Friday, December 30, 2011

6 Stocks With A Vision Of Higher Dividends

A vision is taking the time to contemplate and anticipate, in detail, what the future will bring. A financial vision needs to consider future earnings, savings and economic issues such as inflation. Then based on your vision, you formulate an action plan to ensure the best possible outcome given your unique circumstances. You can’t have a retirement plan until you have a retirement vision. It would seem to me that there are a lot or retirement plans out there but very few retirement visions.

A significant portion of my retirement planning includes dividend growth stocks. Here are a few select companies that have recently followed through on their vision of providing increased cash dividends to their shareholders:

Peoples Financial Corporation (PFBX) operates as the bank holding company for The Peoples Bank, which provides banking products and services to individuals and small to middle market businesses in Mississippi. December 28th the company increased its semiannual dividend 11% to $0.10 per share. The dividend is payable January 17, 2012, to stockholders of record January 10, 2012. The yield based on the new payout is 2.0%.

Ingersoll-Rand Plc (IR) engages in the design, manufacture, sale, and service of a portfolio of industrial and commercial products in the United States and internationally. December 27th the company increased its quarterly dividend 33% to $0.16 per share. The dividend is payable March 30, 2012, to shareholders of record on March 12, 2012. The yield based on the new payout is 2.1%.

In 2012, several companies with a long-term dividend growth vision will hit a significant milestone if/when they raise their dividends. They will join an elite group of companies that have 50 or more consecutive years of dividend increases. Companies potentially joining this group in 2012 include:

- Coca-Cola Company (KO) | Yield: 2.7%
- Johnson & Johnson (JNJ) | Yield: 3.5%
- Lancaster Colony Corp. (LANC) | Yield: 2.0%
- Lowe's Companies (LOW) | Yield: 2.2%

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends and those expected to in 2012; 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 KO, JNJ (Dividend Growth Portfolio). See a list of all my dividend growth holdings here.

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Tags: [KO] [JNJ] [LANC] [LOW] [PFBX] [IR]