Tuesday, December 26, 2017

6 Stocks Compounding Your Returns With Increased Dividends

Too often we take a short-term approach, to our long-term detriment. There is a reason we don't see infomercials selling dividend growth investment strategies. For those looking to get rich now, a disciplined approach to investing that focuses on the long-term simply isn't appealing. If I knew in my 20's or 30's what I know now about dividend growth stocks, I would likely be retired now. The compounding power of growing dividends is tremendous.

Below are several companies that are demonstrating the power of compounding dividends by increasing their cash dividends:

Pfizer Inc. (PFE) discovers, develops, manufactures, and sells healthcare products worldwide. Recently the company increased its quarterly dividend 6.3% to $0.34 per share. The dividend is payable March 1, 2018 to stockholders of record on February 2, 2018, with an ex-dividend date of February 1, 2018. The yield based on the new payout is 3.7%.

Boston Properties, Inc. (BXP), a real estate investment trust (REIT) that engages in the ownership and development of office properties. Recently the company increased its quarterly dividend 6.7% to $0.80 per share. The dividend is payable January 30, 2018 to stockholders of record on December 29, 2017, with an ex-dividend date of December 28, 2017. The yield based on the new payout is 2.5%.

Wabash National Corporation (WNC) operates as a diversified industrial manufacturer and North America's producer of semi-trailers and liquid transportation systems. Recently the company increased its quarterly dividend 25% to $0.075 per share. The dividend is payable January 25, 2018 to stockholders of record on January 4, 2018, with an ex-dividend date of January 3, 2018. The yield based on the new payout is 1.6%.

The Andersons, Inc. (ANDE) engages in the grain, ethanol, plant nutrient, railcar leasing, turf and cob products, and retailing businesses in the United States and internationally. Recently the company increased its quarterly dividend 3.1% to $0.165 per share. The dividend is payable January 23, 2018 to stockholders of record on January 2, 2018, with an ex-dividend date of December 25, 2018. The yield based on the new payout is 2.1%.

Granite Point Mortgage Trust Inc. (GPMT) operates as a real estate investment trust that focuses on originating, investing in, and managing senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments. Recently the company increased its quarterly dividend 19% to $0.38 per share. The dividend is payable January 18, 2018 to stockholders of record on December 29, 2017, with an ex-dividend date of December 28, 2017. The yield based on the new payout is 8.4%.

The Toro Company (TTC) designs, manufactures, and markets professional turf maintenance equipment and services, turf irrigation systems, landscaping equipment and lighting products, snow and ice management products, agricultural micro-irrigation systems, rental and specialty construction equipment, and residential yard and snow thrower products worldwide. Recently the company increased its quarterly dividend 14.3% to $0.20 per share. The dividend is payable January 10, 2018 to stockholders of record on December 22, 2017, with an ex-dividend date of December 21, 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.

Related Articles
- The Next Great Company
- 5 Stocks With a Sustainable Dividend
- Dividend Investing + Value Investing = Superior Returns
- The Dark Side of Dividends
- 7 Higher Yielders With A Low Free Cash Flow Payout


Tags: PFE, BXP, WNC, ANDE, GPMT, TTC,

1 comment:

  1. Some good companies you've got here. I've been analyzing PFE for awhile now but I keep being turned away by its seemingly cemented price.

    ReplyDelete

Popular Posts - Last 7 days