Just as picking fruit from a mango tree does not harm it, living off dividends does not damage the investment’s ability to produce future results. A mango tree’s life will easily span an entire generation. Similarly, well-chosen dividend investments will not only provide income in retirement, but can be passed to your children who can continue to reap the benefits.
Below are several select companies that recently decided to reward their shareholders with fruits of their labor in the form of increased cash dividends:
Epoch Holding (EPHC) is an investment advisory and investment management services company. January 11th the company increased its quarterly dividend 67% to $0.05/share. The dividend is payable on February 12, 2010 to shareholders of record as of January 29, 2010. The ex-dividend date is January 27, 2010. The yield based on the new payout is 1.84%.
CVS Caremark (CVS) is a leading operator of both retail drug stores and pharmacy benefit management services in the U.S. January 12th the company raised its quarterly dividend 15% to $0.0875/share. The dividend is payable February 2, 2010 to holders of record on January 22, 2010. The yield based on the new payout is 1.03%.
Duncan Energy Partners (DEP) gathers, transports, markets, and stores natural gas, as well as in transporting and storing natural gas liquids (NGLs) and petrochemicals in the U.S. January 12th the company raised its quarterly distribution 4.1% to $0.445/unit. The cash distribution will be paid Friday, February 5, 2010, to unitholders of record at the close of business on Friday, January 29, 2010. The ex-dividend date is January 27, 2010. This distribution is the fifth consecutive quarterly distribution increase. The yield based on the new payout is 7.35%.
Linear Technology (LLTC) manufactures high-performance linear integrated circuits. January 12th the company boosted its quarterly dividend to $0.23/share. The dividend will be paid on February 24, 2010 to stockholders of record on February 12, 2010. LLTC is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 3.08%.
Fifth Street (FSC) is a specialty finance company that lends to and invests in small and mid-sized companies. January 13th the company increased its quarterly dividend 11% to $0.30/share. The dividend is payable on March 30 to shareholders as of the close on March 3. The yield based on the new payout is 10.15%.
Shaw Communications (SJR) is a Canadian communications company that provides broadband cable television, Internet and satellite direct-to-home services to apx. 3.4 million customers. January 14th the company boosted its dividend 5% to $0.8775/share. Shaw’s dividends are declared and paid on a monthly basis and this increase will commence March 30, 2010. The yield based on the new payout is 4.37%.
While a mango tree gives fruit for several generations, a great dividend stock will give increasing dividends each year. For a list of stocks with a long string of consecutive cash dividend increases, see this list.
Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.