Monday, June 12, 2017

6 Stocks Raising Their Yield On Cost With Higher Dividends

For dividend growth investors, there are certain attributes of investments that are more relevant than others, such as yield and dividend growth. To illustrate the power of dividend growth consider that an investment's yield-on-cost will double every 5 years if they grow their dividend by 15%/year or 7 years at 10%/year or 14 years at 5%/year.

This week several companies took a step toward doubling their shareholders yield-on-cost by increasing their cash dividends:

UnitedHealth Group Incorporated (UNH) is a health and well-being company. Recently the company increased its quarterly dividend 20% to $0.75 per share. The dividend is payable June 27, 2017 to stockholders of record on June 19, 2017, with an ex-dividend date of June 15, 2017. The yield based on the new payout is 1.7%.

PetroChina Company Limited (PTR) is a China-based company principally engaged in the production and distribution of oil and gas. Recently the company increased its semi-annual dividend 77% to $0.4756 per share. The dividend is payable August 7, 2017 to stockholders of record on June 14, 2017, with an ex-dividend date of June 12, 2017. The yield based on the new payout is 1.3%.

Global Payments Inc. (GPN) provides payment and digital commerce solutions. Recently the company increased its quarterly dividend 33% to $0.0133 per share. The dividend is payable June 23, 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 0.1%.

Legg Mason, Inc. (LM) is engaged in providing asset management and related financial services to individuals, institutions, corporations and municipalities. Recently the company increased its quarterly dividend 27% to $0.22 per share. The dividend is payable July 10, 2017 to stockholders of record on June 13, 2017, with an ex-dividend date of June 9, 2017. The yield based on the new payout is 2.9%.

Universal Health Realty Income Trust (UHT) is a real estate investment trust that invests in healthcare and human service related facilities. Recently the company increased its quarterly dividend 0.8% to $0.66 per share. The dividend is payable June 30, 2017 to stockholders of record on June 19, 2017, with an ex-dividend date of June 15, 2017. The yield based on the new payout is 3.6%.

Alexandria Real Estate Equities, Inc. (ARE) is a real estate investment trust engaged in the business of providing space for lease to the life science and technology industries. Recently the company increased its quarterly dividend 3.6% to $0.86 per share. The dividend is payable July 17, 2017 to stockholders of record on June 30, 2017, with an ex-dividend date of June 28, 2017. The yield based on the new payout is 2.9%.

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

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Tags: UNH, PTR, GPN, LM, UHT, ARE,

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