Monday, November 28, 2016

6 Stocks With A Vision Of Higher Dividends

To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise their dividend. No Board member or CEO of this type of company wants a dividend cut to occur on their watch.

Here are a few select companies that have recently followed through on their vision of providing increased cash dividends to their shareholders:

Aircastle Limited (AYR) is a holding company. The Company, through its subsidiaries, is engaged in investing in aviation assets, including acquiring, leasing, managing and selling utility commercial jet aircraft. November 25th the company increased its quarterly dividend 8.3% to $0.26 per share. The dividend is payable December 15, 2016 to stockholders of record on November 29, 2016, with an ex-dividend date of November 25, 2016. The yield based on the new payout is 4.6%.

Aramark (AEMK) provides food, facilities and uniform services to education, healthcare, business and industry, and sports, leisure and corrections clients. November 23rd the company increased its quarterly dividend 8.4% to $0.103 per share. The dividend is payable December 8, 2016 to stockholders of record on November 28, 2016, with an ex-dividend date of November 23, 2016. The yield based on the new payout is 1.2%.

Merck & Co., Inc. (MRK) is a global healthcare company. The Company offers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products, which it markets directly and through its joint ventures. November 22nd the company increased its quarterly dividend 2.2% to $0.47 per share. The dividend is payable January 9, 2017 to stockholders of record on December 15, 2016, with an ex-dividend date of December 13, 2016. The yield based on the new payout is 3.1%.

Roper Technologies, Inc. (ROP) is a technology company that operates businesses that design and develop software and engineered products and solutions for a range of end markets, including healthcare, transportation, food, energy, water, education and academic research. November 22nd the company increased its quarterly dividend 17% to $0.35 per share. The dividend is payable January 23, 2017 to stockholders of record on January 9, 2017, with an ex-dividend date of January 5, 2017. The yield based on the new payout is 0.8%.

Becton, Dickinson and Company (BDX) is a global medical technology company engaged in the development, manufacture and sale of a range of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. November 21th the company increased its quarterly dividend 11% to $0.73 per share. The dividend is payable December 30, 2016 to stockholders of record on December 9, 2016, with an ex-dividend date of December 7, 2016. The yield based on the new payout is 1.7%.

Hormel Foods Corporation (HRL) is a multinational manufacturer and marketer of food and meat products. November 21th the company increased its quarterly dividend 17% to $0.17 per share. The dividend is payable February 15, 2017 to stockholders of record on January 17, 2017, with an ex-dividend date of January 12, 2017. The yield based on the new payout is 2.0%.

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 Portfolio holdings here.

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Tags: MRK, BDX, HRL, AYR, ROP, ARMK,

1 comment:

  1. Some unique stocks in this list I haven't seen before. I didn't even know Aramark was a public company!

    TheDividendLife.com

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