Monday, January 30, 2017

9 Stocks Pumping Up Their Yield With Increased Dividends

There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Income investors are investing for maximum current income, while dividend growth investors are looking to maximize income over an extended period of time — usually sacrificing current income for potential greater future earnings. Unlike fixed income investments, a growing dividend means a growing yield on cost.

This week several companies pumped up their shareholders' yield by increasing their cash dividends:

Comcast Corporation (CMCSA) is a media and technology company. The Company's primary businesses include Comcast Cable and NBCUniversal. January 26th the company increased its quarterly dividend 14% to $0.1575 per share. The dividend is payable April 26, 2017 to stockholders of record on April 5, 2017, with an ex-dividend date of April 3, 2017. The yield based on the new payout is 0.8%.

Valero Energy Corporation (VLO) owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. January 26th the company increased its quarterly dividend 17% to $0.70 per share. The dividend is payable March 7, 2017 to stockholders of record on February 15, 2017, with an ex-dividend date of February 13, 2017. The yield based on the new payout is 4.2%.

Welltower Inc. (HCN), formerly Health Care REIT, Inc., is a provider of healthcare infrastructure. January 26th the company increased its quarterly dividend 1.2% to $0.87 per share. The dividend is payable February 21, 2017 to stockholders of record on February 7, 2017, with an ex-dividend date of February 3, 2017. The yield based on the new payout is 5.3%.

Polaris Industries Inc. (PII) designs, engineers and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility use, snowmobiles, motorcycles and global adjacent markets vehicles, together with the related parts, garments and accessories. January 26th the company increased its quarterly dividend 5.0% to $0.58 per share. The dividend is payable March 15, 2017 to stockholders of record on March 1, 2017, with an ex-dividend date of February 27, 2017. The yield based on the new payout is 2.7%.

Sunoco Logistics Partners L.P. (SXL) owns and operates a logistics business engaged in the transport, terminalling and storage of crude oil, refined products and natural gas liquids. January 26th the partnership increased its quarterly distribution 2% to $0.52 per unit. The distribution is payable February 14, 2017 to unitholders of record on February 7, 2017, with an ex-dividend date of February 3, 2017. The yield based on the new payout is 7.8%.

Parker-Hannifin Corporation (PH) is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. January 26th the company increased its quarterly dividend 4.8% to $0.66 per share. The dividend is payable March 3, 2017 to stockholders of record on February 10, 2017, with an ex-dividend date of February 8, 2017. The yield based on the new payout is 1.8%.

Norfolk Southern Corporation (NSC) is a holding company engaged in the rail transportation business. January 25th the company increased its quarterly dividend 3.4% to $0.61 per share. The dividend is payable March 10, 2017 to stockholders of record on February 3, 2017, with an ex-dividend date of February 1, 2017. The yield based on the new payout is 2.1%.

Magellan Midstream Partners, L.P. (MMP) is engaged in the transportation, storage and distribution of refined petroleum products and crude oil. January 24th the partnership increased its quarterly distribution 2.1% to $0.855 per unit. The distribution is payable February 14, 2017 to unitholders of record on February 3, 2017, with an ex-dividend date of February 1, 2017. The yield based on the new payout is 4.4%.

Canadian National Railway Co (CNI) is engaged in the rail and related transportation business. January 24th the company increased its quarterly dividend 10% to C$0.4125 per share. The dividend is payable March 31, 2017 to stockholders of record on March 10, 2017, with an ex-dividend date of March 8, 2017. The yield based on the new payout is 1.6%.

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 CNI and PH. See a list of all my Dividend Growth Portfolio holdings here.

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- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
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Tags: CMCSA, VLO, HCN, NSC, MMP, CNI, PII, SXL, PH,

2 comments:

  1. That's quite a few increases there. Looks like a good overall outcome. Good luck.

    ReplyDelete
  2. Great list, thanks for sharing!

    I beieve that SXL and MMP are both limited partnerships? For us Canadian investors, there may be higher tax implications - something to keep in mind since those taxes could eat into (passive) income!

    ReplyDelete

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