As a dividend growth investor, one of the primary objectives I seek is passive dividend income from my investments that increases over the rate of inflation, annually. It’s always wonderful news when companies decide to reward loyal, long-term shareholders with a dividend raise. A dividend raise typically means operations are doing well, and management is confident enough about cash flow to give shareholders a raise. All in all, it’s a very good sign.
I try to keep my eyes peeled for dividend raises from companies I’m invested in, as well as companies on my watch list. Some recent dividend increases include:
General Mills, Inc. (GIS) recently gave shareholders a 7.9% raise, increasing the quarterly dividend from $0.38 to $0.41 per share. This now marks 11 years of consecutive dividend raises for this consumer giant. I’m a huge fan of General Mills, but just have not found the right capital at the right time in order to purchase shares. It always seems like another company rises to the top of my list and I buy equity elsewhere. But I do fully plan to own a piece of this company before I’m done accumulating assets. Shares in GIS now yield 3.21% after the raise. Not much to dislike here with the plethora of brands, decent valuation, and attractive yield.
The Bank of Nova Scotia (BNS) increased its quarterly per share dividend from $0.62 CAD to $0.64 CAD, amounting to a 3.2% raise. Dividends with Canada’s most international bank are declared in Canadian Dollars, and after factoring in current exchange rates the dividend in our currency equates to $0.57 per share. The yield on shares with the new payout is 3.96%. I like BNS and it’s currently high on my watch list. Although their dividend growth streak is short, they didn’t cut dividends during the Great Recession. Furthermore, they’ve been raising their dividend twice annually since 2012. I continue to appreciate Bank of Nova Scotia’s international scope and conservative growth.
Raytheon Company (RTN) just yesterday showed shareholders the love with a double-digit dividend raise. The quarterly dividend was increased by a full 10%, as the new payout is now $0.605 per share over the old rate of $0.55 per share. Raytheon now has 10 years of annual dividend growth under its belt. As a shareholder, I really appreciate this dividend raise. RTN has been extremely shareholder friendly over the last few years, and this year is no different. Although I don’t find shares particularly cheap here, I’m happy to hold and collect my rising income. RTN has doubled for me, and some might feel compelled to sell. But as long as RTN keeps delivering raises like this I’m a shareholder for the long term. RTN now yields 2.46% after factoring in the new payout.
Air Products & Chemicals, Inc. (APD) raised its quarterly dividend by 8.5% just hours ago. The new payout of $0.77 per share supersedes the old rate of $0.71. APD has so far been another fantastic investment for me. The company has now managed 32 years of consecutive annual dividend raises. APD is another stock that I don’t find particularly cheap here, with a P/E ratio of 25.61, but I’m happy to continue owning a piece of this company.
Full Disclosure: Long BNS, RTN, APD
Own any of these stocks? Happy with the raises?
Thanks for reading.