Monday, July 31, 2017

7 Stocks Delivering What's Important: Dividend Increases

We all know what surprising The Street will do to a stock’s price - just ask Wal-Mart (WMT). The street focuses on quarterly revenue, EPS, EBIT, EBITDA and margins. The income statement is where you find all the metrics that The Street loves. It therefore must be the most important financial statement. Not! That title goes to the lowly cash flow statement. Ultimately cash flow is what drives the value of any financial asset, including dividend stocks.

This week several companies provided their shareholders with a special delivery in the form of higher cash dividends:

Wells Fargo & Company (WFC) is a bank holding company and a diversified financial services company. Recently the company increased its quarterly dividend 2.6% to $0.39 per share. The dividend is payable September 1, 2017 to stockholders of record on August 4, 2017, with an ex-dividend date of August 2, 2017. The yield based on the new payout is 2.8%.

Energy Transfer Partners, L.P. (ETP) is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). Recently the partnership increased its quarterly distribution 2.8% to $0.55 per unit. The distribution is payable August 14, 2017 to unitholders of record on August 7, 2017, with an ex-dividend date of August 3, 2017. The yield based on the new payout is 10.8%.

Kellogg Company (K) is a manufacturer and marketer of ready-to-eat cereal and convenience foods. Recently the company increased its quarterly dividend 3.8% to $0.54 per share. The dividend is payable September 15, 2017 to stockholders of record on September 1, 2017, with an ex-dividend date of August 30, 2017. The yield based on the new payout is 3.2%.

Marathon Petroleum Corporation (MPC) is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. Recently the company increased its quarterly dividend 11% to $0.40 per share. The dividend is payable September 11, 2017 to stockholders of record on August 16, 2017, with an ex-dividend date of August 17, 2017. The yield based on the new payout is 2.9%.

The Hershey Company (HSY) is a producer of chocolate in North America. Recently the company increased its quarterly dividend 6.1% to $0.656 per share. The dividend is payable September 15, 2017 to stockholders of record on August 25, 2017, with an ex-dividend date of August 23, 2017. The yield based on the new payout is 2.4%.

McKesson Corporation (MCK) is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. Recently the company increased its quarterly dividend 21% to $0.34 per share. The dividend is payable October 2, 2017 to stockholders of record on September 1, 2017, with an ex-dividend date of August 30, 2017. The yield based on the new payout is 0.8%.

Discover Financial Services (DFS) is a direct banking and payment services company. Recently the company increased its quarterly dividend 17% to $0.35 per share. The dividend is payable September 7, 2017 to stockholders of record on August 24, 2017, with an ex-dividend date of August 22, 2017. The yield based on the new payout is 2.2%.

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: No position in the aforementioned securities. See a list of all my Dividend Growth Portfolio holdings here.

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Tags: WFC, ETP, K, MPC, HSY, MCK, DFS,

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