Gregg S. Fisher noted in a 2009 Forbes article that the assumption that investors are rational agents is bunk. He went on to say "We are not rational. We're human. Even the most brilliant investor can be swayed by emotions into making irrational decisions that result in financial loss." Logic has very little to do with short-term movements in stock prices. Knowing this, there are some things that long-term buy-and-hold investors can do to profit from these irrational moves in the market, such as following a disciplined approach of acquiring stocks that routinely increase their dividends.
Below are several companies that are helping build shareholder wealth through inceasing their cash dividends:
The Female Health Company (FHCO) engages in the development, manufacture, marketing, and sale of consumer health care products. March 27th the company increased its quarterly dividend 17% to $0.07 per share. The dividend is payable May 8, 2013 to stockholders of record as of May 1, 2013. The yield based on the new payout is 3.9%.
Camden National Corporation (CAC) operates as the holding company for Camden National Bank, which provides commercial and consumer banking products and services. March 26th the company increased its quarterly dividend 8% to $0.27 per share. The dividend is payable on April 30, 2013, for shareholders of record on April 16, 2013. The yield based on the new payout is 3.2%.
Air Products and Chemicals, Inc. (APD) provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. March 25th the company increased its quarterly dividend 11% to $0.71 a share. The dividend is payable May 13, 2013, to shareholders of record at the close of business on Apr 1, 2013. The yield based on the new payout is 3.2%.
Washington Federal, Inc. (WAFD) operates as the holding company for Washington Federal that provides various financial services in the United States. March 25th the company increased its quarterly dividend 12.5% to $0.09 per share. The dividend is payable April 19, 2013 to shareholders of record on April 5, 2013. The yield based on the new payout is 2.1%.
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 recommended 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.
Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.