Monday, July 17, 2017

8 Stocks Building A Higher Yield On Cost With Increased Dividends

Most casual income investors focus on current yield, which is important. However, if your objective as an income investor is to build a portfolio of securities with increasing income, then Yield on Cost is an excellent metric to measure your progress. Yield on Cost is simply the annual dividend rate times number of shares owned divided by what you paid for the investment (basis). As companies increase their dividend, your yield-on-cost goes up.

Working to increase their shareholders Yield on Cost, these companies recently announced higher cash dividend payments:

Walgreens Boots Alliance, Inc. (WBA) is a pharmacy-led health and well-being company. Recently the company increased its quarterly dividend 6.7% to $0.40 per share. The dividend is payable September 12, 2017 to stockholders of record on August 18, 2017, with an ex-dividend date of August 16, 2017. The yield based on the new payout is 2.1%.

Omega Healthcare Investors, Inc. (OHI) is a self-administered real estate investment trust that maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. Recently the company increased its quarterly dividend 1.6% to $0.64 per share. The dividend is payable August 15, 2017 to stockholders of record on August 1, 2017, with an ex-dividend date of July 28, 2017. The yield based on the new payout is 7.8%.

Occidental Petroleum Corporation (OXY) is an oil and gas exploration and production company. Recently the company increased its quarterly dividend 1.3% to $0.77 per share. The dividend is payable October 16, 2017 to stockholders of record on September 11, 2017, with an ex-dividend date of September 7, 2017. The yield based on the new payout is 5.2%.

Cummins Inc. (CMI) designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. Recently the company increased its quarterly dividend 5.4% to $1.08 per share. The dividend is payable September 1, 2017 to stockholders of record on August 18, 2017, with an ex-dividend date of August 16, 2017. The yield based on the new payout is 29%.

National Retail Properties, Inc. (NNN) is a real estate investment trust that acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment. Recently the company increased its quarterly dividend 4.4% to $0.475 per share. The dividend is payable August 15, 2017 to stockholders of record on July 31, 2017, with an ex-dividend date of July 27, 2017. The yield based on the new payout is 4.9%.

Ryder System, Inc. (R) is engaged in offering transportation and supply chain management solutions. Recently the company increased its quarterly dividend 4.5% to $0.46 per share. The dividend is payable September 1, 2017 to stockholders of record on August 21, 2017, with an ex-dividend date of August 17, 2017. The yield based on the new payout is 2.5%.

Genesis Energy L.P. (GEL) is a limited partnership focused on the midstream segment of the oil and gas industry. Recently the partnership increased its quarterly distribution 0.3% to $0.7225 per unit. The distribution is payable August 14, 2017 to unitholders of record on July 31, 2017, with an ex-dividend date of July 27, 2017. The yield based on the new payout is 9.3%.

Gladstone Land Corporation (LAND) is an agricultural real estate investment trust that is engaged in the business of owning and leasing farmland. Recently the company increased its quarterly dividend 2.3% to $0.44 per share. The dividend is payable July 31, 2017 to stockholders of record on July 21, 2017, with an ex-dividend date of July 19, 2017. The yield based on the new payout is 4.6%.

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 OHI, CMI, NNN. See a list of all my Dividend Growth Portfolio holdings here.

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Tags: WBA, OHI, OXY, CMI, NNN, R, GEL, LAND,

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