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Summary

  • What appears to be a safe investment in a federally insured CD or money market, may not even be covering inflation.
  • Growth stocks don't always grow. The astute conservative investor turns to solid dividend paying stocks with a track record of growing their dividends each year.
  • Below are several companies that have recently elected to send more cash to their shareholders in the form of increased dividends.

If your goal is to accumulate wealth for a comfortable retirement, then there is no risk-free path. Throughout time every angle has been tried and failed. What appears to be a safe investment in a federally insured CD or money market, may not even be covering inflation. Growth stocks don't always grow. The astute conservative investor turns to solid dividend paying stocks with a track record of growing their dividends each year.

Below are several companies that have recently elected to send more cash to their shareholders in the form of increased dividends:

Walgreen Co. (WAG) operates a network of drugstores providing consumer goods and services, pharmacy, and health and wellness services. August 6th, the company increased its quarterly dividend 7.1% to $0.3375 per share. The dividend is payable September 12, 2014 to stockholders of record on August 21, 2014. The yield based on the new payout is 2.2%.

Bank of America Corporation (NYSE:BAC) provides various banking and financial products and services. August 6th, the company increased its quarterly dividend 500% to $0.05 per share. The dividend is payable September 26, 2014 to stockholders of record on September 5, 2014. The yield based on the new payout is 1.3%.

Monsanto Company (NYSE:MON) provides agricultural products for farmers worldwide. August 5th, the company increased its quarterly dividend 14% to $0.49 per share. The dividend is payable October 31, 2014 to stockholders of record on October 10, 2014. The yield based on the new payout is 1.7%.

Main Street Capital Corporation (NYSE:MAIN) is a business development company specializing in long-term equity, equity related, and debt investments in small and lower middle market companies. August 5th, the company increased its monthly dividend 3.0% to $0.17 per share. The dividend is payable October 15, 2014 to stockholders of record on September 19, 2014. The yield based on the new payout is 6.6%.

Leggett & Platt, Incorporated (NYSE:LEG) designs and produces a range of engineered components and products worldwide. August 5th, the company increased its quarterly dividend 3.3% to $0.31 per share. The dividend is payable October 15, 2014 to stockholders of record on September 15, 2014. The yield based on the new payout is 3.7%.

Burger King Worldwide, Inc. (BKW) operates and franchises fast food hamburger restaurants under the Burger King brand name. August 1st, the company increased its quarterly dividend 14% to $0.08 per share. The dividend is payable August 26, 2014 to stockholders of record on August 12, 2014. The yield based on the new payout is 1.2%.

Union Pacific Corporation (NYSE:UNP) Union Pacific Railroad Company provides rail transportation services in the United States. July 31st, the company increased its quarterly dividend 10% to $0.50 per share. The dividend is payable October 1, 2014 to stockholders of record on August 29, 2014. The yield based on the new payout is 2.0%.

Marathon Petroleum Corporation (NYSE:MPC) is engaged in refining, transporting, and marketing petroleum products primarily in the United States. July 31st, the company increased its quarterly dividend 19% to $0.50 per share. The dividend is payable September 10, 2014 to stockholders of record on August 20, 2014. The yield based on the new payout is 2.4%.

The Hartford Financial Services Group, Inc. (NYSE:HIG) provides insurance and financial services to individual and business customers primarily in the United States and Japan. July 31st, the company increased its quarterly dividend 20% to $0.18 per share. The dividend is payable October 1, 2014 to stockholders of record on September 2, 2014. The yield based on the new payout is 2.1%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommended buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long LEG in my Dividend Growth Portfolio and long MAIN in my High-Yield portfolio. See a list of all my dividend growth holdings here.

Disclosure: The author is long LEG, MAIN. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Source: 9 Stocks Sending More Cash To Shareholders With Increased Dividends