Any income investor will tell you that it is important for a company to sustain its dividend. However, as an investor in dividend growth stocks, it is not enough to simply sustain the dividend -- we want to own companies that are capable of sustained dividend growth. Needless to say, this is a little more difficult to accomplish, but well worth the time to find companies that can deliver on this expectation.
Below are several companies growing their dividends and sending more cash to their shareholders:
Manulife Financial Corporation (MFC) provides financial protection and wealth management products and services to individual, corporate, and business customers primarily in Asia, Canada, and the United States. May 7th the company increased its quarterly dividend 9.7% to C$0.17 per share. The dividend is payable June 19, 2015 to stockholders of record on May 20, 2015, with an ex-dividend date of May 18, 2015. The yield based on the new payout is 3.0%.
TELUS Corporation (TU) provides a range of telecommunications products and services in Canada. May 7th the company increased its quarterly dividend 5% to C$0.42 per share. The dividend is payable July 2, 2015 to stockholders of record on June 10, 2015, with an ex-dividend date of June 8, 2015. The yield based on the new payout is 4.0%.
Phillips 66 (PSX) operates as an energy manufacturing and logistics company. May 6th the company increased its quarterly dividend 12% to $0.56 per share. The dividend is payable June 1, 2015 to stockholders of record on May 18, 2015, with an ex-dividend date of May 14, 2015. The yield based on the new payout is 2.8%.
Cardinal Health, Inc. (CAH), a healthcare services company, provides pharmaceutical and medical products and services in the United States and internationally. May 6th the company increased its quarterly dividend 13% to $0.387 per share. The dividend is payable July 15, 2015 to stockholders of record on July 1, 2015, with an ex-dividend date of June 29, 2015. The yield based on the new payout is 1.8%.
PepsiCo, Inc. (PEP) operates as an international food and beverage company. May 5th the company increased its quarterly dividend 7.3% to $0.7025 per share. PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2015 marks the company's 43rd consecutive annual dividend increase. The dividend is payable June 30, 2015 to stockholders of record on June 5, 2015, with an ex-dividend date of June 3, 2015. The yield based on the new payout is 2.9%.
Occidental Petroleum Corporation (OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. May 5th the company increased its quarterly dividend 4.2% to $0.75 per share. The dividend is payable July 15, 2015 to stockholders of record on June 10, 2015, with an ex-dividend date of June 8, 2015. The yield based on the new payout is 3.8%.
Trinity Industries, Inc. (TRN) provides various products and services for the energy, transportation, chemical, and construction sectors in the United States and internationally. May 4th the company increased its quarterly dividend 10% to $0.11 per share. The dividend is payable July 31, 2015 to stockholders of record on July 15, 2015, with an ex-dividend date of July 13, 2015. The yield based on the new payout is 1.5%.
STAG Industrial, Inc. (STAG) is a real estate investment trust that is engaged in the investment and management of real estate assets in the United States. May 4th the company increased its monthly dividend 2.2% to $0.34 per share. The dividend is payable August 17, 2015 to stockholders of record on July 31, 2015, with an ex-dividend date of June 29, 2015. The yield based on the new payout is 6.3%.
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 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.
Disclosure: Long PEP in my Dividend Growth Portfolio. See a list of all my Dividend Growth Portfolio's holdings here.
