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Friday, February 28, 2014

11 Stocks Providing An Inflation Hedge With Increasing Dividends

With all the other investment strategies out there, why should investors consider dividend or income investing? There are a multitude of reasons to follow a dividend growth strategy. These include: investment stability, security of cash, continuous feedback, potential higher returns, low maintenance, et. al. But for me the most important reason is the inflation hedge that a growing income will provide in my retirement years.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:

The Chubb Corporation (CB) provides property and casualty insurance to businesses and individuals. February 27th the company increased its quarterly dividend 13.6% to $0.50 per share. The dividend is payable April 1, 2014 to stockholders of record on February 27, 2014. The yield based on the new payout is 2.3%.

Nordstrom, Inc. (JWN), a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children. February 26th the company increased its quarterly dividend 10% to $0.33 per share. The dividend is payable March 25, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 2.2%.

Eaton Corporation plc (ETN) operates as a diversified power management company worldwide. February 26th the company increased its quarterly dividend 16.7% to $0.49 per share. The dividend is payable March 21, 2014 to stockholders of record on March 10, 2014. The yield based on the new payout is 2.6%.

Telephone and Data Systems, Inc. (TDS), a diversified telecommunications service company, provides wireless and wireline telecommunications services. February 26th the company increased its quarterly dividend 5.1% to $0.134 per share. The dividend is payable March 31, 2014 to stockholders of record on March 14, 2014. The yield based on the new payout is 2.2%.

Kimberly-Clark Corporation (KMB) manufactures and markets personal care, consumer tissue, and health care products worldwide. February 25th the company increased its quarterly dividend 3.7% to $0.84 per share. The dividend is payable April 2, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 3.1%.

The Home Depot, Inc. (HD) operates as a home improvement retailer. February 25th the company increased its quarterly dividend 20.5% to $0.47 per share. The dividend is payable March 27, 2014, to stockholders of record on March 13, 2014. The yield based on the new payout is 2.3%.

B&G Foods, Inc. (BGS) engage in the manufacture, sale, and distribution of shelf-stable foods and household products. February 24th the company increased its quarterly dividend 3% to $0.34 per share. The dividend is payable April 30, 2014 to stockholders of record on March 31, 2014. The yield based on the new payout is 4.5%.

Texas Roadhouse, Inc. (TXRH) operates a full service casual dining restaurant chain. February 24th the company increased its quarterly dividend 25% to $0.15 per share. The dividend is payable April 4, 2014 to stockholders of record on March 19, 2014. The yield based on the new payout is 2.3%.

Sempra Energy (SRE) operates as an energy services company. February 21st the company increased its quarterly dividend 4.8% to $0.66 per share. The dividend is payable April 15, 2014 to stockholders of record on March 27, 2014. The yield based on the new payout is 2.9%.

Old Republic International Corporation (ORI) engages in underwriting insurance products primarily in the United States and Canada. February 21st the company increased its quarterly dividend 1.4% to $0.1825 per share. The dividend is payable March 14, 2014 to stockholders of record on March 4, 2014. The yield based on the new payout is 4.7%.

XL GROUP Public Limited Company (XL) provides insurance and reinsurance coverages to industrial, commercial, and professional firms, as well as insurance companies and other enterprises worldwide. February 21st the company increased its quarterly dividend 28.6% to $0.18 per share. The dividend is payable March 31, 2014 to stockholders of record on March 14, 2014. The yield based on the new payout is 2.4%.

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 KMB in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.

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Tags: [KMB] [HD] [CB] [JWN] [ETN] [TDS] [BGS] [TXRH] [SRE] [ORI] [XL]

1 comment:

  1. That's a nice list of dividend increases. I find Kimberly Clark's latest dividend increase to be slightly disappointing, although I am still holding on to the stock. Given the spin-off later this year, dividend investors might receive either a second dividend hike or a larger increase next year.

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