It is well-documented that a significant portion of the historical equity returns are a result of reinvested dividends. Performance in any given year is driven by capital appreciation, but long-term returns are largely the result of reinvested dividends. It is important to note that you can reinvest dividends without participating in a formal DRIP plan. However, you can't reinvest dividends unless the company pays them, and the really good companies increase their cash dividends each year.
Last week we saw only one company increasing its dividend. This week seven companies stepped up and rewarded their shareholders with higher cash dividends:
A. O. Smith (AOS) is a manufacturer of electric motors and residential and commercial water heaters. This past week, AOS increased its dividend 2.6% to $0.195/ share. The dividend is payable on August 17th to shareholders of record July 31st. AOS is a Dividend Achiever and has increased its dividend for 16 consecutive years. The current yield based on the new dividend is 2.29%.
Healthcare Services (HCSG) provides housekeeping, laundry, linen, facility maintenance and food services to hospitals and other health care facilities. Tuesday, the company raised its dividend by 6% to $0.19/share. The dividend is payable on August 7th to shareholders of record at the close of business July 24th. HCSG paid its first dividend in 2003 and has increased each year since then. The current yield based on the new dividend is 4.08%.
Harleysville (HARL) is a Pennsylvania-based bank holding company, with total assets of $825.7 million at September 30, 2008. Wednesday, the company boosted its quarterly dividend 5.6% to $0.19/share. The dividend is payable on August 19th to stockholders of record on August 5th. HARL is a Dividend Achiever and has increased its dividend for 22 consecutive years. The current yield based on the new dividend is 4.94%.
Landstar (LSTR) operates a family of truckload carriers using independent drivers, truck brokers, and commissioned sales agents. This week, the company increased it quarterly dividend 13% to $0.045/share. The current yield based on the new dividend is 0.52%.
Unum (UNM) is a leading provider of individual and group disability coverage was formed through the June 1999 merger of Provident Cos. and UNUM Corp. Thursday, the company raised its quarterly dividend 10% to $0.0825/share. the dividend will be paid on August 21st to stockholders of record on July 31st. The current yield based on the new dividend is 2.03%.
ONEOK (OKE) in an integrated natural gas company has an expanding energy marketing and trading business. The company boosted its quarterly dividend 5% to $0.42/share. The dividend is payable on August 14th to shareholders of record at the close of business July 31st. The current yield based on the new dividend is 5.55%.
Ryder (R) provides truck leasing and rental, logistics and supply chain management solutions worldwide. Thursday, the company raised its quarterly dividend by 8.7% to $0.25/share. The dividend is payable on September 18th to shareholders of record on August 24th. The current yield based on the new dividend is 3.74%.
All income investors appreciate more dividends to reinvest. For stocks with a long string of consecutive dividend increases, see this list.
Full Disclosure: No position in the aforementioned stock. See a list of all my income holdings here.
Tags: [AOS] [HARL] [HCSG] [LSTR] [OKE] [R] [UNM]
- 7 Stocks Delivering Higher Dividends
- Dividend Stock Analysis: Leggett & Platt, A Solid Steady Performer
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Many Americans are worried that they might not have enough money for retirement. Women who outlive their husbands are at special risk, with ...
We have all heard it... Stodgy, for old people, yawn, boring! These have all been used to describe investing in dividend growth stocks. Neve...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Linked here is a detailed quantitative analysis of AFLAC Incorporated (AFL). Below are some highlights from the above linked analysis: Co...
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "...
When to buy a stock and at what price are very important decisions. However, serious investors will tell you the most important decision is ...
Linked here is a detailed quantitative analysis of Archer Daniels Midland Company (ADM). Below are some highlights from the above linked an...