Monday, June 11, 2018

5 Stocks Providing Their Shareholders A Growing Income With Higher Cash Dividends

The life-blood of a sound dividend growth strategy is a growing dividend. Often the initial yield of a dividend growth stock is less than other available stocks, but the dividend growth stock comes with an expectation of reasonable increases year after year. This compounding effect will quickly grow the stock's income. It is well worth the investor's time to find companies that can deliver on this expectation.

Below are several companies that are providing their shareholders a growing income with higher cash dividends:

Philip Morris International Inc. (PM) manufactures tobacco products. Recently the company increased its quarterly dividend 6.5% to $1.14 per share. The dividend is payable July 11, 2018 to stockholders of record on June 22, 2018, with an ex-dividend date of June 21, 2018. The yield based on the new payout is 5.9%.

UnitedHealth Group Incorporated (UNH) operates as a diversified health care company in the United States. Recently the company increased its quarterly dividend 20% to $0.90 per share. The dividend is payable June 26, 2018 to stockholders of record on June 18, 2018, with an ex-dividend date of June 15, 2018. The yield based on the new payout is 1.5%.

Boyd Gaming Corporation (BYD) operates as a multi-jurisdictional gaming company. Recently the company increased its quarterly dividend 20% to $0.06 per share. The dividend is payable July 15, 2018 to stockholders of record on June 29, 2018, with an ex-dividend date of June 28, 2018. The yield based on the new payout is 0.7%.

Open Text Corporation (OTEX) provides a suite of software products and services that assist organizations in finding, utilizing, and sharing business information from various devices. Recently the company increased its quarterly dividend 15% to $0.1518 per share. The dividend is payable June 29, 2018 to stockholders of record on June 8, 2018, with an ex-dividend date of June 7, 2018. The yield based on the new payout is 1.8%.

Alexandria Real Estate Equities, Inc. (ARE), an S&P 500® company, is an urban office real estate investment trust ("REIT") uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations. Recently the company increased its quarterly dividend 3.3% to $0.93 per share. The dividend is payable July 16, 2018 to stockholders of record on June 29, 2018, with an ex-dividend date of June 28, 2018. The yield based on the new payout is 3.0%.

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: PM, UNH, BYD, OTEX, ARE,

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