Dividend growth investing in its classic form focuses on identifying solid companies with a long record of growing their dividends each year; and an expectation that they will continue to do so into the future. The focus is not solely on yield but a combination of yield and dividend growth. Often it is the lower yield, higher growth, security that will provide the best return over time.
Here are several stocks living up to shareholders' expectations by raising their cash dividends:
Helmerich & Payne Inc. (HP) primarily operates as a contract drilling company in North and South America. June 5, the company increased its quarterly dividend 10% to $0.6875 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 2.5%.
UnitedHealth Group Incorporated (UNH) operates as a diversified health and well-being company in the U.S. June 5, the company increased its quarterly dividend 34% to $0.375 per share. The dividend is payable June 25, 2014 to stockholders of record on June 16, 2014. The yield based on the new payout is 1.9%.
Wells Timberland REIT Inc. (CTT), a real estate investment trust (REIT), focuses on the acquisition of timberland properties in the U.S. June 2, the company increased its quarterly dividend 13.6% to $0.125 per share. The dividend is payable Sept. 15, 2014 to stockholders of record on Aug. 29, 2014. The yield based on the new payout is 3.72%.
El Paso Electric Company (EE), a public utility company, is engaged in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. May 29, the company increased its quarterly dividend 5.7% to $0.28 per share. The dividend is payable June 30, 2014 to stockholders of record on June 13, 2014. The yield based on the new payout is 2.97%.
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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