Monday, April 24, 2017

10 Stocks Turbo-Charging Returns With Increasing Dividends

It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.

Here are several companies looking to increase their long-term returns by raising their cash dividends:

American Water Works Company, Inc. (AWK) is a holding company for regulated and market-based subsidiaries throughout the United States and Ontario, Canada. Recently the company increased its quarterly dividend 11% to $0.415 per share. The dividend is payable June 1, 2017 to stockholders of record on May 5, 2017, with an ex-dividend date of May 3, 2017. The yield based on the new payout is 2.1%.

The Blackstone Group L.P. (BX) is a global alternative asset manager. The Company's alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. Recently the partnership increased its quarterly distribution 85% to $0.87 per unit. The distribution is payable May 8, 2017 to unitholders of record on May 1, 2017, with an ex-dividend date of April 27, 2017. The yield based on the new payout is 11.6%.

CSX Corporation (CSX) is a transportation company that provides rail-based freight transportation services, including traditional rail service and transport of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. Recently the company increased its quarterly dividend 11% to $0.20 per share. The dividend is payable June 15, 2017 to stockholders of record on May 31, 2017, with an ex-dividend date of May 26, 2017. The yield based on the new payout is 1.7%.

Magellan Midstream Partners, L.P. (MMP) is principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. Recently the partnership increased its quarterly distribution 2% to $0.8725 per unit. The distribution is payable May 15, 2017 to unitholders of record on May 1, 2017, with an ex-dividend date of April 27, 2017. The yield based on the new payout is 4.6%.

Regions Financial Corporation (RF) is a financial holding company that conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank. Recently the company increased its quarterly dividend 7.7% to $0.07 per share. The dividend is payable June 30, 2017 to stockholders of record on June 9, 2017, with an ex-dividend date of June 7, 2017. The yield based on the new payout is 2.1%.

Phillips 66 Partners LP (PSXP) owns, operates, develops and acquires fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines, terminals and other transportation and midstream assets. Recently the partnership increased its quarterly distribution 5% to $0.586 per unit. The distribution is payable May 12, 2017 to unitholders of record on May 1, 2017, with an ex-dividend date of April 27, 2017. The yield based on the new payout is 4.5%.

The Goldman Sachs Group, Inc. (GS) is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. Recently the company increased its quarterly dividend 15% to $0.75 per share. The dividend is payable June 29, 2017 to stockholders of record on June 1, 2017, with an ex-dividend date of May 30, 2017. The yield based on the new payout is 1.3%.

Whirlpool Corporation (WHR) is a manufacturer and marketer of home appliances. Recently the company increased its quarterly dividend 10% to $1.10 per share. The dividend is payable June 15, 2017 to stockholders of record on May 19, 2017, with an ex-dividend date of May 17, 2017. The yield based on the new payout is 2.6%.

The Southern Company (SO) owns all of the stock of the traditional electric operating companies and the parent entities of Southern Power Company (Southern Power) and Southern Company Gas, and owns other direct and indirect subsidiaries. Recently the company increased its quarterly dividend 3.6% to $0.58 per share. The dividend is payable June 6, 2017 to stockholders of record on June 15, 2017, with an ex-dividend date of June 11, 2017. The yield based on the new payout is 4.7%.

Aon plc (AON) is a provider of risk management services, insurance and reinsurance brokerage, and human resource (HR) consulting and outsourcing. Recently the company increased its quarterly dividend 9.1% to $0.36 per share. The dividend is payable May 15, 2017 to stockholders of record on May 1, 2017, with an ex-dividend date of April 27, 2017. The yield based on the new payout is 1.2%.

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 SO in my High-Yield portfolio. See a list of all my Dividend Growth Portfolio holdings here.

Related Articles
- The 2016 Elite Dividend Stocks List
- 7 Dividend Stocks With A Good Yield And Growth Balance
- 3 High-Yield Dividend Achievers With 25 Years of Increases
- 17 Investments That Pay Monthly Dividends.
- 5 Dividend Stocks To Build Your Future Security

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Tags: GS, BX, SO, CSX, MMP, RF, AWK, WHR, PSXP, AON,

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