Monday, July 27, 2020

7 Confident and Secure Companies Boosting Dividends

If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. The industry the company operates in, legal considerations (REITs and MLPs), maturity and growth potential all have an effect on an individual stock's yield, along with the company's ability to grow its dividend.

Below are several companies confident and secure enough in their business to increase their cash dividends:

Skyworks Solutions (SWKS) recently increased its quarterly dividend 14% to $0.50 per share. The dividend is payable Sep. 1, 2020 to stockholders of record on Aug. 11, 2020, with an ex-dividend date of Aug. 10, 2020. The yield based on the new payout is 1.5%.

Unilever (UL) recently increased its quarterly dividend 5.6% to $0.4694 per share. The dividend is payable Sep. 9, 2020 to stockholders of record on Aug. 7, 2020, with an ex-dividend date of Aug. 6, 2020. The yield based on the new payout is 3.4%.

Hershey (HSY) recently increased its quarterly dividend 4% to $0.804 per share. The dividend is payable Sep. 15, 2020 to stockholders of record on Aug. 21, 2020, with an ex-dividend date of Aug. 20, 2020. The yield based on the new payout is 2.3%.

J. M. Smucker (SJM) recently increased its quarterly dividend 2.3% to $0.90 per share. The dividend is payable Sep. 1, 2020 to stockholders of record on Aug. 14, 2020, with an ex-dividend date of Aug. 13, 2020. The yield based on the new payout is 3.3%.

Canadian Pacific Railway (CP) recently increased its quarterly dividend 15% to $0.95 per share. The dividend is payable Oct. 26, 2020 to stockholders of record on Sep. 25, 2020, with an ex-dividend date of Sep. 24, 2020. The yield based on the new payout is 1.0%.

Newtek Business (NEWT) recently increased its quarterly dividend 27% to $0.56 per share. The dividend is payable Jul. 31, 2020 to stockholders of record on Jul. 15, 2020, with an ex-dividend date of Jul. 14, 2020. The yield based on the new payout is 14.3%.

Lithia Motors (LAD) recently increased its quarterly dividend 3.3% to $0.31 per share. The dividend is payable Aug. 28, 2020 to stockholders of record on Aug. 14, 2020, with an ex-dividend date of Aug. 13, 2020. The yield based on the new payout is 0.7%.

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.

Stocks that have recently cut their dividends:

AllianceBernstein (AB) - cuts dividend by 5%
Suburban Propane Partners (SPH) - cuts distribution by 50%

Full Disclosure: No position in the aforementioned securities.

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Tags: SWKS, UL, HSY, SJM, CP, NEWT, LAD, AB, SPH,
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