Monday, September 18, 2017

7 Stocks Avoiding A September Freeze With Increased Dividends

For a dividend investor, there is not much worse than a stock that cuts or eliminates its dividend. Suddenly, the reason you purchased the stock no longer exists. Many dividend investors, myself included, have a hard and fast rule to immediately sell any stock held as income investment if it cuts its dividend. However, when a company freezes its dividend at the current rate, the decision is not as clear-cut. At this point you must look at alternative investments, along with the company’s current yield and future outlook.

Here are a few select companies that have avoided a December freeze by increasing the cash dividends paid to their shareholders:

Realty Income Corporation (O) is a real estate investment trust that is engaged in in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology and capital markets capabilities. Recently the company increased its monthly dividend 0.2% to $0.212 per share. The dividend is payable October 13, 2017 to stockholders of record on October 2, 2017, with an ex-dividend date of September 29, 2017. The yield based on the new payout is 4.3%.

American Tower Corporation (AMT) operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. Recently the company increased its quarterly dividend 3.1% to $0.66 per share. The dividend is payable October 17, 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 1.8%.

Restaurant Brands International Inc. (QSR) is a quick service restaurant company with over over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons and Burger King. Recently the company increased its quarterly dividend 5.3% to $0.20 per share. The dividend is payable October 3, 2017 to stockholders of record on September 15, 2017, with an ex-dividend date of September 14, 2017. The yield based on the new payout is 1.3%.

Leucadia National Corporation (LUK) is a diversified holding company focused on return on investment and long-term value. Recently the company increased its quarterly dividend 60% to $0.10 per share. The dividend is payable September 29, 2017 to stockholders of record on September 18, 2017, with an ex-dividend date of September 15, 2017. The yield based on the new payout is 1.7%.

Invesco Mortgage Capital Inc. (IVR) invests in residential mortgage-backed securities that are guaranteed by the United States Government. Recently the company increased its quarterly dividend 2.5% to $0.41 per share. The dividend is payable October 26, 2017 to stockholders of record on September 27, 2017, with an ex-dividend date of September 26, 2017. The yield based on the new payout is 9.8%.

STORE Capital Corporation (STOR) is an internally managed net-lease real estate investment trust that is engaged in the acquisition, investment and management of single tenant operational real estate properties. Recently the company increased its quarterly dividend 6.9% to $0.31 per share. The dividend is payable October 16, 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 4.8%.

InterDigital, Inc. (IDCC) designs and develops technologies for wireless communications. Recently the company increased its quarterly dividend 17% to $0.35 per share. The dividend is payable October 25, 2017 to stockholders of record on October 11, 2017, with an ex-dividend date of October 10, 2017. The yield based on the new payout is 2.0%.

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

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- The Dark Side of Dividends
- 7 Higher Yielders With A Low Free Cash Flow Payout
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- 4 Dividend Stocks For A Confident And Secure Future
- To Infinity and Beyond!

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Tags: O, AMT, QSR, LUK, IVR, STOR, IDCC,

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