For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success: 1. Opportunity, and 2. Time. There are many valid ways to successfully build long-term wealth. Some involve more risk than others. Being relatively conservative, I have chosen dividend growth stocks as a significant part of my financial plan. Many of today's dividend growth stocks have provided investors financial security for decades.
Below are some companies that understand the importance of growing their cash dividends:
Dow Chemical (DOW) manufactures and supplies chemical products used as raw materials in the manufacturing of customer products and services worldwide. On April 12, the company increased its quarterly dividend 28% to $0.32 per share. The dividend is payable on July 30, 2012, to shareholders of record on June 29, 2012. The yield based on the new payout is 3.9%.
Teekay Offshore Partners (TOO) provides marine transportation, oil production, and storage services to the offshore oil industry. On April 12 the partnership increased its quarterly distribution 2.5% to $0.5125 per unit. The cash distribution is payable on May 14, 2012, to all unit-holders of record on April 23, 2012. The yield based on the new payout is 7.1%.
Targa Resources (TRGP) provides midstream natural gas and natural gas liquid. On April 11 the company increased its quarterly dividend 9% to $0.3650 per share. The dividend is payable on May 16, 2012, to all shareholders of record as of the close of business on April 23, 2012. The yield based on the new payout is 3.2%.
IDEX (IEX) manufactures and sells various pumps, flow meters, other fluidics systems and components, and engineered products worldwide. On April 10 the company increased its quarterly dividend 18% to $0.20 per common share. The dividend is payable April 30, 2012, to shareholders of record as of April 20, 2012. The yield based on the new payout is 2.0%.
Plains All American Pipeline (PAA) engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products. On April 10 the company increased its quarterly distribution 2% to $1.045 per unit. The distribution is payable May 15, 2012, to unit-holders of record at the close of business on May 4, 2012. The yield based on the new payout is 5.4%.
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: No position in the aforementioned stocks. See a list of all my dividend growth holdings here.