Ned Davis Research examined the relative performance of stocks between 1972 and 2006 and established a link between rising dividends and superior long-term returns. The study found S&P 500 stocks that consistently increased their dividends returned 10.4% total return (dividends plus share price appreciation), while those that did not increase their dividends returned only 8.2%. The 2.2% advantage of the dividend raisers would equate to an additional $1,802 per $100 invested in 1972.
Below are several companies looking to provide their share holders with superior long-term returns by increasing their cash dividends:
Bemis Company Inc. (BMS, Financial) manufactures and sells flexible packaging products and pressure sensitive materials in North America, Latin America, Europe and the Asia Pacific. Feb. 6, the company increased its quarterly dividend 3.8% to $0.27 per share. The dividend is payable March 3, 2014 to stockholders of record on Feb. 18, 2014. The yield based on the new payout is 2.9%.
Dr Pepper Snapple Group Inc. (DPS, Financial) operates as a brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada, Mexico and the Caribbean. Feb. 6, the company increased its quarterly dividend 7.9% to $0.41 per share. The dividend is payable April 4, 2014 to stockholders of record on March 17, 2014. The yield based on the new payout is 3.4%.
Union Pacific Corporation (UNP, Financial) provides rail transportation services in North America. Feb. 6, the company increased its quarterly dividend 15.2% to $0.91 per share. the dividend is payable April 1, 2014 to stockholders of record on Feb. 28, 2014. The yield based on the new payout is 2.1%.
PPL Corporation (PPL, Financial), an energy and utility holding company, engages in the generation, transmission, distribution, and sale of electricity to wholesale and retail customers in the U.S. and the UK. Feb. 6, the company increased its quarterly dividend 1.4% to $0.3725 per share. The dividend is payable on April 1, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 4.6%.
CME Group Inc. (CME, Financial) operates the CME, CBOT, NYMEX COMEX, and KCBT futures exchanges worldwide. Feb. 6, the company increased its quarterly dividend 4.4% to $0.47 per share. the dividend is payable March 25, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 2.5%.
Assured Guaranty Ltd. (AGO, Financial) provides credit protection products to public finance, infrastructure, and structured finance markets. Feb. 5, the company increased its quarterly dividend 10% to $0.11 per share. The dividend is payable March 5, 2014, to stockholders of record on Feb. 19, 2014. The yield based on the new payout is 2.1%.
Time Warner Inc. (TWX, Financial) operates as a media and entertainment company in the U.S. and internationally. Feb. 5, the company increased its quarterly dividend 10.4% to $0.3175 per share. The dividend is payable March 15, 2014 to stockholders of record on Feb. 28, 2014. The yield based on the new payout is 2.0%.
Northeast Utilities (NU, Financial), a public utility company, through its subsidiaries, engages in the energy delivery business. Feb. 4, the company increased its quarterly dividend 6.8% to $0.3975 per share. The dividend is payable March 31, 2014 to stockholders of record on March 3, 2014. The yield based on the new payout is 3.7%.
AGL Resources Inc. (GAS, Financial) , an energy services holding company, distributes natural gas to residential, commercial, industrial, and governmental customers in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland. Feb. 4, the company increased its quarterly dividend 4.3% to $0.49 per share. The dividend is payable March 1, 2014 to stockholders of record on Feb. 14, 2014. The yield based on the new payout is 4.2%.
Coca-Cola Enterprises Inc. (CCE, Financial) produces, distributes, and markets nonalcoholic beverages. Feb. 4, the company increased its quarterly dividend 25% to $0.25 per share. The dividend is payable March 20, 2014 to stockholders of record on March 7, 2014. The yield based on the new payout is 2.3%.
Manhattan Bridge Capital Inc. (LOAN) offers short-term, secured, and non–banking loans to real estate investors to fund their acquisition and construction of properties in the New York Metropolitan area. Feb. 4, the company increased is quarterly dividend 100% to $0.02 per share. The dividend is payable May 20, 2014 to stockholders of record on May 15, 2014. The yield based on the new payout is 4.4%.
R.G. Barry Corporation (DFZ) develops and markets footwear, handbags, and foot care products for women in North America. Feb. 4, the company increased its quarterly dividend 11.1% to $0.10 per share. The dividend is payable on March 4, 2014 to stockholders of record on Feb. 17, 2014. The yield based on the new payout is 2.3%.
Suncor Energy Inc. (SU) operates as an integrated energy company. Feb. 3, the company increased its quarterly dividend 15% to $0.23 per share. The dividend is payable March 25, 2014 to stockholders of record on March 4, 2014. The yield based on the new payout is 2.9%.
Principal Financial Group Inc. (PFG) provides retirement savings, investment, and insurance products and services. Feb. 3, the company increased its quarterly dividend 7.7% to $0.28 per share. The dividend is payable March 28, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 2.7%.
Otter Tail Corporation (OTTR) engages in electric and nonelectric operations primarily in the United States, Canada and Mexico. Feb. 3, the company increased its quarterly dividend 1.7% to $0.3025 per share./ the dividend is payable March 10, 2014 to stockholders of record on Feb. 14, 2014. The yield based on the new payout is 4.4%.
Meredith Corporation (MDP, Financial), a media and marketing company, is engaged in magazine publishing and related brand licensing, television broadcasting, digital and customer relationship marketing, digital and mobile media, and video creation operations. Feb. 3, the company increased its quarterly dividend 6.1% to $0.4325 per March 14, 2014 to stockholders of record on Feb, 28, 2014. The yield based on the new payout is 4.0%.
L Brands Inc. (LB) operates as a specialty retailer of women’s intimate and other apparel, beauty and personal care products, and accessories. Feb. 3, the company increased its quarterly dividend 13.3% to $0.34 per share. The dividend is payable March 7. 2014, to stockholders of record on Feb. 21, 2014. The yield based on the new payout is 2.6%.
Simon Property Group Inc. (SPG) is an equity real estate investment trust. The firm invests in the real estate markets across the globe. It engages in investment, ownership, and management of properties. Jan. 31, the company increased its quarterly dividend 4.2% to $1.25 per share. The dividend is payable Feb. 28, 2014 to stockholders of record on February 14, 2014. The yield based on the new payout is 3.2%.
Mattel Inc. (MAT, Financial) designs, manufactures, and markets various toy products. Jan. 31, the company increased its quarterly dividend 5.6% to $0.38 per share. The dividend is payable March 7, 2014 to stockholders of record on Feb. 20, 2014. The yield based on the new payout is 4.1%.
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 MDP, GAS in my High-Yield Portfolio. See a list of all my dividend growth holdings here.
Related Posts
- Investments That Pay Monthly Dividends
- 12 Higher Yielding Stocks With A Low Dividend Payout Ratio
- Early Warning Signs of a Dividend Cut
- Income Annuities vs. Dividend Stocks
- 7 Tech Stocks With A History of Growing Their Dividends
