Five Stocks Raising Dividends

When it comes to selecting dividend stocks, one of the most important items to look for is consistency in raising dividends. Sure it is easy to increase dividends when the economy is booming and business is good, but to be consistent a company has to persevere and continue to increase dividends during the tough times.

Below are five companies that have recently increased their cash dividends to shareholders:

Village Super Market (VLGEA) operates a chain of 23 ShopRite supermarkets in New Jersey and Pennsylvania. The company’s Board increased its quarterly cash dividend 7.5% to $0.215/share. The dividend is payable on July 23, 2009 to shareholders of record at the close of business on July 2, 2009. VLGEA has increased its dividend six consecutive years since began paying dividends in 2003. At the new rate, the stock is yielding 2.9%.

Casey’s General Store (CASY) has over 1,450 convenience stores (including franchises) in nine midwestern states, selling food, beverage, health and automotive products. At its June meeting, the Board of Directors increased the quarterly dividend 13.3% to $0.085/share. The dividend is payable August 17th, to shareholders of record on August 3rd. This marks the fourth consecutive year CASY has increased its dividend. At the new rate, the stock is yielding 1.3%.

Medtronic (MDT) is a global medical device manufacturer has leadership positions in the pacemaker, defibrillator, orthopedic, diabetes management and other medical markets. Recently the company increased its dividend by 9% to $0.205/share. In addition, the Board authorized MDT to purchase an additional 60 million shares (5.4%) of its common stock. At the new rate, the stock is yielding 2.5%. The company is a Dividend Achiever.

John Wiley & Sons (JW.A) is a global publisher of print and electronic products, providing content and solutions to customers worldwide. The Board recently raised its quarterly cash dividend 8% to $0.14/share. It is payable on July 14, 2009 to shareholders of record on July 6, 2009. This is the 16th consecutive dividend increase. At the new rate, the stock is yielding 1.7%. JW.A is a Dividend Achiever.

Annaly Capital (NLY) is a mortgage real estate investment trust that owns and manages a portfolio of agency mortgage-backed securities and operates a fixed income asset management business. On June 18th, its Board increased its quarterly cash dividend 20% to $0.60/share. The dividend is payable July 29, 2009 to common shareholders of record on June 29, 2009. NLY had previously dropped its dividend in December 2008 to $0.50/share from $0.55/share. At the new rate, the stock is yielding 16.0%.

Though it may seem that most companies are cutting their dividends, many continue to show strength and increase their dividends. For stocks with a long string of consecutive dividend increases, see this list.

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

Comments

[whisperonth...:]

I like NLY, have had it for a while, and just keep holding it, reinvesting and holding. I am now checking out your website to see if there are other things I might be interested in. Your archive holds a wealth of information, so I envision a very good weekend filled with reading material. Thanks!

Jun 20 08:33 AM

[justcoz:]

I've built a position in NLY since Oct. 2007. Why would any investor in his right mind have faith in a Mortgage REIT throughout the trauma of the last 2yrs? The answer is management with intelligence and integrity. It's not a metric that shows up in balance sheets, charts, blogs or dividend yields. I've been able to sell some in the low 20's, buy back in the low teens and collect a juicy dividend each quarter. 19% return during the worst environment of our lifetime.

There are other NLY's out there, that's a list to relish. Any candidates?

Jun 20 03:44 PM

[YoYoMama:]

ANH also increased it's dividend recently.


On Jun 20 03:44 PM justcoz wrote:

> I've built a position in NLY since Oct. 2007. Why would any investor
> in his right mind have faith in a Mortgage REIT throughout the trauma
> of the last 2yrs? The answer is management with intelligence and
> integrity. It's not a metric that shows up in balance sheets, charts,
> blogs or dividend yields. I've been able to sell some in the low
> 20's, buy back in the low teens and collect a juicy dividend each
> quarter. 19% return during the worst environment of our lifetime.
>
>
> There are other NLY's out there, that's a list to relish. Any candidates?

Jun 20 07:35 PM

[coolsoupy:]

I have held NLY for aout 1 1/2 yrs plus I have continuously sold monthly call options to increase the alreday great returns. I also hold HTS that maybe even a better REIT? but is not as good of an option play.

Jun 21 01:40 PM

[whpinvest.com:]

It's also worth noting that NLY is primarily involved in AAA rated MBSs - and that, even though NLY is a REIT, stockholder equity has actually increased over the past couple of years.

Jul 01 09:58 PM