We have all heard it: Stodgy, for old people, yawn, boring! These have all been used to describe dividend growth stocks. As a dividend growth investor, I sometimes think our strategy is the most misunderstood. It seems everyone understands a trader's mentality and a high-yield mentality. Periodically, it is good to remind ourselves that dividend growth stocks provides us with excellent long-term leverage and a growing income.
Below are several companies confident and secure enough in their business to increase their cash dividends:
Enduro Royalty Trust (NDRO, Financial) focuses on acquiring and owning a net profits interest representing the right to receive an 80% of the net profits from the sale of oil and natural gas production. On March 20, the company increased its monthly dividend 135% to $0.03711 per share. The dividend is payable April 14 to stockholders of record on March 31, with an ex-dividend date of March 27. The yield based on the new payout is 11%.
Silver Bay Realty Trust Corp (SBY, Financial) is a real estate investment trust that is engaged in acquisition, renovation, leasing, and management of single-family properties in the United States. On March 25, the company increased its quarterly dividend 50% to $0.09 per share. The dividend is payable April 16 to stockholders of record on April 5, with an ex-dividend date of March 31. The yield based on the new payout is 2.3%.
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.
Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
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