Friday, May 9, 2014

7 Stocks Building Shareholder Returns With Higher Dividends

It's human nature for new income investors to focus on yield. Many eventually learn that above average yields often carry an above average risk of a dividend cut, loss of invested capital or both. People involved in extreme sports/hobbies, such as base jumping, hang gliding and shark diving, do things to minimize risk and protect themselves. In much the same way those investing in dividend stocks, can do certain things to increase their chance of success. One method is to focus on stocks the consistently increase their dividends.

Below are several stocks building shareholder returns through higher dividends:

Phillips 66 (PSX) operates as an energy manufacturing and logistics company. It operates in four segments: Midstream, Chemicals, Refining, Marketing and Specialties. May 7th the company increased its quarterly dividend 28% to $0.50 per share. The dividend is payable June 2, 2014 to stockholders of record on May 19, 2014. The yield based on the new payout is 2.4%.

Cardinal Health, Inc. (CAH), a healthcare services company, provides pharmaceutical and medical products and services in the United States and internationally. May 7th the company increased its quarterly dividend 13% to $0.34250 per share. The dividend is payable July 15, 2014 to stockholders of record on July 1, 2014. The yield based on the new payout is 2.1%.

PepsiCo, Inc. (PEP) operates as a food and beverage company worldwide. May 6th the company increased its quarterly dividend 15% to $0.655 per share. The dividend is payable June 30, 2014 to stockholders of record on June 6, 2014. The yield based on the new payout is 3.0%.

Microchip Technology Incorporated (MCHP) engages in developing, manufacturing, and selling semiconductor products for embedded control applications. May 6th the company increased its quarterly dividend 0.1% to $0.3555 per share. The dividend is payable June 3, 2014 to stockholders of record on May 21, 2014. The yield based on the new payout is 3.0%.

Chesapeake Utilities Corporation (CPK) operates as a diversified energy company in three segments: Regulated Energy, Unregulated Energy, and Other. May 6th the company increased its quarterly dividend 5.2% to $0.405 per share. The dividend is payable July 7, 2014 to stockholders of record on June 16, 2014. The yield based on the new payout is 2.6%.

Baxter International Inc. (BAX) develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions. May 5th the company increased its quarterly dividend 6.1% to $0.52 per share. The dividend is payable July 1, 2014 to stockholders of record on June 6, 2014. The yield based on the new payout is 2.8%.

Airgas, Inc. (ARG) supplies industrial, medical and specialty gases, and hardgoods. May 1st the company increased its quarterly dividend 15% to $0.55 per share. The dividend is payable June 30, 2014 to stockholders of record on June 13, 2014. The yield based on the new payout is 2.1%.

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

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- 9 High-Yielding Utilities With A Growing Dividends
- 3 Styles Of Successful Dividend Investing

(Photo Credit)

Tags: [PSX] [CAH] [PEP] [MCHP] [CPK] [BAX] [ARG]

1 comment:

  1. Hope your theory is workable. Buy shareholders? How does that work when dividends are dependent on earnings and somewhere in there is consumer acceptance of the brand, competition and luck?

    ReplyDelete

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