Dividend Increases: Stocks Delivering Good News With Higher Dividends

I couldn’t begin to estimate how many different stocks are traded around the world on the various exchanges. Like everything else, there are many participants, but few players. Though the population of stocks may be large, there are only a precious few that are worthy dividend stocks. Increasing dividends is one attribute that separates the good dividend stocks from the rest.

The best dividend stocks in the world consistently raise their dividends. This week these companies chose to step up and reward their investors with higher cash dividends:

Dividend Increase: Companies Creating Real Wealth With Higher Cash Dividends

A stock dividend, also known as a "scrip dividend", is a dividend payment made with stock instead of cash. Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? In short, a stock dividend is nothing more than a glorified stock split. At the end of the process, the shareholder has more shares that are worth less. Like a stock split, you can not create value by issuing paper and getting nothing in exchange.

Below are several select companies that recently decided to create real value for their shareholders by raising their cash dividends:

Dividend Increases: Stocks Using Real Cash To Pay Higher Dividends

You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.

An increasing cash dividend keeps pressure on management to ensure the company is well run. If there are too many missteps, eventually the dividend will slip. Here are several stocks where management recently met the challenge by raising their cash dividends:

Dividend Increases: These Stocks Are Turbo-Charging Returns With Increasing Dividends

"Turbo Charge Your Portfolio With Reinvested Dividends"
Dividend Increases: These Stocks Are Turbo-Charging Returns With Increasing Dividends

It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.

Here are several companies looking to increase their long-term returns by raising their cash dividends:

Dividend Increases: Stocks Pumping Up Their Dividend

Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough - the dividend growth investor also expects substantial and consistent growth.

Below are several companies not only sustaining their dividends, but growing them:

Dividend Increases: Dividend Stocks Working Hard During The Holidays

As we officially head into the holiday season, many of us in the U.S. will get a few days off this week in observance of the Thanksgiving holiday. Though not much is happening at the office, there are still many working for me today. Not people, but my Dividend Stocks. It is great to know while I am relaxing with family and watching the big game, those stocks are hard at work providing me an additional income stream.

Several companies this week provided their shareholders an early Thanksgiving bonus in the form of higher cash dividends:

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:

Dividend Increases: Stocks Building Wealth With Dividend Increases

Have you ever wondered just where are all the get-rich-now infomercial millionaires? I know several people who have purchased one or more of these get-rich-now kits, but I don't know of anyone who actually got rich from purchasing the kit. Warren Buffett and Bill Gates didn't build their fortunes with a get-rich-now kit. They worked hard built it steadily over time.

In much the same way, a disciplined approach to investing, such as dividend growth stocks, can be highly effective. Though it may seem boring to many, I find it exciting to see my income growing as the finish line approaches.

Below are several companies building their shareholders' wealth with increased cash dividends:

Dividend Increases: Stocks Building Wealth With Dividend Increases

Have you ever wondered just where are all the get-rich-now infomercial millionaires? I know several people who have purchased one or more of these get-rich-now kits, but I don't know of anyone who actually got rich from purchasing the kit. Warren Buffett and Bill Gates didn't build their fortunes with a get-rich-now kit. They worked hard built it steadily over time.

In much the same way, a disciplined approach to investing, such as dividend growth stocks, can be highly effective. Though it may seem boring to many, I find it exciting to see my income growing as the finish line approaches.

Below are several companies building their shareholders' wealth with increased cash dividends:

Dividend Increases: Stocks Increasing Dividends For A Rainy Day

Life often deals us difficult circumstances to work through at what seems to be the most inopportune time. During economic downturns, many people lose their jobs at a time when companies aren't hiring. When things like this happen, those with an alternative income, including dividend growth stocks, are in a better position to deal with the circumstances thrust on them.

