Dividend growth investing is a long-term strategy. A growing dividend is a sign that the company is becoming more valuable. Companies that consistently increase dividends tend to have steadily rising share prices, and the best way to benefit from this is to buy and hold the stocks. Diversification and a focus on blue-chip stocks provides insurance for the few companies that don't pan out.
Here are several companies compounding their shareholder's wealth with increased cash dividends:
Flowers Foods Inc. (FLO, Financial) produces and markets bakery foods in the U.S. It operates in two segments, Direct-Store-Delivery (DSD) and Warehouse Delivery. May 21, the company increased its quarterly dividend 6.7% to $0.12 per share. The dividend is payable June 18, 2014 to stockholders of record on June 4, 2014. The yield based on the new payout is 2.3%.
JPMorgan Chase & Co. (JPM, Financial), a financial holding company, provides various financial services worldwide. May 20, the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable July 31, 2014 to stockholders of record on July 3, 2014. The yield based on the new payout is 3.0%.
American States Water Company (AWR, Financial) provides water, electric, and contracted services in the U.S. May 19, the company increased its quarterly dividend 5.2% to $0.213 per share. The dividend is payable Sept. 2, 2014 to stockholders of record on Aug. 15, 2014. The yield based on the new payout is 3.0%.
National Oilwell Varco Inc. (NOV, Financial) provides equipment and components for oil and gas drilling and production; oilfield services; and supply chain integration services to the upstream oil and gas industry worldwide. May 15, the company increased its quarterly dividend 77% to $0.46 per share. The dividend is payable June 27, 2014 to stockholders of record on June 13, 2014. The yield based on the new payout is 2.3%.
Marsh & McLennan Companies Inc. (MMC, Financial), a professional services firm, provides advice and solutions primarily in the areas of risk, strategy and human capital worldwide. May 15, the company increased its quarterly dividend 12% to $0.28 per share. The dividend is payable Aug. 15, 2014 to stockholders of record on July 11, 2014. The yield based on the new payout is 2.3%.
Gentex Corp (GNTX, Financial) is engaged in designing, developing, manufacturing and marketing automatic-dimming rearview mirrors and electronics for the automotive industry; variable dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. May 15, the company increased its quarterly dividend 14% to $0.16 per share. The dividend is payable July 18, 2014 to stockholders of record on July 8, 2014. The yield based on the new payout is 2.2%.
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: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
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