Friday, April 12, 2013

5 Dividend Stocks Acting Like a Money Machine

Readers of this space know that the primary focus of my income portfolio is to create ever-increasing income money machine by investing in dividend growth stocks. This means that often I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. As one that values diversity, I also invest in some high yield securities. However, any dividend stock that I invest in must have an increasing dividend.

Below are companies that have recently made their shareholders take notice with higher cash dividends:

Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the United States and internationally. April 9th the partnership increased its quarterly distribution 1.5% to $0.67 per share. The distribution is payable May 7, 2013, to unitholders of record as of the close of business on Tuesday, April 30, 2013. The yield based on the new payout is 4.4%.

The Bank of New York Mellon Corporation (BK) provides various financial products and services worldwide. April 9th the company increased its quarterly dividend 15% to $0.15 per share. The dividend is payable May 7, 2013 to shareholders of record as of the close of business on April 29, 2013. The yield based on the new payout is 2.2%.

Plains All American Pipeline, L.P. (PAA) engages in the transportation, storage, terminalling, and marketing of crude oil and refined products in the United States and Canada. April 8th the company increased its quarterly distribution 2.2% to $0.5750 per unit. The distribution is payable May 15, 2013 to unit holders of at the close of business on May 3, 2013. The yield based on the new payout is 4.1%.

Select Income REIT (SIR) is a real estate company formed to primarily own and invest in net leased, single tenant properties. April 8th the company increased its quarterly dividend 4.8% to $0.44 per share. The dividend is payable May 20, 2013 to shareholders of record April 23, 2013. The yield based on the new payout is 6.3%.

MV Oil Trust (MVO) owns net profits interest in oil and natural gas properties of MV Partners, LLC. April 5th the partnership increased its quarterly distribution 28% to $0.68 per share. The distribution is payable April 25, 2013 to unit holders of record April 15, 2013. The yield based on the new payout is 9.7%.

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: No position in the aforementioned securities. See a list of all my dividend growth holdings here.

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- The 2013 Dividend Achievers
- 5 Stocks With A Strong Cash To Dividend Coverage
- Dividend Stocks Are My Conviction
- Are The Dividends Safe For These High-Yielding Stocks?
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Tags: [EPD] [BK] [PAA] [SIR] [MVO]

2 comments:

  1. MVO is set to expire in 2026 from what I have read. This means this investment is worth $0 at that time:

    http://seekingalpha.com/article/1048871-computing-mv-oil-trust-s-q4-distribution-solid-returns

    Important to be aware of that - not easy to find that info...

    Thanks for all your writings - have found great dividend growth stocks by reading you!!!

    ReplyDelete
  2. I love EPD, they keep rewarding me with higher distributions every quarter. They also have a sustainable distribution coverage.

    As for MVO, most trusts that expire might have some sort of a terminal value. With improvements in technology, it could be possible to extract some oil and possibly even lengthen the lifespan of oil and gas fields. This would mean that the assets might have some value left in 2026.. However chances are that the amount of oil pumped out will decrease..

    ReplyDelete

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