is 3.2%.
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: Long CVX in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.
- All Investments Carry Risk
- 9 Stocks Delivering The Dividend Dream
- 10 Quality Dividend Stocks Trading Below Their Fair Value
- Warren Buffett's Two Investing Rules For Dividend Investors
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1899
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
About the author: