Friday, October 18, 2013

13 Companies Creating Real Wealth With Higher Cash Dividends

A stock dividend, also known as a "scrip dividend", is a dividend payment made with stock instead of cash. Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? In short, a stock dividend is nothing more than a glorified stock split. At the end of the process, the shareholder has more shares that are worth less. Like a stock split, you can not create value by issuing paper and getting nothing in exchange.

Below are several select companies that recently decided to create real value for their shareholders by raising their cash dividends:

Eaton Vance Corp. (EV) engages in the creation, marketing, and management of investment funds in the United States. October 17th the company increased its quarterly dividend 10% to $0.22 per share. The dividend is payable November 13, 2013 to shareholders of record on October 31, 2013. The yield based on the new payout is 2.2%.

A. Schulman, Inc. (SHLM) supplies plastic compounds and resins for packaging, automotive, consumer products, and industrial applications. October 17th the company increased its quarterly dividend 2.6% to $0.20 per share. The dividend is payable November 4, 2013, to shareholders of record on October 28, 2013. The yield based on the new payout is 2.6%.

Hi-Crush Partners LP (HCLP) operates as a producer of monocrystalline sand. Monocrystalline sand is a mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. October 17th the partnership increased its quarterly distribution 3.2% to $0.49 per unit. The distribution is payable November 15, 2013 to all common and subordinated unit holders of record on November 1, 2013. The yield based on the new payout is 6.6%.

Monarch Financial Holdings, Inc. (MNRK) operates as the bank holding company for Monarch Bank. October 16th the company increased its quarterly dividend payment 16.7% to $0.07 per share. The dividend is payable on November 29, 2013, to shareholders of record on November 12, 2013. The yield based on the new payout is 2.5%.

Pacific Continental Corporation (PBCK) operates as the bank holding company for Pacific Continental Bank. October 16th the company increased its quarterly dividend 11% to $0.10 per share. The dividend is payable November 12, 2013, to shareholders of record on October 28, 2013. The yield based on the new payout is 3.0%.

Kinder Morgan, Inc. (KMI) owns and operates energy transportation and storage assets in the United States and Canada. October 16th the partnership increased its quarterly distribution 2.3% to $0.41 per unit. The distribution is payable November 15, 2013, to unitholders of record on October 31, 2013. The yield based on the new payout is 4.6%.

El Paso Pipeline Partners, L.P. (EPB) engages in the ownership and operation of interstate natural gas transportation and terminaling facilities in the United States. October 16th the partnership increased its quarterly distribution 3.2% to $0.65 per share. the distribution is payable Nov. 14, 2013, to unitholders of record as of Oct. 31, 2013. The yield based on the new payout is 6.3%.

Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of health care products worldwide. October 16th the company increased its quarterly dividend 57% to $0.22 per share. The dividend is payable on Feb. 15, 2014, to shareholders of record at the close of business on Jan. 15, 2014. The yield based on the new payout is 2.5%.

B&G Foods, Inc. (BGS) engage in the manufacture, sale, and distribution of shelf-stable foods and household products in the United States, Canada, and Puerto Rico. October 15th the company increased its quarterly dividend 3.1% to $0.33 per share. The dividend is payable January 30, 2014, to shareholders of record as of December 31, 2013. The yield based on the new payout is 3.6%.

Western Refining, Inc. (WNR) operates as an independent crude oil refiner and marketer of refined products. October 15th the company increased its quarterly dividend 22.2% to $0.22 per share. The dividend is payable November 14, 2013, to shareholders of record October 30, 2013. The yield based on the new payout is 2.8%.

Omega Healthcare Investors, Inc. (OHI) operates as a real estate investment trust (REIT) in the United States. October 15th the company increased its quarterly dividend 2.1% to $0.48 per share. The dividend is payable November 15, 2013 to stockholders of record as of the close of business on October 31, 2013. The yield based on the new payout is 6.1%.

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. October 14th the partnership increased its quarterly distribution 1.5% to 0.69 per unit. The distribution is payable November 7, 2013, to unitholders of record as of the close of business on Thursday, October 31, 2013. The yield based on the new payout is 4.5%.

Northwest Natural Gas Company (NWN) stores and distributes natural gas primarily in Oregon, Washington, and California. October 11th the company increased its quarterly dividend 1.1% to $0.46 cents per share. The dividend is payable Nov. 15, 2013 to shareholders of record on Oct. 31, 2013. The yield based on the new payout is 4.4%.

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 NWN in my Dividend Growth Portfolio and long OHI in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

Related Posts
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- Asset Allocation For Income Investors
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Why We Are Dividend Growth Investors

(Photo Credit)


Tags: [ABT] [EV] [OHI] [NWN] [SHLM] [HCLP] [MNRK] [PBCK] [KMI] [EPB] [BGS] [WNR] [EPD]

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