Monday, August 14, 2017

7 Stocks Acting Like a Money Machine With Increased Dividends

Growing up in the late 60’s early 70’s, I spent a fair amount of time reading comic books. I don’t remember much about them, but I do remember several of the classic ads. Of course, there was the Charles Atlas ad where the beach bully kicked sand on the skinny boy and his girlfriend. But the ad that I remember the best was the “Magnificent Marvelous Money Machine“. It was a wooden block with some rollers in which you would put a one dollar bill in one side and a five dollar bill would come out the other.

Being very young and naive, my mom had a tough time convincing me that it was just a trick and something like that didn’t really exist. Sorry mom, but you were wrong on this one. The “Magnificent Marvelous Money Machine” does exist, but it has a different name. It is called Dividend Growth Stocks.

Below are several companies that are multiplying their shareholders return by increasing their cash dividends:

Delta Air Lines, Inc. (DAL) provides scheduled air transportation for passengers and cargo throughout the United States and across the world. Recently the company increased its quarterly dividend 51% to $0.305 per share. The dividend is payable September 13, 2017 to stockholders of record on August 23, 2017, with an ex-dividend date of August 21, 2017. The yield based on the new payout is 2.5%.

Wheaton Precious Metals Corp (WPM), formerly Silver Wheaton Corp, is a Canada-based pure precious metals streaming company engaged in the sale of silver and gold. Recently the company increased its quarterly dividend 43% to $0.10 per share. The dividend is payable September 8, 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 2.0%.

Buckeye Partners, L.P. (BPL) owns and operates a network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing and marketing of liquid petroleum products. Recently the partnership increased its quarterly distribution 1% to $1.2625 per unit. The distribution is payable August 21, 2017 to unitholders of record on August 14, 2017, with an ex-dividend date of August 10, 2017. The yield based on the new payout is 8.7%.

SunTrust Banks, Inc. (STI) is a provider of financial services. Recently the company increased its quarterly dividend 54% to $0.40 per share. The dividend is payable September 15, 2017 to stockholders of record on August 31, 2017, with an ex-dividend date of August 29, 2017. The yield based on the new payout is 2.8%.

Terra Nitrogen Company, L.P. (TNH) is a limited partnership that produces nitrogen fertilizer products. Recently the partnership increased its quarterly distribution 65% to $1.60 per unit. The distribution is payable August 29, 2017 to unitholders of record on August 15, 2017, with an ex-dividend date of August 11, 2017. The yield based on the new payout is 9.9%.

The Cheesecake Factory Incorporated (CAKE) is engaged in the restaurant and bakery business. Recently the company increased its quarterly dividend 21% to $0.29 per share. The dividend is payable August 29, 2017 to stockholders of record on August 16, 2017, with an ex-dividend date of August 14, 2017. The yield based on the new payout is 2.6%.

Pattern Energy Group Inc. (PEGI) is an independent power company holding interests in over 18 wind power projects located in the United States, Canada and Chile with total capacity of over 2,644 megawatts (MW). Recently the company increased its quarterly dividend 0.5% to $0.42 per share. The dividend is payable October 31, 2017 to stockholders of record on September 29, 2017, with an ex-dividend date of September 28, 2017. The yield based on the new payout is 6.8%.

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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- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- All Investments Carry Risk
- Warren Buffett's Two Investing Rules For Dividend Investors
- Dividend Stocks vs. Dividend ETFs
- Managing Risk With Dividend Stocks


Tags: DAL, WPM, BPL, STI, TNH, CAKE, PEGI,

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