Monday, July 4, 2016

5 Stocks Enriching Their Shareholders With Higher Dividends

When evaluating a company as a potential income investment you look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared to alternative “safe” investments. The advantages dividend stocks have over "safe" investments are potential capital appreciation and dividend growth. Not only are your earnings compounding, but the rate of earnings is growing.

Below are several companies giving their shareholders a raise with increased cash dividends:

Darden Restaurants, Inc. (DRI) owns and operates approximately 1,500 full-service restaurants in the United States and Canada including Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's and Yard House brand names. June 30th the company increased its quarterly dividend 12% to $0.56 per share. The dividend is payable August 1, 2016 to stockholders of record on July 11, 2016, with an ex-dividend date of July 7, 2016. The yield based on the new payout is 3.4%.

KeyCorp (KEY) operates as the bank holding company for KeyBank National Association that provides various retail and commercial banking services to individual, corporate, and institutional clients in the United States. On June 29th the company announced that the Federal Reserve did not object to Key's proposed capital plan which included common share repurchase program of up to $350 million and an increase in the quarterly common share dividend from $0.085 per share up to $0.095 per share. The yield based on the increased payout is 3.4%.

SunTrust Banks, Inc. (STI) operates as the holding company for SunTrust Bank that provides various financial services for consumers, businesses, corporations, and institutions in the United States. On June 29th the company announced that the Federal Reserve did not object to Key's proposed capital plan which included an 8% increase in the quarterly common stock dividend from $0.24 per share to $0.26 per share, beginning in the third quarter of 2016 and authorization to repurchase $960 million of outstanding common stock between July 1, 2016 and June 30, 2017. The yield based on the increased payout is 2.5%.

General Mills, Inc. (GIS) manufactures and markets branded consumer foods in the United States and internationally. It also supplies branded and unbranded food products to the foodservice and commercial baking industries. June 29th the company increased its quarterly dividend 4.3% to $0.48 per share. The dividend is payable August 1, 2016 to stockholders of record on July 11, 2016, with an ex-dividend date of July 7, 2016. This is the second consecutive quarter that GIS raised its dividend. The yield based on the new payout is 2.9%.

Worthington Industries, Inc. (WOR), a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the United States, Europe, Mexico, Canada, and internationally. June 29th the company increased its quarterly dividend 5.3% to $0.20 per share. The dividend is payable September 29, 2016 to stockholders of record on September 15, 2016, with an ex-dividend date of September 13, 2016. 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.

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- Three Keys For Successful Dividend Growth Investing
- 5 Exceptional Dividend Growth Stocks With Quality Financials
- 10 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- 8 Dividend Stocks With A Quick Payback
- 7 High-Rated Dividend Stocks With Above Target Returns


Tags: DRI, KEY, STI, GIS, WOR,

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