It seems that every investing article ends with the same conclusion - you should be buying dividend stocks. Beyond the simple concepts, some of the writers are making really bad recommendations and cross-breeding dividend investing with their preferred form of investing.
Investing in dividend growth stocks is not about exit points, momentum swings, relative strength, sector rotation; instead it is about studying fundamentals, selecting superior stocks and building a portfolio with a long-term horizon. When we buy a dividend stock, we hope to hold it forever.
This week several companies provided their shareholders positive feedback with increased cash dividends:
Skyworks Solutions, Inc. (SWKS) designs, develops, manufactures, and markets analog and mixed signal semiconductors worldwide. June 18th the company increased its quarterly dividend 100% to $0.26 per share. The dividend is payable August 27, 2015 to stockholders of record on August 6, 2015, with an ex-dividend date of August 4, 2015. The yield based on the new payout is 1.0%.
Realty Income Corporation (O) is a publicly traded real estate investment trust investing in commercial real estate in the United States. June 17th the company increased its monthly dividend 0.3% to $0.19 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 5.0%.
Silver Bay Realty Trust Corp (SBY) is an real estate investment trust engaged in the acquisition, renovation, leasing, and management of single-family properties in select markets in the United States. June 17th the company increased its quarterly dividend 33% to $0.12 per share. The dividend is payable July 10, 2015 to stockholders of record on June 29, 2015, with an ex-dividend date of June 25, 2015. The yield based on the new payout is 3.2%.
U.S. Bancorp (USB) is a financial services holding company providing a range of financial services in the United States. June 16th the company increased its quarterly dividend 4.1% to $0.255 per share. The dividend is payable July 15, 2015 to stockholders of record on June 30, 2015, with an ex-dividend date of June 26, 2015. The yield based on the new payout is 2.3%.
Franklin Resources, Inc. (BEN) is a publicly owned asset management holding company that provides services to individuals, institutions, pension plans, trusts, and partnerships. June 16th the company increased its quarterly dividend 25% to $0.15 per share. The dividend is payable July 15, 2015 to stockholders of record on June 30, 2015, with an ex-dividend date of June 26, 2015. The yield based on the new payout is 1.2%.
Newtek Business Services Corp. (NEWT), a business development company, provides financial and business services to the small-and medium-sized business market. June 15th the company increased its quarterly dividend 20% to $0.47 per share. The dividend is payable July 15, 2015 to stockholders of record on June 29, 2015, with an ex-dividend date of June 25, 2015. The yield based on the new payout is 10.9%.
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 O in my Dividend Growth Stocks Portfolio. See a list of all my Dividend Growth Portfolio's holdings here.
