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Below is a list of 9 stocks yielding more than 3% with a dividend payout ratio less than 70% as of the close on August 13th. In addition, I required the stocks have a recent history of rising dividends. I looked for:
    • Dividend Percent Change, Year Over Year (%) > 10,
    • Dividend Growth Rate, 3 Years (%) > 15,
    • Dividend 5 Year Growth Rate (%) > 20.
The screen was done using stockscreen123. The most recent screen I conducted in July is here and the previous April screen is here.

The most recent screen shows little turnover from last month. Dividend increases and payout ratios typically do not change frequently from month to month, so the primary driver in monthly turnover is if share prices increase enough to pull the yield below 3%. In fact, when compared to the screen I ran last month there are no new additions and 2 stocks no longer qualify - (NASDAQ:CALM) and (NASDAQ:LLTC).

McDonald's (NYSE:MCD) is an interesting stock in that it has continued to prove resilient, even in the face of a deteriorating broader market, and it is in part due to its yield, in excess of 3% and its ability to continue to increase dividends. See the 1 year chart below courtesy of Finviz which shows MCD near its 52 week high along with the second monthly chart dating back to 2002:

(Click to enlarge)

As I stated previously, for investors worried about equity markets or who simply want equity income, high yield stocks with strong cash flow and a history of dividend increases may offer a small buffer for skittish investors who still want to maintain equity exposure.

Further due diligence should be conducted on each stock in the list and past dividend increases do not guarantee they will continue.


Ticker Name Yield Div% ChgA Div3Y Cgr% Div5Y Cgr% Pay RatioA
(NYSE:DRI) Darden Restaurants, Inc. 3.16 25 29.54 65.72 34.4
(NYSE:EOC) Empresa Nacional de Electrici 3.87 49.23 17.59 22.04 36.96
(NYSE:FLO) Flowers Foods, Inc. 3.35 17.39 28.7 26.22 47.71
(NASDAQ:HCBK) Hudson City Bancorp, Inc. 5.18 31.11 25.29 22.03 54.7
(NYSE:LMT) Lockheed Martin Corporation 3.48 27.87 23.24 20.79 30.03
(NASDAQ:LPHI) Life Partners Holdings, Inc. 5.88 268.97 85.36 52.91 54.04
(MCD) McDonald's Corporation 3.05 26.15 27.03 30.1 49.12
(OSG) Overseas Shipholding Group In 5.09 16.67 23.68 20.11 67.16
(NYSE:TKC) Turkcell Iletisim Hizmetleri 4.19 45.2 20.98 32.27 65.2

Disclosure: None

Source: 9 High-Yield, Dividend-Growing Stocks