Monday, March 13, 2017

8 Stocks Beating Inflation With Higher Dividends

Investing in dividend growth stocks is not about buying a current high yield, but instead building a high yield-on-cost over time. One of the criticisms I sometimes is, "That low yield isn't even covering inflation." This is a very valid concern, if true. The way many low yielding stocks yields compensate for inflation is by growing their dividend well in excess of the inflation rate.

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

Domino's Pizza, Inc. (DPZ) is a pizza restaurant chain operating pizza stores at 12,500 locations in over 80 markets. March 10th the company increased its quarterly dividend 21% to $0.46 per share. The dividend is payable March 30, 2017 to stockholders of record on March 15, 2017, with an ex-dividend date of March 13, 2017. The yield based on the new payout is 1.0%.

Colgate-Palmolive Company (CL) is a consumer products company, whose products are marketed in over 200 countries and territories throughout the world. March 9th the company increased its quarterly dividend 2.6% to $0.40 per share. The dividend is payable May 15, 2017 to stockholders of record on April 21, 2017, with an ex-dividend date of April 19, 2017. The yield based on the new payout is 2.2%.

American Tower Corporation (AMT) is a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. March 9th the company increased its quarterly dividend 6.9% to $0.62 per share. The dividend is payable April 28, 2017 to stockholders of record on April 12, 2017, with an ex-dividend date of April 10, 2017. The yield based on the new payout is 2.2%.

Frontline Ltd. (FRO) is a shipping company that is engaged in the seaborne transportation of crude oil and oil products. March 7th the company increased its quarterly dividend 50% to $0.15 per share. The dividend is payable March 23, 2017 to stockholders of record on March 13, 2017, with an ex-dividend date of March 9, 2017. The yield based on the new payout is 8.8%.

Kimberly-Clark Corporation (KMB) is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers. March 7th the company increased its quarterly dividend 5.4% to $0.97 per share. The dividend is payable April 4, 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 2.9%.

Ross Stores, Inc. (ROST) is an off-price retailer of name brand and designer apparel, accessories, footwear, and home fashions for the entire family. March 7th the company increased its quarterly dividend 18% to $0.16 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 1.0%.

The Home Depot, Inc. (HD) is a home improvement retailer selling an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. March 6th the company increased its quarterly dividend 29% to $0.89 per share. The dividend is payable March 23, 2017 to stockholders of record on March 9, 2017, with an ex-dividend date of March 7, 2017. The yield based on the new payout is 2.4%.

Expedia, Inc. (EXPE) is an online travel company. March 6th the company increased its quarterly dividend 7.7% to $0.28 per share. The dividend is payable March 30, 2017 to stockholders of record on March 9, 2017, with an ex-dividend date of March 7, 2017. The yield based on the new payout is 0.9%.

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, CL in my Dividend Growth Stocks Portfolio. See a list of all my Dividend Growth Portfolio holdings here.

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(Photo Credit)


Tags: HD, KMB, CL, AMT, EXPE, FRO, ROST, DPZ,

1 comment:

  1. Always happy to receive a raise. That's part of what DGI is all about. Thanks for sharing.

    ReplyDelete

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