Monday, January 15, 2018

6 Stocks Building A Comfortable Retirement With Higher Dividends

Forget about those 'Make 534% On Every Trade' ads that you see on many financial websites. Real wealth is built with sweat equity and a sound financial plan. A long-term buy-and-hold investing approach focusing on quality dividend growth stocks has provided the means for many investors to enjoy a comfortable retirement. If you start early enough, you will go beyond a comfortable retirement into the realm of building long-term wealth.

Below are several companies that are helping their shareholders build a comfortable retirement with higher dividends:

Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. Recently the partnership increased its quarterly distribution 0.6% to $0.425 per unit. The distribution is payable February 7, 2018 to unitholders of record on January 31, 2018, with an ex-dividend date of January 30, 2018. The yield based on the new payout is 5.9%.

Hormel Foods Corporation (HRL) produces and markets various meat and food products in the United States and internationally. Recently the company increased its quarterly dividend 10% to $0.1875 per share. The dividend is payable February 15, 2018 to stockholders of record on January 15, 2018, with an ex-dividend date of January 11, 2018. The yield based on the new payout is 2.1%.

Genesis Energy, L.P. (GEL) operates in the midstream segment of the crude oil and natural gas industry. Recently the company increased its quarterly dividend 2% to $0.51 per share. The dividend is payable February 14, 2018 to stockholders of record on January 31, 2018, with an ex-dividend date of January 30, 2018. The yield based on the new payout is 8.4%.

Ally Financial Inc. (ALLY), a diversified financial services company, provides a range of financial products and services for consumers, businesses, automotive dealers, and corporate clients in the United States. Recently the company increased its quarterly dividend 8.3% to $0.13 per share. The dividend is payable February 15, 2018 to stockholders of record on February 1, 2018, with an ex-dividend date of March 31, 2018. The yield based on the new payout is 1.7%.

Tallgrass Energy Partners, LP (TEP) acquires, owns, develops, and operates midstream energy assets in North America. Recently the partnership increased its quarterly distribution 2.1% to $0.965 per unit. The distribution is payable February 14, 2018 to unitholders of record on January 31, 2018, with an ex-dividend date of January 30, 2018. The yield based on the new payout is 8.5%.

Apogee Enterprises, Inc. (APOG) designs and develops glass products and services in the United States, Canada, and Brazil. Recently the company increased its quarterly dividend 12% to $0.1575 per share. The dividend is payable February 14, 2018 to stockholders of record on January 30, 2018, with an ex-dividend date of January 29, 2018. The yield based on the new payout is 1.4%.

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

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Tags: EPD, HRL, GEL, ALLY, TEP, APOG,

2 comments:

  1. I'm a firm believer in the value of dividend growth investing. I love investing in companies that increase their dividends every year. Of the companies you mentioned, I invest in HRL, which is a dividend aristocrat. Don't get me wrong. I try to dabble in cryptocurrencies and I'm looking into the prospects of day trading. However, fundamentally, I invest in dividend growth stocks for long term investing and security.

    I do agree with you that due diligence is important regardless of how an investor chooses to invest.

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  2. Nice selection of stocks. Getting 534% increase is definitely a blue moon occurrence and risk are too high. Nevertheless, IMHO to retire comfortably our stocks need to pay good dividends and should have also appreciated significantly (capital gains). It looks retiring purely based on dividend income is looking almost impossible.

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