Too often we take a short-term approach, to our long-term detriment. There is a reason we don't see infomercials selling dividend growth investment strategies. For those looking to get rich now, a disciplined approach to investing that focuses on the long-term simply isn't appealing. if I knew in my 20's or 30's what I know now about dividend growth stocks, I would likely be retired now. The compounding power of growing dividends is tremendous.
Below are several companies that are demonstrating the power of compounding dividends by increasing their cash dividends:
Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products. July 8th the company increased its quarterly dividend 25% to $0.78 per share. The dividend is payable September 2, 2014 to stockholders of record on August 22, 2014. The yield based on the new payout is 2.0%.
Healthcare Services Group, Inc. (HCSG), provides housekeeping, laundry, linen, facility maintenance, and dietary services to nursing homes, retirement complexes, rehabilitation centers and hospitals. July 8th the company increased its quarterly dividend 0.7% to $0.17375 per share. The dividend is payable September 26, 2014 to stockholders of record on August 22, 2014. The yield based on the new payout is 2.4%.
Codorus Valley Bancorp, Inc. (CVLY) operates as the holding company for PeoplesBank that offers a range of business and consumer banking services. July 8th the company increased its quarterly dividend 4.2% to $0.125 per share. The dividend is payable August 12, 2014 to stockholders of record on July 22, 2014. The yield based on the new payout is 2.4%.
Fifth Street Finance Corp. (FSC) is a business development company specializing in investments in middle market, bridge financing, first and second lien debt financing, mezzanine debt, senior and junior secured debt. July 7th the company increased its monthly dividend 10% to $0.0917 per share. The dividend is payable September 30, 2014 to stockholders of record on September 15, 2014. The yield based on the new payout is 11.0%.
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.
- 8 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 10 Dividend Stocks For The Ultimate In Deferred Gratification
- 6 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- Why We Are Dividend Growth Investors
- 6 Dividend Growth Stocks With Very Little Debt
About the author: