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11 Stocks Providing an Inflation Hedge with Increasing Dividends

Dividends4Life

Dividends4Life

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With all the other investment strategies out there, why should investors consider dividend or income investing? There are a multitude of reasons to follow a dividend growth strategy. These include: investment stability, security of cash, continuous feedback, potential higher returns, low maintenance, inter alia. But for me the most important reason is the inflation hedge that a growing income will provide in my retirement years.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:

The Chubb Corporation (NYSE:CB) provides property and casualty insurance to businesses and individuals. Feb. 27, the company increased its quarterly dividend 13.6% to $0.50 per share. The dividend is payable April 1, 2014 to stockholders of record on Feb. 27, 2014. The yield based on the new payout is 2.3%.

Nordstrom Inc. (NYSE:JWN), a fashion specialty retailer, offers apparel, shoes, cosmetics and accessories for women, men, and children. Feb. 26, the company increased its quarterly dividend 10% to $0.33 per share. The dividend is payable March 25, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 2.2%.

Eaton Corporation Plc (NYSE:ETN) operates as a diversified power management company worldwide. Feb. 26, the company increased its quarterly dividend 16.7% to $0.49 per share. The dividend is payable March 21, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 2.6%.

Telephone and Data Systems Inc. (NYSE:TDS), a diversified telecommunications service company, provides wireless and wireline telecommunications services. Feb. 26, the company increased its quarterly dividend 5.1% to $0.134 per share. The dividend is payable March 31, 2014 to stockholders of record on March 14, 2014. The yield based on the new payout is 2.2%.

Kimberly-Clark Corporation (NYSE:KMB) manufactures and markets personal care, consumer tissue, and health care products worldwide. Feb. 25, the company increased its quarterly dividend 3.7% to $0.84 per share. The dividend is payable April 2, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 3.1%.

The Home Depot Inc. (NYSE:HD) operates as a home improvement retailer. Feb. 25, the company increased its quarterly dividend 20.5% to $0.47 per share. The dividend is payable March 27, 2014, to stockholders of record on March 13, 2014. The yield based on the new payout is 2.3%.

B&G Foods Inc. (NYSE:BGS) engage in the manufacture, sale and distribution of shelf-stable foods and household products. Feb. 24, the company increased its quarterly dividend 3% to $0.34 per share. The dividend is payable April 30, 2014 to stockholders of record on March 31, 2014. The yield based on the new payout is 4.5%.

Texas Roadhouse Inc. (NASDAQ:TXRH) operates a full service casual dining restaurant chain. Feb. 24, the company increased its quarterly dividend 25% to $0.15 per share. The dividend is payable April 4, 2014 to stockholders of record on March 19, 2014. The yield based on the new payout is 2.3%.

Sempra Energy (NYSE:SRE) operates as an energy services company. Feb. 21, the company increased its quarterly dividend 4.8% to $0.66 per share. The dividend is payable April 15, 2014 to stockholders of record on March 27, 2014. The yield based on the new payout is 2.9%.

Old Republic International Corporation (NYSE:ORI) engages in underwriting insurance products primarily in the United States and Canada. Feb. 21, the company increased its quarterly dividend 1.4% to $0.1825 per share. The dividend is payable March 14, 2014 to stockholders of record on March 4, 2014. The yield based on the new payout is 4.7%.

XL GROUP Public Limited Company (NYSE:XL) provides insurance and reinsurance coverages to industrial, commercial and professional firms, as well as insurance companies and other enterprises worldwide. Feb. 21, the company increased its quarterly dividend 28.6% to $0.18 per share. The dividend is payable March 31, 2014 to stockholders of record on March 14, 2014. The yield based on the new payout is 2.4%.

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 KMB in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.

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Dividends4Life
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