Monday, June 25, 2018

6 Dividend Stocks Building Superior Long-Term Returns

Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company's increasing intrinsic value. Great companies that increase dividends tend to have rising share prices over time. Holding only first-rate businesses protects your dividend stream and helps provide for steady price appreciation.

Below are several companies building future returns with higher cash dividends:

Realty Income (O), The Monthly Dividend Company, is an S&P 500 REIT dedicated to providing stockholders with dependable monthly income. Recently the company increased its quarterly dividend 0.2% to $0.22 per share. The dividend is payable July 13, 2018 to stockholders of record on July 2, 2018, with an ex-dividend date of June 29, 2018. The yield based on the new payout is 5.0%.

Lowe's Companies, Inc. (LOW) operates as a home improvement retailer in the United States, Canada, and Mexico. Recently the company increased its quarterly dividend 17% to $0.48 per share. The dividend is payable August 8, 2018 to stockholders of record on July 25, 2018, with an ex-dividend date of July 24, 2018. The yield based on the new payout is 2.0%.

Darden Restaurants, Inc. (DRI) owns and operates full-service restaurants in the United States and Canada. Recently the company increased its quarterly dividend 19% to $0.75 per share. The dividend is payable August 1, 2018 to stockholders of record on July 10, 2018, with an ex-dividend date of July 9, 2018. The yield based on the new payout is 3.2%.

Fifth Third Bancorp (FITB) operates as a diversified financial services company in the United States. Recently the company increased its quarterly dividend 12% to $0.18 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 2.4%.

AG Mortgage Investment Trust, Inc. (MITT), a real estate investment trust, focuses on investing in, acquiring, and managing a portfolio of residential mortgage assets, other real estate-related securities, and financial assets. Recently the company increased its quarterly dividend 5.3% to $0.50 per share. The dividend is payable July 31, 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 11%.

Granite Point Mortgage Trust Inc. (GPMT) originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. Recently the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable July 18, 2018 to stockholders of record on July 2, 2018, with an ex-dividend date of June 29, 2018. The yield based on the new payout is 8.5%.

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 O in my Dividend Growth Stocjs Portfolio. See a list of all my Dividend Growth Portfolio holdings here.

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Tags: O, LOW, DRI, FITB, MITT, GPMT,

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