Monday, November 16, 2020

Dividend Increases: Stocks Providing Positive Feedback With Higher Dividends

It seems that every investing article ends with the same conclusion - you should be buying dividend stocks. Beyond the simple concepts, some of the writers are making really bad recommendations and cross-breeding dividend investing with their preferred form of investing. Dividend growth investing is not about exit points, momentum swings, relative strength, sector rotation; instead it is about studying fundamentals, selecting superior stocks and building a portfolio with a long-term horizon. When we buy a dividend stock, we hope to hold it forever.

This week several companies provided their shareholders positive feedback with increased cash dividends:


Aaron's (AAN) recently increased its quarterly dividend 12% to $0.045 per share. The dividend is payable Nov. 20 to shareholders of record Nov. 16, with an ex-div date of Nov. 13. The yield based on the new payout is 0.31%.

Haverty Furniture (HVT) recently increased its quarterly dividend 10% to $0.22 per share. The dividend is payable Dec. 9 to shareholders of record Nov. 23 with an ex-div date of Nov. 20. The yield based on the new payout is 3.45%. In addition, the board authorized a special cash dividend of $2.00 per share on the common stock and $1.90 per share on the Class A common stock.

Manpower (MAN) recently increased its quarterly dividend 7.3% to $1.17 per share. The dividend is payable Dec. 15 to shareholders of record Dec. 1 with an ex-div date of Nov. 30. The yield based on the new payout is 3.15%.

Automatic Data Processing (ADP) recently increased its quarterly dividend 2.2% to $0.93 per share. The dividend is payable Jan. 1 to shareholders of record Dec. 11, with an ex-div date of Dec. 10. The yield based on the new payout is 2.17%.

D.R. Horton (DHI) recently increased its quarterly dividend 14% to $0.20 per share. The dividend is payable Dec. 14 to shareholders of record Dec. 4, with an ex-div date of Dec. 3. The yield based on the new payout is 1.23%.

MDU Resources (MDU) recently increased its quarterly dividend 2.4% to $0.2125 per share. The dividend is payable Jan. 1 tp shareholders of record Dec. 10, with an ex-div date of Dec. 9. The yield based on the new payout is 3.54%.

Roper (ROP) recently increased its quarterly dividend 10% to $0.5625 per share. The dividend is payable Jan. 22 to shareholders of record Jan. 8 with an ex-div date of Jan. 7. The yield based on the new payout is 0.58%.

Atmos Energy (ATO) recently increased its quarterly dividend 8.7% to $0.625 per share. The dividend is payable Dec. 14 to shareholders of record Nov. 30, with an ex-div date of Nov. 27. The yield based on the new payout is 2.48%.

Lancaster Colony (LANC) recently increased its quarterly dividend 7.1% to $0.75 per share. The dividend is payable Dec. 31 to shareholders of record Dec. 7, with an ex-div date of Dec. 4. The yield based on the new payout is 1.75%.

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:

Newtek Business (NEWT) cuts dividend by 19%

Full Disclosure: No position in the aforementioned securities.

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