Dividend Increases: 9 Stocks

It is good once again to see companies raising their dividends after last week's pause and Kraft’s (KFT) announcement it was freezing its dividend at $0.29/share for the 5th straight quarter. Dividend increases are the fuel that keeps our dividend income machines running. Without dividend increases, many dividend stocks would not fare well when compared to other income-based investments.

Below are several companies rewarding their shareholders with higher cash dividends:

Brady Corp. (BRC) is an international manufacturer and marketer of solutions that identify and protect premises, products and people. Products include labels and signs, safety devices, printing systems and software, and precision die-cut materials. Recently, the company increased its quarterly dividend 2.9% to $0.17/share. The dividend will be paid on October 30, 2009, to shareholders of record at the close of business on October 9, 2009. BRC is a Dividend Achiever and has increased its dividend for 24 consecutive years. The current yield based on the new dividend is 2.33%.

Village Super Market (VLGEA) operates a chain of 23 ShopRite supermarkets in New Jersey and Pennsylvania. This past week, the company raised its dividend 7% to $0.23/share. The dividend is payable on October 22, 2009 to shareholders of record at the close of business on October 1, 2009. The ex-dividend date is September 29th. The current yield based on the new dividend is 3.14%.

Agree Realty (ADC) is a real estate investment trust that engages in the development, acquisition, and management of retail properties leased to national and regional retail companies in the U.S. Monday, the company bumped its quarterly dividend 2% to $0.51/share. The dividend is payable October 15, 2009 to shareholders of record at the close of business on September 30, 2009. The current yield based on the new dividend is 8.59%.

Philip Morris Int’l (PM) increased its quarterly dividend 7% to $0.58/share. The current yield based on the new dividend is 4.88%.

Kroger (KR) a supermarket operator, with about 2,500 stores in 31 states, also operates convenience stores, jewelry stores, supermarket fuel centers, and food processing plants. Thursday, the company raised its quarterly dividend 5.5% to $0.095/share. The dividend will be paid on December 1, 2009 to shareholders of record as of the close of business on November 16, 2009. The current yield based on the new dividend is 1.83%.

W. P. Carey (WPC) owns and manages a diversified portfolio of net leased corporate real estate. Yesterday, the company raised its quarterly dividend to $0.50/share. This is the company’s 34th consecutive distribution increase. The current yield based on the new dividend is 7.01%.

Corporate Office Properties (OFC) owns, manages, leases, acquires and develops suburban office properties located in Mid-Atlantic region of the U.S. and other select markets. Thursday the company bumped its quarterly dividend 5.4% to $0.3925/share. The dividend will be paid on October 15, 2009 to shareholders of record on September 30, 2009. OFC is a Dividend Achiever and has increased its dividend for 12 consecutive years. The current yield based on the new dividend is 4.10%.

Texas Instruments (TXN) is one of the world’s largest manufacturers of semiconductors, and also produces hand-held graphing and scientific calculator products. The company yesterday increased its quarterly dividend 9% $0.12/share. The dividend will be payable November 16, 2009, to stockholders of record on October 30, 2009. The current yield based on the new dividend is 2.03%.

NYMAGIC, INC. (NYM) specializes in ocean marine, inland marine and non-marine liability insurance. Thursday, the company increased its dividend to $0.06/share. The dividend is payable on October 6, 2009 to shareholders of record on September 30, 2009. The current yield based on the new dividend is 1.44%.

This year many companies have increased their dividends and there will be more to do so before the year end. 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

[Decoy:]

A very interesting investment,but how does a company that earns $1.78 per share give dividend of $1.99 and continue to raise dividends?

Sep 19 08:41 AM

[a. palmer jr.:]

About any of these companies dividends beats putting your money in the bank nowadays. I think our bank pays 2% and isn't likely to increase any time in the future and who knows if it's really safe there!

Sep 19 08:52 AM

[Nacco:]

One very important clarification in this article: in order to receive the dividend of any stock, you need to buy it prior to the ex-dividend date, not the record date. For example, for ADC you need to buy it prior to 9/28/09, not 9/30/09 in order to receive the dividend. Of course, you can sell it after 9/28/09 if you wish and still receive the dividend.

Sep 19 09:08 AM

[GNAPs Jim:]

It reflects the faults associated with GAAP accounting. Dividends are paid from cash flow. Although dividends that are from earnings are classified as dividends and those that are not from earnings (current or retained) are not, the check to the recipient is the same amount!


On Sep 19 08:41 AM Decoy wrote:

> A very interesting investment,but how does a company that earns $1.78
> per share give dividend of $1.99 and continue to raise dividends?

Sep 19 09:34 AM

[Crude Oil T...:]

My years of being a business owner/CEO myself has ruined my mind set when it comes to trading/investing in companies that offer large dividends. I will always have to question and doubt a company that doesn't know how to use capitol to grow a company. And if youy believe buy and hold is dead, what is the sense? Check out this great trading video "The Buy and Hold Myth.....Is Buy and Hold Back" > tinyurl.com/mgzezn

Sep 19 09:48 AM

[WPSPIKER:]

One thing is some companies are not in the GROWTH business such as utilities, NI or DUK both of which I own are good Dividend paying companies but the growth is not from buying other companies but from population and increases in the rates they charge customers as well as acquiring other smaller companies. DUK has been buying companies like crazy expanding it's ALT ENERGY mindset, where as NI has been sticking to their core business. Both of these any many other companies pay much better dividends than those above, save one that is at/near its all time high as well as of fridays at its year high and in this economy buying ANYTHING at its all time/year high is not wise...

I still believe in buy & hold but with a dont stick your head in the sand mentality...
mark


On Sep 19 09:48 AM Crude Oil Trader wrote:

> My years of being a business owner/CEO myself has ruined my mind
> set when it comes to trading/investing in companies that offer large
> dividends. I will always have to question and doubt a company that
> doesn't know how to use capitol to grow a company. And if youy believe
> buy and hold is dead, what is the sense? Check out this great trading
> video "The Buy and Hold Myth.....Is Buy and Hold Back" > tinyurl.com/mgzezn

Sep 19 10:11 AM

[Dividend Di...:]

WPSPIKER:

You might consider a previous article by the author on July 30 - "Are REITS and Utilities good dividend investments?" and the commentary following it. How you select the dividend investments to include in your portfolio is definitely impacted by your specific time frame. I think the author would make the argument that for current income, utilities can be a very good investment, however, in the long term investors might be leaving income on the table by selecting current yield over consistent dividend growth.

Sep 19 12:38 PM

[bobbybutte:]

evaluate teh companies based on their fundamentals raising the dividend is nice in theory but there are other more pertinent factors

Sep 19 06:21 PM

[mbkelly75:]

Thank you for keeping track of this. I have recommended your Stock Idea List to quite a few people online. Keep up the good work. BTW, I am not surprised about Kraft. Their management is not the sharpest around. It is too bad really, as they have good products.
Crude Oil Trader - "Buy and Hold" is nowhere near dead, but you do have to do your homework. Cramer (like him or not) made a good point about spending 1 (one) hour/week/stock keeping up with the news. I have had a couple of dividend-paying stocks in my portfolio for over 50 years - have long ago achieved a zero-cost basis on them - and STILL spend time every week keeping up with the 10Q's and any other news that comes out. finviz.com is a good site to help you keep up with all the news.

Sep 19 11:11 PM

[Old Trader:]

Crude Oil Trader,

You're assuming that the industry in which the company operates is a growing one. As an example, how would you suggest that Altria (MO) expand their domestic tobacco sales, beyond their recent purchase in the smokeless tobacco segment? Their market has stagnated, and will likely decline even more in the future. Attempts to gain further market share would run afoul of antitrust regulations.

In such a scenario, it makes sense that they return the bulk of
earnings to their shareholders.


On Sep 19 09:48 AM Crude Oil Trader wrote:

> My years of being a business owner/CEO myself has ruined my mind
> set when it comes to trading/investing in companies that offer large
> dividends. I will always have to question and doubt a company that
> doesn't know how to use capitol to grow a company. And if youy believe
> buy and hold is dead, what is the sense? Check out this great trading
> video "The Buy and Hold Myth.....Is Buy and Hold Back" > tinyurl.com/mgzezn

Sep 20 01:06 AM

[csuftitan:]

As long as your deposits are less than $250,000, it's safe.


On Sep 19 08:52 AM a. palmer jr. wrote:

> About any of these companies dividends beats putting your money in
> the bank nowadays. I think our bank pays 2% and isn't likely to increase
> any time in the future and who knows if it's really safe there!

Sep 20 01:20 AM

[ebworthen:]

Sectors are important too.

Invest only in companies that will still be selling something when the second half of our "W" recession (depression) ensues.

In my State Kroger is beating the pants off of Albertson's and appeals to the middle class that doesn't want to swim with the lower classes at Wal Mart. They also run fuel centers adjacent to stores with discounts. A well run company that will make money even in a downturn.

Texas Instruments is also a good bet; computer, calculator, cell phone, and any number of instruments that will still sell even in a downturn. I'd say they will keep Tyco busy, and as the dollar drops be competetive with Asian competitors.

Philip Morris - tobacco is like food and liquor and the oldest profession; there will always be money there, especially if they stay diversified among premium and discount brands. Further taxation could hurt dividends, but people will pay almost anything for their smokes.

I would steer clear of anything in real estate, commercial or otherwise, that market won't see an upside for 5 years or more.

The other companies I don't know, but the sectors won't be promising in a recession/depression.

Sep 20 01:12 PM

[rennert:]

How long can they afford to pay dividends if the economy tanks even more? A few weeks ago Warren Buffett said the economy is in shambles.
Well, it is not going to get any better until grandma and all her GARDEN CLUB FRIENDS GET A DECENT RETURN ON THEIR CD's. They are looking at their nest eggs with angry, fearful eyes. The only thing they buy is toilette paper and some nibbles. Inflation is here, food and doc,and vet bills are climbing through the roof. Even we are told by those stinking lying economists that we have almost deflation. Really, just because houses are cheaper now. Who needs another house every week, but we need to eat every day and take care of ourselfes and Fido. And that is getting more and more expensive, many are stuffing cheap junky food in to their bellys just to get themselfes and their families full. Bartering is going on all over the country now. The American families can not recover if they do not get any returns on their savings. Only the Rich are getting fatter than what they already are from these low interest rates.

Sep 20 05:32 PM

[misther:]

Rewarding, you say? They are soo deserving.
Because...

Sep 21 02:33 AM

[Avooch:]

Thanks for the update - dividends are key

====================

Don't Get Massacred !

Gudovac1941

Sep 21 09:34 AM

[Shaftsinker:]

About a year and a half ago I bought Biovail (BVF) on the Toronto exchange at about $10. I've seen a nice return since then as it has recently been hovering around $15, all the while enjoy their ~8% dividend yield.

However, for a company that has recently done well because of its aquisitions of smaller pharmaceuticals, how sustainable can such a high dividend possibly be? I'm still bullish on it in the short but I would have hoped this solid growth would have been accompanied with decrease in the dividend to ensure long term stability.

A high dividend made sense to me when one of the company's big drugs was about to go generic and they wanted to hang on to shareholders, but now that the company is in growth mode again I'm a little worried that it hasn't decreased as of yet.

Sep 22 03:24 PM