Seeking Alpha
Large-cap, deep value, dividend investing, event-driven
Profile| Send Message|
( followers)

Summary

  • Each of the three companies selected have recently hiked their quarterly dividend by at least 8%.
  • Each of the three companies selected have demonstrated 5-year dividend growth rates of at least 50%.
  • By rewarding shareholders through the continued increase of their quarterly dividends, I strongly believe all three should be added to one's income-driven portfolio.

As an income-driven investor, a company's commitment to return value to its shareholders through the continued increase of its quarterly dividend on an annualized goes a long way.

In this article, I intend on highlighting three companies that have recently announced quarterly dividend hikes of at least 8% and have also demonstrated 5-year dividend growth rates of at least 50%.

#1 - Altria Group (NYSE:MO) - Based in Richmond, Virginia, Altria Group is a leading manufacturer of cigarettes, smokeless products, and wine in both the United States and throughout the world. On August 21, 2014, the company increased its quarterly dividend by $0.04/share, or 8.3%, to $0.52/share. As of Friday, August 22, shares of MO were yielding 4.51% ($2.08).

Altria Group's five-year dividend growth is also notably solid. Between September 2009 and September 2014, investors have seen Altria Group increase its quarterly payout a total of seven times, from $0.34/share (September 2009) to $0.52/share (September 2014), which not only represents an overall increase of $0.18/share, but also demonstrates a 5-year dividend growth rate of 52.94%.

#2 Illinois Tool Works (NYSE:ITW) - Based in Glenview, Illinois, Illinois Tool Works Inc. produces and sells engineered fasteners and components, equipment, consumable systems, and other specialty products while operating through a total of seven segments. On August 8, 2014, the company increased its quarterly dividend by $0.063/share, or 15%, to $0.485/share. As of Friday, August 22, shares of HCC were currently yielding 2.19%. ($1.94).

Illinois Tool Works has also demonstrated a five-year dividend growth rate that is quite solid. Between September 2009 and September 2014, investors have seen Illinois Tool Works increase its quarterly payout a total of six times, from $0.31/share (September 2009) to $0.485/share (October 2014), which not only represents an overall increase of $0.175/share, but also demonstrates a 5-year dividend growth rate of 56.45%.

#3 HCC Insurance Holdings (NYSE:HCC) - Based in Houston, Texas, HCC Insurance underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit, and International. On August 20, 2014, the company increased its quarterly dividend by $0.07/share, or 31%, to $0.295/share. As of Friday, August 22, shares of HCC were currently yielding 2.38%. ($1.18).

HCC Insurance Holdings' five-year dividend growth is certainly the most impressive of the group. Between September 2009 and September 2014, investors have seen HCC Insurance increase its quarterly payout a total of six times, from $0.135/share (September 2009) to $0.295/share (October 2014), which not only represents an overall increase of $0.16/share, but also demonstrates a 5-year dividend growth rate of 118.51%.

Conclusion: For those of those you who may be considering a position in any of the above mentioned stocks, I'd continue to pay close attention to the long-term dividend of each over the next 12-24 months and also be on the lookout for any news regarding the enhancement of shareholder value, which would include but not be limited to, such things as share buybacks, special dividends, and stock splits.

Source: 3 Stocks Hiking Dividends At Least 8% And With 5-Year Dividend Growth Rates Of At Least 50%