Monday, May 18, 2020

3 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:

Cardinal Health (CAH) recently increased its quarterly dividend 1% to $0.4859 per share. The dividend is payable Jul. 15, 2020 to stockholders of record on Jul. 1, 2020, with an ex-dividend date of Jun. 30, 2020. The yield based on the new payout is 3.9%.

MSA Safety (MSA) recently increased its quarterly dividend 2.4% to $0.43 per share. The dividend is payable Jun. 10, 2020 to stockholders of record on May 22, 2020, with an ex-dividend date of May 21, 2020. The yield based on the new payout is 1.5%.

Materion (MTRN) recently increased its quarterly dividend 4.5% to $0.115 per share. The dividend is payable Jun. 10, 2020 to stockholders of record on May 29, 2020, with an ex-dividend date of May 28, 2020. The yield based on the new payout is 1.0%.

Unfortunately, the Covind-19 induced bear market continues to produce dividend cuts and dividend suspensions. Here is a list of select notable companies:

Tanger Factory Outlets (SKT) - Suspended dividend
Western Digital CWDC) - Suspended dividend

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.

Full Disclosure: No position in the aforementioned securities.

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Tags: CAH, MSA, MTRN,
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