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Friday, August 12, 2011

9 Dividend Stocks Raising Their Yield On Cost

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 5 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) manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories. August 10th the company increased its quarterly dividend 50% to $0.15 per share. The dividend is payable on October 14, 2011 to stockholders of record on September 30, 2011. The yield based on the new payout is 3.3%.

Acme United Corporation (ACU) develops and markets cutting, measuring, and safety products to the school, home, office, hardware, and industrial markets. August 10th the company increased its quarterly dividend 17% to $0.07 per share. The dividend is payable on October 24, 2011 to stockholders of record on the close of business on October 3, 2011. The yield based on the new payout is 3.0%.

Kaman Corporation (KAMN) operates in the aerospace and industrial distribution markets. August 9th the company increased its quarterly dividend 14% to $0.16 per share. The dividend is payable October 24, 2011 to shareholders of record on October 10, 2011. The yield based on the new payout is 1.8%.

Primoris Services Corporation (PRIM), a specialty contractor and infrastructure company, provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and product engineering services. August 9th increased its dividend 20% to $0.03 per share. The dividend is payable on or about October 14, 2011 to stockholders of record as of September 30, 2011. The yield based on the new payout is 1.2%.

Chemed Corporation (CHE), through its subsidiaries, provides hospice care, and repair and cleaning services in the United States. August 8th the company increased its quarterly dividend 14.3% to $0.14 per share. The dividend is payable on September 6, 2011, to shareholders of record as of August 18, 2011. The yield based on the new payout is 1.1%.

Harleysville Group Inc. (HGIC) engages in the property and casualty insurance business primarily in the eastern and midwestern United States. August 5th the company increased its quarterly dividend 6% to to $0.38 per share. The dividend is payable September 30, 2011, to shareholders of record on September 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), through its subsidiaries, operates as a regulated water company in Connecticut. August 5th 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 September 1, 2011. The yield based on the new payout is 3.5%.

Illinois Tool Works Inc. (ITW) manufactures a range of industrial products and equipment worldwide. August 5th the company increased its quarterly dividend 6% to $0.36 cents per share. The dividend is payable October 12, 2011 to stockholders of record on Friday, September 30, 2011. The yield based on the new payout is 3.2%.

Eastman Chemical Company (EMN), a chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers. August 5th 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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(Photo Credit)

Tags: [THO] [ACU] [KAMN] [PRIM] [CHE] [HGIC] [CTWS] [ITW] [EMN]

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