13 Stocks Compounding Your Returns With Increased Dividends

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Includes: AON, CE, COST, CP, HAS, HXL, LAZ, MMP, PBCT, PPG, PSXP, RF, SO
by: Dividends4Life

Summary

There is a reason we don't see infomercials selling dividend growth investment strategies.

The compounding power of growing dividends is tremendous, but it takes time.

Below are several companies that are demonstrating the power of compounding dividends by increasing their cash dividends.

Too often we take a short-term approach, to our long-term detriment. There is a reason we don't see infomercials selling dividend growth investment strategies. For those looking to get rich now, a disciplined approach to investing that focuses on the long-term simply isn't appealing. If I knew in my 20's or 30's what I know now about dividend growth stocks, I would likely be retired now. The compounding power of growing dividends is tremendous.

Below are several companies that are demonstrating the power of compounding dividends by increasing their cash dividends:

Magellan Midstream Partners, L.P. (NYSE:MMP) engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. On April 21, the partnership increased its quarterly distribution 2.2% to $0.8025 per unit. The distribution is payable on May 13, 2016 to unitholders of record as on May 2, 2016, with an ex-dividend date of April 28, 2016. The yield based on the new payout is 4.6%.

Regions Financial Corporation (NYSE:RF) provides banking and bank-related services to individual and corporate customers in the United States. On April 21, the company increased its quarterly dividend 8.3% to $0.065 per share. The dividend is payable on July 1, 2016 to stockholders of record as on June 10, 2016, with an ex-dividend date of June 8, 2016. The yield based on the new payout is 2.8%.

PPG Industries, Inc. (NYSE:PPG) manufactures and distributes coatings, specialty materials, and glass products. On April 21, the company increased its quarterly dividend 11% to $0.40 per share. The dividend is payable on June 10, 2016 to stockholders of record as on May 10, 2016, with an ex-dividend date of May 6, 2016. The yield based on the new payout is 1.4%.

People's United Financial, Inc. (NASDAQ:PBCT) operates as the bank holding company for People's United Bank, National Association, that provides commercial banking, retail banking, and wealth management services. On April 21, the company increased its quarterly dividend 1.5% to $0.17 per share. The dividend is payable on May 15, 2016 to stockholders of record as on May 1, 2016, with an ex-dividend date of April 27, 2016. The yield based on the new payout is 4.1%.

Celanese Corporation (NYSE:CE), a technology and specialty materials company, manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products worldwide. On April 21, the company increased its quarterly dividend 20% to $0.36 per share. The dividend is payable on May 12, 2016 to stockholders of record as on May 2, 2016, with an ex-dividend date of April 28, 2016. The yield based on the new payout is 2.0%.

Canadian Pacific Railway Limited (NYSE:CP) operates a transcontinental railway in Canada and the United States. On April 20, the company increased its quarterly dividend 43% to C$0.50 per share. The dividend is payable on July 25, 2016 to stockholders of record as on June 24, 2016, with an ex-dividend date of June 22, 2016. The yield based on the new payout is 1.1%.

Phillips 66 Partners LP (NYSE:PSXP) owns, operates, develops, and acquires crude oil, refined petroleum products, and natural gas liquids pipelines and terminals, as well as other transportation and midstream assets in the United States. On April 20, the partnership increased its quarterly distribution 5% to $0.481 per unit. The distribution is payable on May 12, 2016 to unitholders of record as on May 3, 2016, with an ex-dividend date of April 29, 2016. The yield based on the new payout is 1.9%.

Hexcel Corporation (NYSE:HXL) develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. On April 20, the company increased its quarterly dividend 10% to $0.11 per share. The dividend is payable on May 11, 2016 to stockholders of record as on May 4, 2016, with an ex-dividend date of May 2, 2016. The yield based on the new payout is 1.0%.

Lazard Ltd. (NYSE:LAZ) operates as a financial advisory and asset management firm worldwide. On April 20, the company increased its quarterly dividend 8.6% to $0.38 per share. The dividend is payable on May 13, 2016 to stockholders of record as on May 3, 2016, with an ex-dividend date of April 29, 2016. The yield based on the new payout is 3.8%.

The Southern Company (NYSE:SO) engages in the generation, transmission, and distribution of electricity through coal, nuclear, oil & gas, and hydro resources in the states of Alabama, Georgia, Florida, and Mississippi. On April 15, the company increased its quarterly dividend 3.2% to $0.56 per share. The dividend is payable on June 6, 2016 to stockholders of record as on May 16, 2016, with an ex-dividend date of May 12, 2016. The yield based on the new payout is 4.4%.

Hasbro, Inc. (NASDAQ:HAS) provides children's and family leisure time products and services worldwide. On April 15, the company increased its quarterly dividend 11% to $0.51 per share. The dividend is payable on May 16, 2016 to stockholders of record as on May 2, 2016, with an ex-dividend date of April 28, 2016. The yield based on the new payout is 2.5%.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses offering branded and private-label products in a range of merchandise categories. On April 15, the company increased its quarterly dividend 12% to $0.45 per share. The dividend is payable on May 13, 2016 to stockholders of record as on April 29, 2016, with an ex-dividend date of April 27, 2016. The yield based on the new payout is 1.2%.

Aon plc (NYSE:AON) provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services worldwide. On April 15, the company increased its quarterly dividend 10% to $0.33 per share. The dividend is payable on May 16, 2016 to stockholders of record as on May 2, 2016, with an ex-dividend date of April 28, 2016. The yield based on the new payout is 1.3%.

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.

Full Disclosure: Long PBCT in my Dividend Growth Portfolio, and SO in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

Disclosure: I am/we are long PBCT, SO.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.