Mid cap stocks can be loosely defined as any stock with a market cap between $2B and $5B. If you are looking to invest in a company that is on its way to breaking the $5B market cap threshold then midcaps are an obvious place to start. Mid Cap stocks with high dividend growth and consistent income increases will make great additions to a large cap income portfolio.
There are almost 200 mid cap stocks that have a dividend yield of 3% but only about 25 of them have a 5 year dividend growth rate and 3 year net income growth rate over 5%. Those are all great dividend fundamentals but we also like to find companies that have raised their dividend for 10 consecutive years or more. Each stock listed here exceeds that criteria.
Eaton Vance Corp (NYSE:EV)
Eaton Vance manages investment funds and provides investment and counseling services to high net worth clients and institutions. They have developed an expertise across a wide range of investment disciplines which allows them to offer many different products and services to their clients.
EV has a dividend yield of 3.4% and a 5 year dividend growth rate of 11.9%. They have a low payout ratio of 41% and have been raising their dividend for 29 consecutive years. Eaton Vance has solid fundamentals but due to its one year performance it does not rank well on our safe dividend stocks list.
Hudson City Bancorp (NASDAQ:HCBK)
Hudson City Bancorp is the holding company for the federally chartered savings bank. The bank is a community retail savings bank that offers deposit services, mortgage loans and consumer loans. It has operations in 10 U.S counties.
HCBK has a dividend yield of 7.6% and a 5 year dividend growth rate of 8.8%. They have a low payout ratio of 48% and have raised their dividend for 11 consecutive years. Their 3 year net income growth rate is 22%.
NSTAR is a energy delivery company that serves around 1.4 million customers in Massachusetts. They deliver electricity and natural gas in over 80 communities.
NST has a dividend yield of 3.9% and a 5 year dividend growth rate of 7%. They have been paying dividends for over 130 years and have raised their dividend for the last 11 years. NST has a 3 year net income growth rate of 17%.
PartnerRe LTD (NYSE:PRE)
PartnerRe is an international life and health insurance company. They provide reinsurance all over the world through its subsidiaries in Europe, Bermuda and the U.S. Their products include weather insurance and credit protection.
PRE has a dividend yield of 3.6% and a 5 year dividend growth rate of 8%. They have a low payout ratio of 20% and have raised their dividend for the last 16 years.
RPM International (NYSE:RPM)
RPM makes and sells specialty chemical products. These products include paints, protective coatings, roofing systems and adhesives. Their business is split into industrial and consumer segments.
RPM has a dividend yield of 3.9% and a 5 year dividend growth rate of 5.2%. They have a payout ratio of 55% and have raised their dividend for 37 consecutive years. They have been paying dividends since 1969 and have a 3 year net income growth rate of 58%.
TC Pipelines (TCLP)
TC Pipelines is a limited partnership that owns and manages an energy infrastructure business. They own four natural gas pipeline systems in North America along with other pipelines in which they have partial ownership, transports natural gas to the Great Lakes, California and the Midwest.
TCLP has a dividend yield of 6.5% and a 5 year dividend growth rate of 5.5%. They have increased the dividend for 11 years in a row. Their 3 year net income growth rate is 15.4%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.