hold the stock forever. I am not smart enough to time the daily gyrations of the stock market.
When stock prices start dropping, our primal instinct of flight kicks in and we want to sell. In many cases that is the time to be buying. However, sometimes selling a stock is the right thing to do. In determining when to sell a dividend stock, I have one hard and fast rule: When an individual stock held as a dividend investment lowers its dividend, immediately sell it.
Below are several companies making the case not to be sold by raising their cash dividends:
CVS Caremark Corporation (CVS) operates as a pharmacy services company in the United States. December 20 the company increased its quarterly dividend 30% to $0.1625 per share. The dividend is payable on February 2, 2012, to stockholders of record on January 23, 2012. The yield based on the new payout is 1.6%.
Washington Federal, Inc. (WSFL) operates as the holding company for Washington Federal, which provides various financial services in the United States. December 19th the company increased its quarterly dividend 33% to $0.08 per share. The dividend is payable on January 13, 2012 to common stockholders of record on December 30, 2011. The yield based on the new payout is 2.4%.
Crexus Investment Corp. (CXS) operates as a specialty finance company in the United States. December 19th the company increased its quarterly dividend 16.7% to $0.35 per share. This dividend is payable January 26, 2012 to common shareholders of record on December 29, 2011. The ex-dividend date is December 27, 2011. The yield based on the new payout is 13.3%.
AT&T Inc. (T) provides telecommunication services to consumers, businesses, and other service providers worldwide. December 16th the company increased its quarterly dividend 2.3% to $0.44 per share. The dividend is payable on Feb. 1, 2012 to common stockholders of record on Jan. 10, 2012. The yield based on the new payout is 6.1%.
The Andersons, Inc. (ANDE) engages in the grain, ethanol, plant nutrient, railcar leasing and repair, turf products production, and general merchandise retailing businesses. December 16th the company increased its quarterly dividend 36% to $0.15 per share. The dividend is payable January 24, 2012, to shareholders of record on January 3, 2012. The yield based on the new payout is 1.4%.
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 T (Dividend Growth Portfolio). See a list of all my dividend growth holdings here.
- 38 Dividend Securities For A Well-Rounded Asset Allocation
- Five High-Yield Positive Return Investments
- Dividend Stocks: Three Keys For Successful Investing
- 10 Stocks With 100+ Years of Dividend Payments
- 10 Dividend Stocks With Above Target Returns
Tags: [T] [CVS] [CXS] [WSFL] [ANDE]
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...
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...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Inco...
Investing in dividend growth stocks is a long-term proposition. One of the beauties of following a dividend growth strategy is that you don...
Dividends are not paid with sales, earnings, EPS, EBIT or EBITDA. Instead dividends are paid with cash. As an investor, you want to pay clos...
Linked here is a detailed quantitative analysis of Illinois Tool Works Inc. (ITW). Below are some highlights from the above linked analysis...
There is perceived safety in size . Giant corporations aren't randomly grown. Instead, they are carefully built through superior manag...
D4L-Premium Services is designed to provide the busy dividend growth investor with a wealth of relevant information. Each week the D4L-Prem...
Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confus...