Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confuse a buy-and-hold strategy with day-trading with a longer duration. A true implementation of buy-and-hold includes a focus on blue-chip stocks with a sustainable advantage, along with a reasonable asset allocation framework.
One sign of a blue-chip stock is a long string of dividend increases. Below are several companies that have recently raised the bar by increasing their cash dividends:
The J. M. Smucker Company (SJM, Financial) manufactures and markets branded food products worldwide. The company operates through three segments: U.S. Retail Coffee; U.S. July 16th the company increased its quarterly dividend 10.3% to $0.64 per share. The dividend is payable September 2, 2014 to shareholders of record on August 15, 2014. The yield based on the new payout is 2.4%. 13 years of consecutive dividend increases.
National Retail Properties, Inc. (NNN, Financial) is a publicly owned equity real estate investment trust that acquires, owns, manages, and develops retail properties in the United States. July 15th the company increased its quarterly dividend 3.7% to $0.42 per share. The dividend is payable August 15, 2014 to shareholders of record on July 31, 2014. The yield based on the new payout is 4.5%. 24 years of consecutive dividend increases.
Omega Healthcare Investors, Inc. (OHI, Financial) is a real estate investment firm. The firm invests in the real estate markets of United States. July 15th the company increased its quarterly dividend 2.0% to $0.51 per share. The dividend is payable August 15, 2014 to shareholders of record on July 31, 2014. The yield based on the new payout is 5.4%. 12 years of consecutive dividend increases.
Targa Resources Partners LP (NGLS, Financial) is engaged in the ownership, operation, acquisition, and development of midstream energy assets in the United States. July 15th the partnership increased its quarterly distribution 2.3% to $0.7625 per unit. The distribution is payable August 14, 2014 to shareholders of record on July 28, 2014. The yield based on the new payout is 4.5%. Seven years of consecutive dividend increases.
Education Realty Trust, Inc. (EDR, Financial), a real estate investment trust (REIT), develops, acquires, owns, and manages student housing communities located near university campuses in the United States. July 15th the company increased its quarterly dividend 9.1% to $0.12 per share. The dividend is payable August 15, 2014 to shareholders of record on July 31, 2014. The yield based on the new payout is 4.4%. Four years of consecutive dividend increases.
Compressco Partners, L.P. (GSJK, Financial) provides compression-based production enhancement services for natural gas and oil exploration and production companies. July 11th the partnership increased its quarterly distribution 1.7% to $0.4525 per unit. The distribution is payable August 15, 2014 to unitholders of record on July 21, 2014. The yield based on the new payout is 6.9%. Three years of consecutive dividend increases.
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: Ling NNN in my Dividend Growth Portfolio and long OHI in my High-Yield Portfolio. No position in the aforementioned securities. See a list of all my dividend growth holdings here.
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