Monday, October 30, 2017

6 Stocks Raising Dividends and Expectations

I am not a stock trader; I am a dividend and value based long-term buy-and-hold investor. When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. I am not smart enough to time the daily gyrations of the stock market. When stock prices start dropping, our primal instinct of flight kicks in and we want to sell. In many cases that is the time to be buying. However, sometimes selling a stock is the right thing to do. In determining when to sell a dividend stock, I have one hard and fast rule: When an individual stock held as a dividend investment lowers its dividend, immediately sell it.

Below are several companies making the case not to be sold by raising their cash dividends:

Aflac Incorporated (AFL) is involved in supplemental health and life insurance. Recently the company increased its quarterly dividend 4.7% to $0.45 per share. The dividend is payable December 1, 2017 to stockholders of record on November 15, 2017, with an ex-dividend date of November 14, 2017. The yield based on the new payout is 2.1%.

Energy Transfer Partners, L.P. (ETP), formerly Sunoco Logistics Partners L.P., owns and operates a logistics business that is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids. Recently the partnership increased its quarterly distribution 2.7% to $0.565 per unit. The distribution is payable November 14, 2017 to unitholders of record on November 7, 2017, with an ex-dividend date of November 6, 2017. The yield based on the new payout is 13.6%.

V.F. Corporation (VFC) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. Recently the company increased its quarterly dividend 9.5% to $0.46 per share. The dividend is payable December 18, 2017 to stockholders of record on December 8, 2017, with an ex-dividend date of December 7, 2017. The yield based on the new payout is 2.8%.

American Electric Power Company, Inc. (AEP) is a public utility holding company. Recently the company increased its quarterly dividend 5.1% to $0.62 per share. The dividend is payable December 8, 2017 to stockholders of record on November 10, 2017, with an ex-dividend date of November 9, 2017. The yield based on the new payout is 3.4%.

Agnico Eagle Mines Limited (AEM) is a gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. Recently the company increased its quarterly dividend 10% to $0.10 per share. The dividend is payable December 15, 2017 to stockholders of record on December 1, 2017, with an ex-dividend date of November 30, 2017. The yield based on the new payout is 1.0%.

Iron Mountain Incorporated (IRM) is a holding company. The Company stores records, primarily physical records and data backup media, and provides information management services in various ocations throughout North America, Europe, Latin America, Asia Pacific and Africa. Recently the company increased its quarterly dividend 6.8% to $0.5875 per share. The dividend is payable January 2, 2017 to stockholders of record on December 15, 2017, with an ex-dividend date of December 14, 2017. The yield based on the new payout is 5.9%.

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

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Tags: AFL, ETP, VFC, AEP, AEM, IRM,

1 comment:

  1. AFL is a very interesting choice. As I only have a small holding in the Insurance sector I might be adding this soon.

    -CD

    ReplyDelete

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