10 Stocks Providing Positive Feedback With Increased Dividends

Summary

• It seems that every so many years, the market turns down and someone declares the death of buy-and-hold.
• As long-term dividend investors, our focus should be on acquiring fundamentally sound dividend growth stocks at a reasonable valuation and maintaining our asset allocation.
• This week, several companies provided their shareholders positive feedback with increased cash dividends.

It seems that every so many years, the market turns down and someone declares the death of buy-and-hold. Some even go as far to say that Warren Buffett has lost his touch. With time on their side, the buy-and-hold investors and Mr. Buffett always seem to make a spectacular rebound. As long-term dividend investors, our focus should be on acquiring fundamentally sound dividend growth stocks at a reasonable valuation and maintaining our asset allocation.

This week, several companies provided their shareholders positive feedback with increased cash dividends:

Vectren Corporation (VVC) provides energy delivery services to residential, commercial, and industrial and other contract customers in Indiana and Ohio. November 6th the company increased its quarterly dividend 5.6% to $0.38 per share. The dividend is payable December 1, 2014 to stockholders of record on November 17, 2014, with an ex-dividend date of November 13, 2014. The yield based on the new payout is 3.4%.

Spectra Energy Partners, LP (SEP) operates as an investment arm of Spectra Energy Corp. and engages in the transportation of natural gas through interstate pipeline systems, and the storage of natural gas in underground facilities. November 5th the company increased its quarterly distribution 1.8% to $0.57625 per unit. The distribution is payable November 26, 2014 to unitholders of record on November 17, 2014, with an ex-dividend date of November 13, 2014. The yield based on the new payout is 4.3%.

Rockwell Automation, Inc. (ROK) provides industrial automation power, control, and information solutions. November 5th the company increased its quarterly dividend 12% to $0.65 per share. The dividend is payable December 10, 2014 to stockholders of record on November 17, 2014, with an ex-dividend date of November 13, 2014. The yield based on the new payout is 2.4%.

Atmos Energy Corporation (ATO) is engaged in the distribution, transmission, and storage of natural gas in the United States. November 5th the company increased its quarterly dividend 5.4% to $0.39 per share. The dividend is payable December 8, 2014 to stockholders of record on November 24, 2014, with an ex-dividend date of November 20, 2014. The yield based on the new payout is 2.9%.

AmTrust Financial Services, Inc., (AFSI) underwrites and provides property and casualty insurance in the United States and internationally. November 4th the company increased its quarterly dividend 25% to $0.25 per share. The dividend is payable January 15, 2014 to stockholders of record on January 2, 2014, with an ex-dividend date of December 30, 2014. The yield based on the new payout is 2.0%.

Och-Ziff Capital Management Group LLC (OZM) is a publicly owned investment manager that provides investment advisory services for its clients. November 4th the company increased its quarterly dividend 18% to $0.20 per share. The dividend is payable November 21, 2014 to stockholders of record on November 14, 2014, with an ex-dividend date of November 12, 2014. The yield based on the new payout is 7.3%.

Colony Financial, Inc. (CLNY), a real estate investment and finance company, focuses on acquiring, originating, and managing various real estate-related debt and equity investments. November 4th the company increased its quarterly dividend 2.8% to $0.37 per share. The dividend is payable January 15, 2014 to stockholders of record on December 31, 2014, with an ex-dividend date of December 29, 2014. The yield based on the new payout is 6.7%.

Agrium Inc. (AGU) produces, retails, and distributes the crop nutrients, crop protection products, seeds, and agronomics primarily in North America, South America, Europe, and Australia. November 3rd the company increased its quarterly dividend 4% to $0.78 per share. The dividend is payable January 21, 2014 to stockholders of record on December 31, 2014, with an ex-dividend date of December 29, 2014. The yield based on the new payout is 3.2%.

Mercury General Corporation (MCY) writes personal automobile insurance solutions along with homeowners, commercial automobile and property, mechanical breakdown, fire, and umbrella insurance. November 3rd the company increased its quarterly dividend 0.4% to $0.6175 per share. The dividend is payable December 26, 2014 to stockholders of record on December 12, 2014, with an ex-dividend date of December 10, 2014. The yield based on the new payout is 4.7%.

Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company worldwide. October 31th the company increased its quarterly dividend 15% to $0.5175 per share. The dividend is payable December 10, 2014 to stockholders of record on November 20, 2014, with an ex-dividend date of November 18, 2014. The yield based on the new payout is 2.2%.

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 VVC, MCY in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.

Analyst’s Disclosure: The author is long VVC, MCY. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Comments

[zeikette1]

If you had , say $10,000 to invest. And you had to put together the most affordable div. stock,(read less then 40 $ per), which would you purchase to optimize the most amount of stock for your buck , and with the most amount of return?
It is all fine and well for you to suggest companies you like , but if you had to feed a poor family off the dividends earned in cash, which would be the most profitable , with the situation of today, i know you are not a future see'er, and do not expect all companies to fair well all the time. I shall be very curious as to your picks of this list , or any other "bag of tricks" you may hold, to come up with the biggest payoff in cash.

;) Andrea

[cpa28761]

Andrea:

It is not possible to feed a poor family from the income earned by a $10,000 portfolio. Therefore, there must be some other sources of income.

If available income must be supplemented, then higher yielding stocks such as T should be pursued. Investments such as MLP's and preferred stocks are alternatives. At the same time, I would avoid risky investments that involve yield chasing. A poor family can't afford that.

If, in turn, the family is able to pull itself up by its bootstraps, growth should be pursued with stocks that pay dividends.

Sheldon

[Hardog]

Nice set of stocks tks.

[Dividend Diplomats]

Thanks for putting the list together. I always have my eye on Honeywell, but I never pull the trigger on purchasing the stock. It looks like I missed a great opportunity when the company suddenly dipped to $84 for a brief period. The P/E is not outrageous and the company has a strong balance sheet, earnings growth, and dividend growth. Maybe it might be time to take a closer look??

I am always a fan of articles summarizing dividend increases. It is our main focus as dividend investors! Keep up the great work.

~The Dividend Diplomats