Below are several companies increasing their dividends and in turn better preparing their shareholders for a financial rainy day:

Dividend Increases: Stocks Beating Inflation With Higher Dividends

Investing in dividend growth stocks is not about buying a current high yield, but instead building a high yield-on-cost over time. One of the criticisms I sometimes is, "That low yield isn't even covering inflation." This is a very valid concern, if true. The way many low yielding stocks yields compensate for inflation is by growing their dividend well in excess of the inflation rate.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:

Dividend Increases: Stocks That Are Meeting Their Shareholders' Goal Of Increased Dividends

I have stated many times that my goal is to create an ever growing income stream from dividend growth stocks. Secondarily, it is my desire to beat the S&P 500 over time. With that said, I rarely look at the capital performance of individual stocks. What I do watch is the ability of the stocks I own to sustain their dividend growth.

This week several companies met their shareholders' goal of higher income with increased cash dividends:

Dividend Increases: These Stocks Are Paying You Back With Higher Cash Dividends

Payback is the amount of time needed for an investment to earn its cost, undiscounted. Though not very sophisticated, payback can still help you screen for good, solid dividend growth stocks. Once you earn back your investment, some might say you are in a no-lose situation. I wouldn’t go quite that far, but you have found an investment that has provided you a good historical revenue stream, and hopefully it will continue to do so in the future.

3 Stocks Sending More Cash To Shareholders With Higher Dividends

Any income investor will tell you that it is important for a company to sustain its dividend. However, as an investor in dividend growth stocks, it is not enough to simply sustain the dividend – we want to own companies that are capable of sustained dividend growth. Needless to say, this is a little more difficult to accomplish, but well-worth the time to find companies that can deliver on this expectation.

4 Stocks Building Deferred Gratification With Increased Dividends

Deferred gratification is a principle where one or more people choose to postpone near-term benefits in order to enhance their chances of greater benefits in the future. In our microwave society marked by the ‘I want it now’ attitude, it is unusual to find someone willing to wait. However, deferred gratification is essential for anyone wanting to build wealth and is a key ingredient in a successful dividend investing strategy.

Below are several stocks building future gratification through with the promise of higher cash dividends:

5 Stocks Pumping Up Their Yield With Increased Dividends

There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Income investors are investing for maximum current income, while dividend growth investors are looking to maximize income over an extended period of time — usually sacrificing current income for potential greater future earnings. Unlike fixed income investments, a growing dividend means a growing yield on cost.

This week several companies pumped up their shareholders' yield by increasing their cash dividends:

7 Dividend Stocks Building Shareholder Returns With Higher Dividends

Over time, a conservative dividend growth based investment strategy usually does quite well versus the market as a whole. My goal as a dividend growth stocks investor is to build a steadily increasing income and not necessarily to outperform the market via capital gains. But given the choice, I certainty don't mind having both.

Below are several dividend stocks building shareholder returns with higher cash dividends:

5 Stocks Raising The Dividend Growth Bar

A stock with a high yield doesn’t mean much if the dividend is cut or eliminated, and the stock price declines significantly. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk. One measure of dividend sustainability is the ability of management to consistently raise their dividends each year. 

Below are several companies raising the dividend growth bar one year by increasing cash dividends paid to their shareholders:

7 Companies Showing Confidence With Increased Dividends

A person’s character is determined by how they behave when no one else is looking and during difficult times. In much the same way, we can learn a lot about a company’s management when they face adversity. One metric I look at closely during a downturn is cash generation relative to earnings. The ability of a company to grow its dividend throughout the economic cycle is highly dependent on the management’s ability to generate cash in a downturn.

Below are several select companies with a management confident enough to increase their cash dividends:

7 Stocks Paying Higher Cash Dividends

We have all heard it… Stodgy, for old people, yawn, boring! These have all been used to describe dividend growth stocks. As an investor in dividend growth stocks, I sometimes think our strategy is the most misunderstood. It seems everyone understands a traders mentality and a high-yield mentality. Periodically, it is good to remind ourselves that dividend growth stocks provides us with excellent long-term leverage and a growing income.

Below are several stocks using real cash to raise their dividends: