When selecting income investments, the three most important questions to answer are : 1) Is the investment increasing its dividend each year, 2) Is the increase likely to continue into the future and 3) Are you being compensated for the risk you are taking? When you answer yes to all three of the questions, you just might have found an excellent income investment.
Below are seven dividend stocks that recently rewarded their shareholders with increased cash dividends:
Sanderson Farms (SAFM) is an integrated poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products in the United States. Recently, the company increased its quarterly dividend 7.1% to $0.15/share. The dividend is payable October 20, 2009, to stockholders of record on October 6, 2009. The current yield based on the new dividend is 1.59%.
ConAgra (CAG) is one of the largest packaged food processors in the U.S. This past week, the company raised its quarterly dividend 5% to $0.20/share. The dividend will be paid on Dec. 1, 2009, to stockholders of record at the close of business on Oct. 30, 2009. The current yield based on the new dividend is 3.69%.
Prospect Capital (PSEC) is a financial services company that primarily lends to and invests in middle market privately-held companies. Monday, the company jumped its quarterly dividend to $0.4075/share, up from $0.40625/share. This was the 20th consecutive quarterly increase. The dividend will be paid Monday, October 19, 2009 to shareholder of record Thursday, October 8, 2009. The payment date is Monday, October 19, 2009. The current yield based on the new dividend is 15.22%.
Calavo Growers (CVGW) procures and markets avocados and other perishable commodities and prepares and distributes processed avocado products. On Monday, the company increased its quarterly dividend 43% to $0.50/Share. The current yield based on the new dividend is 2.63%.
Atlantic Tele-Network (ATNI) provides wireless and wireline telecommunications services in the Caribbean and North America. Earlier this week, the company bumped its quarterly dividend 11% to $0.20/share. The dividend is payable on October 15, 2009 to stockholders of record as of October 5, 2009. The current yield based on the new dividend is 1.50%.
CLARCOR (CLC) is a diversified marketer and manufacturer of mobile and industrial filtration products and consumer and industrial packaging products. Thursday, the company boosted its quarterly dividend by 8.3% to $0.0975/share. The dividend is payable October 23, 2009 to shareholders of record October 9, 2009. CLC is a Dividend Achiever and has increased its dividend for 26 consecutive years. The current yield based on the new dividend is 1.28%.
Accenture (ACN) is a global management consulting, technology services and outsourcing company. Thursday, it announced a 50% increase in its annual dividend to $0.75/share.The dividend is payable on Nov. 16, 2009. The current yield based on the new dividend is 2.05%.
Fortunately, it is now very easy to find companies committed to increasing their dividends each year. For a list of stocks with a long string of consecutive dividend increases, see this list.
Full Disclosure: No position in the aforementioned stocks. See a list of all my income holdings here.