Monday, July 16, 2018

7 Dividend Stocks Acting Like a Money Machine With Increased Dividends

Readers of this space know that the primary focus of my dividend portfolio is to create ever-increasing income money machine by investing in dividend growth securities. This means that sometimes I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. As one that values diversity, I also invest in some high yield securities. However, any dividend stock that I invest in must have an increasing dividend.

Below are companies that have recently made their shareholders take notice with higher cash dividends:

Delta Air Lines, Inc. (DAL) provides scheduled air transportation for passengers and cargo in the United States and internationally. Recently the company increased its quarterly dividend 15% to $0.35 per share. The dividend is payable August 16, 2018 to stockholders of record on July 26, 2018, with an ex-dividend date of July 25, 2018. The yield based on the new payout is 2.8%.

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 $0.43 per unit. The distribution is payable August 8, 2018 to unitholders of record on July 31, 2018, with an ex-dividend date of July 30, 2018. The yield based on the new payout is 6.1%.

Occidental Petroleum Corporation (OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. Recently the company increased its quarterly dividend 1.3% to $0.78 per share. The dividend is payable October 15, 2018 to stockholders of record on September 10, 2018, with an ex-dividend date of September 7, 2018. The yield based on the new payout is 3.7%.

Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. Recently the company increased its quarterly dividend 5.6% to $1.14 per share. The dividend is payable September 4, 2018 to stockholders of record on August 22, 2018, with an ex-dividend date of August 21, 2018. The yield based on the new payout is 3.3%.

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 42% to $0.17 per share. The dividend is payable September 14, 2018 to stockholders of record on August 28, 2018, with an ex-dividend date of August 27, 2018. The yield based on the new payout is 3.4%.

The J. M. Smucker Company (SJM) manufactures and markets branded food and beverage products worldwide. Recently the company increased its quarterly dividend 9% to $0.85 per share. The dividend is payable September 4, 2018 to stockholders of record on August 17, 2018, with an ex-dividend date of August 16, 2018. The yield based on the new payout is 3.1%.

Fastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally. Recently the company increased its quarterly dividend 8.1% to $0.40 per share. The dividend is payable August 22, 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 3.2%.

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

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(Photo Credit)


Tags: DAL, EPD, OXY, CMI, KEY, SJM, FAST,

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