Six Dividend Stocks That Are 'Slow Good'

For years Heinz Ketchup ran commercials describing their product as ’slow good’. It was an obvious inference to ’so good’ and that it was worth waiting on. Investing in dividend stocks in very similar. You certainly won’t find sudden wealth on any given day, but over time those compounding dividends will handsomely reward you.

Speaking of the H. J. Heinz Company (HNZ) and dividends, yesterday the company reported results in-line with the analyst consensus estimate and raised its quarterly common stock dividend from $0.415 to $0.42. The current dividend yield based on the new rate is 4.63%.

Below are other companies being ’slow good’ to their shareholders by increasing the cash dividends paid:

• Unum Group (UNM) raised its quarterly dividend by 10% to $0.0825/share, yielding 1.96%
• PPD, Inc. (PPDI) increased its quarterly dividend by 20% to $0.15/share, yielding 3.05%
• Monro Muffler (MNRO) boosts its quarterly dividend by 16.7% to $0.07/share, yielding 1.08%
• Fred’s (FRED) quarterly dividend soared by 50% to $0.03/share, yielding 0.90%
• SUPERVALU (SVU) raised its quarterly dividend by 1.45% to $0.175/share, yielding 4.36% (Analysis)

Rising dividends are good, but to be great you have to do year after year. For companies with a long string of consecutive dividend increases, see this list.

Disclosure: No position in the aforementioned companies. See a list of all my income holdings here.

Comments

[fxmaven:]

why are tobacco stocks so taboo? Great stable franchises, with high stable dividends, and they are always increased every year. I trust my tobacco dividends to support me in retirement much more than any government "social security" program.

May 30 09:57 AM

[fortypercent:]

i like tobacco. FDA oversite will finally give these companies protection from all the crap. also states and locales are passing laws that place responsibility on the individual adult smoker. this industry is not going away. the tobacco companies should be considered for a portfolio. i like and have been holding LO. lots of cash and no debt, a smaller brand, but considered to have the strongest brand loyalty, Newport and very little international exposure, meaning lots of growth potential.
(disclosure, i'm long LO)


On May 30 09:57 AM fxmaven wrote:

> why are tobacco stocks so taboo? Great stable franchises, with high
> stable dividends, and they are always increased every year. I trust
> my tobacco dividends to support me in retirement much more than any
> government "social security" program.

May 30 11:07 AM

[lakeside:]

Surely you jest.

MNRO at 1.08%; FRED at 0.90%; and UNUM at 1.96%.

I am about as amateur an investor as anybody, and I can find better yields in my sleep:

CTL, WIN, and EQ: 9 - 12%, and their dividends are secure, though EQ will soon be part of CTL.

Almost every utility pays better, increase their dividends yearly, and are very, very secure.

T and VZ: one can't get much safer -- 6 - 7% dividends.

Articles like these resulted in me leaving "Seeking Alpha" for some months; I came back today because I was bored, looking for something new. It appears I'm not missing much on "Seeking Alpha."

You have got to be kidding! Highlighting dividends and using examples like these.

May 30 12:39 PM

[Jim Regan:]

What exactly is MNRO doing boosting their dividend? Clearly, they are not doing well. Increasing your yield for the sake of attracting investors is never a good idea... I would be wary of investing there.

If you want a strong yielder, this list can be improved tenfold. Try industrial names like CAT, EMR, MMM and UTX to name a few. Thanks for the article.

May 30 05:07 PM