Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep pace, hedge funds, mutual funds, institutional investors and multi-billion dollar money managers spend large sums of money on high-tech tools to give them an edge. So, what chance does a small individual investor have?
Not much of a chance if you let the Wall Street players define the rules. However, you might just slay the giant if you define the rules and focus on quality blue chip dividend growth stocks and long-term, buy-and-hold and investing strategy.
Below are two companies building future yield with increased cash dividends for their shareholders:
Spectra Energy (SE) in an integrated natural gas holding company engaged in gas gathering and processing, and gas transportation and storage, in the U.S. and Canada, and provides retail gas distribution to 1.3 million customers in Ontario, Canada. January 3rd the company increased its quarterly dividend 4% to $0.26/share. The dividend is payable on March 14, 2011, to shareholders of record at the close of business on February 11, 2011. The ex-dividend date is February 9, 2011. The yield based on the new payout is 4.2%.
Bank of the Ozarks (OZRK) owns Bank of the Ozarks, which provides retail & commercial banking products and services via 70 banking and two loan production offices in AR, TX, NC (Dec. 31, 2007). January 3rd the company raised its quarterly cash dividend 6.25% to $0.17/share. The dividend is payable January 21, 2011 to shareholders of record as of January 14, 2011. The Company has increased its quarterly dividend in four of the last five quarters. OZRK is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 1.5%.
In addition to the above, the following stocks will go Ex-dividend in January:
- Urstadt Biddle Properties (UBA) went Ex-dividend on 1/3/2011, Yield: 5.1%
- Erie Indemnity Company (ERIE) went Ex-dividend on 1/3/2011, Yield: 3.1%
- ABM Industries Inc. (ABM) went Ex-dividend on 1/4/2011, Yield: 2.1%
- AT&T Inc. (T) went Ex-dividend on 1/5/2011, Yield: 5.8%
- Sysco Corp. (SYY) went Ex-dividend on 1/5/2011, Yield: 3.5%
- NSTAR (NST) went Ex-dividend on 1/5/2011, Yield: 4.0%
- Universal Corp. (UVV) went Ex-dividend on 1/6/2011, Yield: 4.8%
- Graco Inc. (GGG) will go Ex-dividend on 1/14/2011, Yield: 2.1%
- Hormel Foods Corp. (HRL) will go Ex-dividend on 1/20/2011, Yield: 2.0%
- Pentair Inc. (PNR) will go on Ex-dividend on 1/27/2011, Yield: 2.1%
Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends or are ex-dividend in January; it is not a list of recommend 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 T, SYY. See a list of all my income holdings here.