It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In "Triumph of the Optimists: 101 Years of Global Investment Returns (2002)," the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.
Here are several companies looking to increase their long-term returns by raising their cash dividends:
Accenture PLC (NYSE:ACN) provides management consulting, technology, and business process outsourcing services worldwide. Sept. 26, the company increased its semi-annual dividend dividend 15% to $0.93 per share. The dividend is payable on Nov. 15, 2013, to shareholders of record at the close of business on Oct. 8, 2013. The yield based on the new payout is 2.5%.
Lockheed Martin Corporation (NYSE:LMT), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems. Sept. 26, the company increased its quarterly dividend 15.7% to $1.33 per share. The dividend is payable Dec. 27, 2013 to holders of record as of the close of business on Dec. 2, 2013. The yield based on the new payout is 4.2%.
Campbell Soup Company (NYSE:CPB) engages in the manufacture and marketing of branded convenience food products worldwide. Sept. 25, the company increased its quarterly dividend 7.6% to $0.312 per share. The dividend is payable Oct. 28, 2013 to shareholders of record at the close of business Oct. 8, 2013. The yield based on the new payout is 3.0%.
Washington Federal Inc. (NASDAQ:WAFD) operates as the holding company for Washington Federal that provides various financial services in the U.S. Sept. 23, the company increased its quarterly dividend 11.1% to $0.10 per share. The dividend is payable Oct. 18, 2013 to common stockholders of record on Oct. 4, 2013. The yield based on the new payout is 2.0%.
Agrium Inc. (NYSE:AGU) engages in the retail of agricultural products and services. The company operates through three segments: Retail, Wholesale and Advanced Technologies. Sept. 23, the company increased its quarterly dividend 50% to $0.75 per share. The dividend is payable Oct. 17, 2013 to shareholders of record on Sept. 30, 2013. The yield based on the new payout is 3.4%.
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 LMT in my Dividend Growth Stock portfolio. See a list of all my dividend growth holdings here.
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
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- Defense Stocks May Not Be Defensive Stocks
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
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