Monday, August 6, 2018

7 Stocks With A Vision Of Higher Dividends

To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise their dividend. No Board member or CEO of this type of company wants a dividend cut to occur on their watch.

Here are a few select companies that have recently followed through on their vision of providing increased cash dividends to their shareholders:

BP p.l.c. (BP) engages in energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. Recently the company increased its quarterly dividend 3.4% to $0.615 per share. The dividend is payable September 21, 2018 to stockholders of record on August 10, 2018, with an ex-dividend date of August 9, 2018. The yield based on the new payout is 5.5%.

BP Midstream Partners LP (BPMP) owns, acquires, operates, and develops pipelines and other midstream assets. Recently the partnership increased its quarterly distribution 1.9% to $0.2725 per unit. The distribution is payable August 15, 2018 to unitholders of record on August 1, 2018, with an ex-dividend date of July 31, 2018. The yield based on the new payout is 5.2%.

EOG Resources, Inc. (EOG) explores for, develops, produces, and markets crude oil and natural gas. Recently the company increased its quarterly dividend 19% to $0.22 per share. The dividend is payable October 31, 2018 to stockholders of record on October 17, 2018, with an ex-dividend date of October 16, 2018. The yield based on the new payout is 0.7%.

Main Street Capital Corporation (MAIN) is a business development company specializing in long- term equity and debt investments in small and lower middle market companies. Recently the company increased its quarterly dividend 2.6% to $1.95 per share. The dividend is payable October 15, 2018 to stockholders of record on September 20, 2018, with an ex-dividend date of September 19, 2018. The yield based on the new payout is 5.9%.

Ares Management, L.P. (ARCC) is an American publicly traded, global alternative asset manager focused on alternative strategies, including credit, private equity, and real estate activities. Recently the company increased its quarterly dividend 2.6% to $0.39 per share. The dividend is payable September 28, 2018 to stockholders of record on September 14, 2018, with an ex-dividend date of September 13, 2018. The yield based on the new payout is 9.3%.

Simon (SPG) is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations. Recently the company increased its quarterly dividend 2.6% to $2.00 per share. The dividend is payable August 31, 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 4.8%.

Illinois Tool Works Inc. (ITW) manufactures and sells industrial products and equipment worldwide. Recently the company increased its quarterly dividend 28% to $1.00 per share. The dividend is payable October 9, 2018 to stockholders of record on September 28, 2018, with an ex-dividend date of September 27, 2018. The yield based on the new payout is 2.9%.

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 MAIN, ITW in various dividend income portfolios. See a list of all my Dividend Growth Portfolio holdings here.

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Tags: BP, BPMP, EOG, MAIN, ARCC, SPG, ITW,

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