For dividend growth investors, there are certain attributes of investments that are more relevant than others, such as yield and dividend growth. To illustrate the power of dividend growth consider that an investment's yield-on-cost will double every five years if they grow their dividend by 15%/year or 7 years at 10%/year or 14 years at 5%/year.
This week several companies took a step toward doubling their shareholders' yield-on-cost by increasing their cash dividends:
Thor Industries Inc. (THO, Financial) manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories. August 10 the company increased its quarterly dividend 50% to $0.15 per share. The dividend is payable on Oct. 14, 2011 to stockholders of record on Sept. 30, 2011. The yield based on the new payout is 3.3%.
Acme United Corporation (ACU, Financial) develops and markets cutting, measuring and safety products to the school, home, office, hardware and industrial markets. August 10 the company increased its quarterly dividend 17% to $0.07 per share. The dividend is payable on Oct. 24, 2011 to stockholders of record on the close of business on Oct. 3, 2011. The yield based on the new payout is 3.0%.
Kaman Corporation (KAMN, Financial) operates in the aerospace and industrial distribution markets. August 9 the company increased its quarterly dividend 14% to $0.16 per share. The dividend is payable Oct. 24, 2011 to shareholders of record on October 10, 2011. The yield based on the new payout is 1.8%.
Primoris Services Corporation (PRIM, Financial), a specialty contractor and infrastructure company, provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and product engineering services. August 9 it increased its dividend 20% to $0.03 per share. The dividend is payable on or about Oct. 14, 2011 to stockholders of record as of Sept. 30, 2011. The yield based on the new payout is 1.2%.
Chemed Corporation (CHE, Financial), through its subsidiaries, provides hospice care, and repair and cleaning services in the United States. August 8 the company increased its quarterly dividend 14.3% to $0.14 per share. The dividend is payable on Sept. 6, 2011, to shareholders of record as of Aug. 18, 2011. The yield based on the new payout is 1.1%.
Harleysville Group Inc. (HGIC, Financial) engages in the property and casualty insurance business primarily in the eastern and midwestern United States. August 5 the company increased its quarterly dividend 6% to to $0.38 per share. The dividend is payable Sept. 30, 2011, to shareholders of record on Sept. 15, 2011. This marks the 101st consecutive quarter Harleysville Group has paid a dividend since the company went public in 1986. The yield based on the new payout is 5.2%.
Connecticut Water Service Inc. (CTWS, Financial), through its subsidiaries, operates as a regulated water company in Connecticut. August 5 the company increased its quarterly dividend 2.2% to $0.2375 per share. The dividend is payable on September 15, 2011, for shareholders of record as of Sept. 1, 2011. The yield based on the new payout is 3.5%.
Illinois Tool Works Inc. (ITW, Financial) manufactures a range of industrial products and equipment worldwide. August 5 the company increased its quarterly dividend 6% to $0.36 cents per share. The dividend is payable Oct. 12, 2011 to stockholders of record on Friday, Sept. 30, 2011. The yield based on the new payout is 3.2%.
Eastman Chemical Company (EMN, Financial), a chemical company, engages in the manufacture and sale of chemicals, plastics and fibers. August 5 the company increased its quarterly dividend 11% to $0.52 per share. The dividend is payable Oct. 3, 2011 to stockholders of record as of Sept. 15, 2011. Since December 2010, the board has increased the quarterly cash dividend by 18 percent. The yield based on the new payout is 2.5%.
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: Long HGIC, ITW. See a list of all my dividend growth holdings here.
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- 10 Stocks With Sustainable Dividend Growth
- Income Annuities vs. Dividend Stocks
- 10 Dividend Stocks Delivering A Quick Payback
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This week several companies took a step toward doubling their shareholders' yield-on-cost by increasing their cash dividends:
Thor Industries Inc. (THO, Financial) manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories. August 10 the company increased its quarterly dividend 50% to $0.15 per share. The dividend is payable on Oct. 14, 2011 to stockholders of record on Sept. 30, 2011. The yield based on the new payout is 3.3%.
Acme United Corporation (ACU, Financial) develops and markets cutting, measuring and safety products to the school, home, office, hardware and industrial markets. August 10 the company increased its quarterly dividend 17% to $0.07 per share. The dividend is payable on Oct. 24, 2011 to stockholders of record on the close of business on Oct. 3, 2011. The yield based on the new payout is 3.0%.
Kaman Corporation (KAMN, Financial) operates in the aerospace and industrial distribution markets. August 9 the company increased its quarterly dividend 14% to $0.16 per share. The dividend is payable Oct. 24, 2011 to shareholders of record on October 10, 2011. The yield based on the new payout is 1.8%.
Primoris Services Corporation (PRIM, Financial), a specialty contractor and infrastructure company, provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and product engineering services. August 9 it increased its dividend 20% to $0.03 per share. The dividend is payable on or about Oct. 14, 2011 to stockholders of record as of Sept. 30, 2011. The yield based on the new payout is 1.2%.
Chemed Corporation (CHE, Financial), through its subsidiaries, provides hospice care, and repair and cleaning services in the United States. August 8 the company increased its quarterly dividend 14.3% to $0.14 per share. The dividend is payable on Sept. 6, 2011, to shareholders of record as of Aug. 18, 2011. The yield based on the new payout is 1.1%.
Harleysville Group Inc. (HGIC, Financial) engages in the property and casualty insurance business primarily in the eastern and midwestern United States. August 5 the company increased its quarterly dividend 6% to to $0.38 per share. The dividend is payable Sept. 30, 2011, to shareholders of record on Sept. 15, 2011. This marks the 101st consecutive quarter Harleysville Group has paid a dividend since the company went public in 1986. The yield based on the new payout is 5.2%.
Connecticut Water Service Inc. (CTWS, Financial), through its subsidiaries, operates as a regulated water company in Connecticut. August 5 the company increased its quarterly dividend 2.2% to $0.2375 per share. The dividend is payable on September 15, 2011, for shareholders of record as of Sept. 1, 2011. The yield based on the new payout is 3.5%.
Illinois Tool Works Inc. (ITW, Financial) manufactures a range of industrial products and equipment worldwide. August 5 the company increased its quarterly dividend 6% to $0.36 cents per share. The dividend is payable Oct. 12, 2011 to stockholders of record on Friday, Sept. 30, 2011. The yield based on the new payout is 3.2%.
Eastman Chemical Company (EMN, Financial), a chemical company, engages in the manufacture and sale of chemicals, plastics and fibers. August 5 the company increased its quarterly dividend 11% to $0.52 per share. The dividend is payable Oct. 3, 2011 to stockholders of record as of Sept. 15, 2011. Since December 2010, the board has increased the quarterly cash dividend by 18 percent. The yield based on the new payout is 2.5%.
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: Long HGIC, ITW. See a list of all my dividend growth holdings here.
Related Posts
- My Top 6 Performing Dividend Stocks Just Might Surprise You
- 10 Stocks With Sustainable Dividend Growth
- Income Annuities vs. Dividend Stocks
- 10 Dividend Stocks Delivering A Quick Payback
- Where To Find Great Dividend Stocks
