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Every investor wants to earn more. It is how we define "more" and how we go about earning it that defines the type of investor we are. Income investors want more income. Yield is a significant determinate of income. Instead of buying a current high-yield stock, investors in dividend growth stocks prefer to build their own. Granted, the current yield may never be classified as high-yield, but over time the yield-on-cost can reach epic heights.

This week a few companies chose to build a higher yield for their shareholders with higher cash dividends:

El Paso Electric Company (NYSE:EE), a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. On May 31st, the company increased its quarterly dividend 13.6% to $0.25 per share. The dividend is payable June 29, 2012 to shareholders of record on June 15, 2012. The yield based on the new payout is 3.3%.

Epiq Systems, Inc. (NASDAQ:EPIQ) provides integrated technology solutions for the legal profession in the United States and internationally. On May 30th, the company increased its quarterly dividend 30% to $0.065 per share. The quarterly cash dividend is payable August 17, 2012, to stockholders of record at the close of business on July 16, 2012. The yield based on the new payout is 2.3%.

Post Properties, Inc. (NYSE:PPS) is a real estate investment trust that primarily develops, owns, and manages multi-family apartment communities. On May 30th, the company increased its quarterly dividend 13% to $0.25 per share. The dividend is payable July 13, 2012 to shareholders of record as of June 29, 2012. The yield based on the new payout is 2.1%.

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: No position in the aforementioned securities. See a list of all my dividend growth holdings here.

Source: 3 Dividend Stocks Building Higher Yields For Shareholders