Monday, August 28, 2017

6 Companies Providing Shareholders More Cash Through Increased Dividends

In the U.S. and Canada, most companies pay dividends quarterly. In other parts of the world, it is not uncommon for companies to pay an annual or a semi-annual dividend. That is not to say that North American companies sometimes choose not to pay quarterly dividends. For many years McDonald’s (MCD) paid an annual dividend. Walt Disney Co. (DIS) paid an annual dividend through 2014 and in July 2015 started paying a semi-annual dividend. Going in the other direction, Realty Income Corp. (O) pays a monthly dividend.

Though I prefer quarterly dividends, there is something more important than frequency -- dividend increases. Below are several companies satisfying their shareholders desire for more cash by increasing their dividends:

Royal Bank of Canada (RY), is a diversified financial services company providing personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. Recently the company increased its quarterly dividend 4.6% to C$0.91 per share. The dividend is payable November 24, 2017 to stockholders of record on October 26, 2017, with an ex-dividend date of October 25, 2017. The yield based on the new payout is 4.0%.

Expedia, Inc. (EXPE) is an online travel company. Recently the company increased its quarterly dividend 7.1% to $0.30 per share. The dividend is payable September 14, 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 0.8%.

Harris Corporation (HRS) is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. Recently the company increased its quarterly dividend 7.5% to $0.57 per share. The dividend is payable September 22, 2017 to stockholders of record on September 8, 2017, with an ex-dividend date of September 7, 2017. The yield based on the new payout is 1.9%.

Martin Marietta Materials, Inc. (MLM) is a supplier of aggregates products (crushed stone, sand, and gravel) used for the construction of infrastructure, nonresidential, and residential projects. Recently the company increased its quarterly dividend 5% to $0.44 per share. The dividend is payable September 29, 2017 to stockholders of record on September 5, 2017, with an ex-dividend date of August 31, 2017. The yield based on the new payout is 0.9%.

Newtek Business Services Corp. (NEWT) is an internally managed non-diversified closed-end management investment company. Recently the company increased its quarterly dividend 10% to $0.44 per share. The dividend is payable September 29, 2017 to stockholders of record on September 22 2017, with an ex-dividend date of September 21, 2017. The yield based on the new payout is 10%.

Westlake Chemical Corporation (WLK) is a global manufacturer and marketer of basic chemicals, vinyls, polymers and building products. Recently the company increased its quarterly dividend 10% to $0.21 per share. The dividend is payable September 18, 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 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: No position in the aforementioned securities. See a list of all my Dividend Growth Portfolio holdings here.

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Tags: RY, EXPE, HRS, MLM, NEWT, WLK,

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