Dividend investors would be wise to focus not just on a stock's current
yield, but also on the long-term growth potential of its dividends.
That's because strong businesses that consistently raise their dividend
payouts reward shareholders with a steadily rising income stream that
essentially equates to a raise every year. Below are some stocks which have increased their dividends recently.Phillips 66 - (PSX) - On October 2, Phillips 66 surprised many by announcing a 25% increase to its quarterly dividend to $0.39 per share. This would mark Phillips 66's third dividend increase in only six quarters. At current prices, Phillips 66 now yields about 2.60%.
Lockheed Martin (LMT) - Declared a quarterly dividend of $1.33 per share, or $5.32 annualized. This is a 15.7% increase from the prior dividend of $1.15. The dividend will be payable on December 27, 2013, to stockholders of record on December 2, 2013, with an ex-dividend date of November 27, 2013. The annual yield on the dividend is 4.1 percent.
McDonalds (MCD) - Raised its dividend 5.20% to $0.81 per share. Shares yield an appetizing 3.43%. The fast-food giant’s five-year dividend growth rate is 13.90% per year. This dividend champion has raised distributions for 37 years in a row.
Microsoft (MSFT) - Increased its dividend 21.7% to $0.28 per share. The tech giant has raised its dividend for 11 consecutive years. The five-year dividend growth rate is 15.10%.
Northwest Natural Gas Co (NWN) - Raised its third-quarter dividend of $0.46 per share, a 1% increase in the payout made to investors last quarter of $0.455 per share. The quarterly dividend is payable on Nov. 15 to the holders of record at the close of business on Oct. 31. The regular dividend payment equates to a $1.84-per-share annual dividend, yielding 4.4%. NWN is a dividend champion which has increased its dividend for 58 consecutive years.
Omega Healthcare Investors (OHI) - Declared a quarterly dividend of $0.48 per share, or $1.92 annualized. This is a 2.1% increase from the prior dividend of $0.47. The dividend will be payable on November 15, 2013, to stockholders of record on October 31, 2013, with an ex-dividend date of October 29, 2013. The annual yield on the dividend is 6.1 percent.
Full Disclosure: I have a position in McDonalds (MCD) at the time of this writing. You can see a list of all my dividend growth positions here.
I doubled my position in OHI this week. At 6% yield and growing dividends, a bright future for the business - this is a great play on the aging population and the required medical care they will need
ReplyDeleteSame as Roadmap, love the play on the aging US population. I think healthcare and related industries will do very well over the next 30 years. Happy I snagged some share of OHI earlier this summer.
ReplyDeleteA few of my holdings also increased dividends recently such as NGLS and LGCY, but I didn't know about MCD since it didn't show up on my spreadsheet yet. So it is a pleasant news! Now everybody is bashing MCD what a bad company it is and losing and whatever else, so I think it is a great opportunity for adding more shares. It would be good if those doomers push the stock lower to 85 dollar level!
ReplyDeleteNice increase from Microsoft! Lots of haters of that company but they keep on making money and passing it on to shareholders. I'm one happy owner.
ReplyDeleteAlso happy to see the raise from McDonald's. I'd like a larger raise but as long as it's higher than inflation I can't complain too much!