Monday, May 14, 2018

7 Stocks Growing Future Yield With Increased Dividends

In the southern U.S. where I live, there has been some controversy over harvesting forests of hardwoods and reseeding them with pines. Growing hardwoods is very similar to investing in dividend stocks. What you plant or invest in today will not yield much for years to come. That is not to say progress is not seen. It is just slow and deliberate. To grow hardwoods it takes great foresight and commitment to the process. The small investments we make in quality dividend stocks each month won’t yield large payments in the near-term. It will take time for the payments to grow and compound, but they will.

Below are several companies planting the seeds for future yield by increasing their cash dividends:

Phillips 66 (PSX) operates as an energy manufacturing and logistics company. Recently the company increased its quarterly dividend 14% to $0.80 per share. The dividend is payable June 1 , 2018 to stockholders of record on May 21, 2018, with an ex-dividend date of May 18, 2018. The yield based on the new payout is 2.7%.

Baker Hughes (BHGE), a GE company provides integrated oilfield products, services, and digital solutions worldwide. Recently the company increased its quarterly dividend 50% to $0.18 per share. The dividend is payable June 1, 2018 to stockholders of record on May 22, 2018, with an ex-dividend date of May 21, 2018. The yield based on the new payout is 2.0%.


Baxter International Inc. (BAX) provides a portfolio of healthcare products. Recently the company increased its quarterly dividend 19% to $0.19 per share. The dividend is payable July 2, 2018 to stockholders of record on June 1, 2018, with an ex-dividend date of June 31, 2018. The yield based on the new payout is 1.1%.

Constellation Brands, Inc. (STZ) produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. Recently the company increased its quarterly dividend 42% to $0.74 per share. The dividend is payable May 24, 2018 to stockholders of record on May 10, 2018, with an ex-dividend date of May 9, 2018. The yield based on the new payout is 1.3%.

Cardinal Health, Inc. (CAH) operates as an integrated healthcare services and products company worldwide. Recently the company increased its quarterly dividend 3% to $0.4763 per share. The dividend is payable July 15, 2018 to stockholders of record on July 2, 2018, with an ex-dividend date of June 30, 2018. The yield based on the new payout is 3.6%.

KeyCorp (KEY) operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. Recently the company increased its quarterly dividend 14% to $0.12 per share. The dividend is payable June 15, 2018 to stockholders of record on May 29, 2018, with an ex-dividend date of May 25, 2018. The yield based on the new payout is 2.1%.

Sturm, Ruger & Company, Inc. (RGR) designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. Recently the company increased its quarterly dividend 39% to $0.32 per share. The dividend is payable June 1, 2018 to stockholders of record on May 22, 2018, with an ex-dividend date of May 21, 2018. The yield based on the new payout is 1.7%.

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.

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Tags: PSX, BHGE, BAX, STZ, CAH, KEY, RGR,

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