It seems that every investing article ends with the same conclusion [size=11.0pt;line-height:115%; font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin;mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin;mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman";mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA">— buying dividend stocks[/b][/url]. Beyond the simple concepts, some of the writers are making really bad recommendations and cross-breeding dividend investing with their preferred form of investing. Dividend growth investing is not about exit points, momentum swings, relative strength, sector rotation; instead, it is about studying fundamentals, selecting superior stocks and building a portfolio with a long-term view. When we buy a dividend stock, we hope to hold it forever.
This week several companies provided their shareholders positive feedback with increased cash dividends:
Salem Communications Corporation (NASDAQ:SALM) operates as a multi-media company. Sept. 12, the company increased its quarterly dividend 5% to to $0.0525 per share. The dividend is payable Oct. 4, 2013 stockholders of record as of September 26, 2013. The yield based on the new payout is 2.6%.
Frisch’s Restaurants Inc. (FRS) operates restaurants in the United States. Sept. 12, the company increased its quarterly dividend 12.5% to $0.18 per share. The dividend is payable Oct. 10, 0213, to stockholders of record on Sept. 26, 2013, with an ex-dividend date of Sept. 24, 2013. The yield based on the new payout is 3.6%.
Brady Corporation (NYSE:BRC) provides identification solutions and specialty materials in the Americas, Europe, the Middle East, Africa and the Asia-Pacific. Sept. 11, the company increased its quarterly dividend 2.6% to $0.195 per share. The dividend is payable Oct. 31, 2013 to shareholders of record at the close of business Oct. 10, 2013. The yield based on the new payout is 2.4%.
RAIT Financial Trust (NYSE:RAS) operates as a self-managed and self-advised real estate investment trust (REIT). Sept. 10, the company increased its quarterly dividend 15% to $0.15 per share. The dividend is payable Oct. 31, 2013 to holders of record on Oct. 3, 2013. The ex-dividend date is Oct. 1, 2013. The yield based on the new payout is 9.3%.
International Paper Company (NYSE:IP) operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia and North Africa. Sept. 10, the company increased its quarterly dividend 17% to $0.35 per share. The dividend is payable on Dec. 16, 2013, to holders of record at the close of business on November 15, 2013. The yield based on the new payout is 2.8%.
New Jersey Resources Corporation (NYSE:NJR), an energy services holding company, provides retail and wholesale energy services. September 10, the company increased its quarterly dividend 5% to $0.42 per share. The dividend is payable Oct. 1, 2013 to shareholders of record on Sept. 23, 2013. The yield based on the new payout is 4.0%.
Alexandria Real Estate Equities (NYSE:ARE) Inc., a real estate investment trust (REIT), engages in the ownership, operation, management, development, acquisition and redevelopment of properties for the life sciences industry. Sept. 10, the company increased its quarterly dividend 4.6% to $0.68 per share. The dividend is payable on Oct. 15, 2013, to shareholders of record on Sept. 30, 2013. The yield based on the new payout is 4.3%.
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: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
- Free Cash Flow Payout vs. Dividend Payout
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- How Much Money Will You Need Before Retiring?
- The 2013 Dividend Achievers
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
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