While Some Stocks Cut Their Dividends, These 11 Stocks Raised Theirs

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Includes: CCL, CINR, EPD, GEL, HCSG, HPT, LAND, OHI, PG, QCOM, TGE
by: Dividends4Life

Summary

Most investors are not surprised when a company cuts its dividend.

They see the early warning signs well in advance of the actual cut.

Ultimately, the ability of a company to pay its dividend is determined by its cash position.

Below are several companies that are NOT cutting their dividends, but instead raising them.

Most investors are not surprised when a company cuts its dividend. They see the early warning signs well in advance of the actual cut. Here are three signs that a company is heading toward a dividend cut:

  1. An abrupt or permanent shift in a company's business model as a result of business conditions.
  2. A dividend yield that is higher than average and/or higher than others in the industry.
  3. Diminishing cash available to pay dividends.

Ultimately, the ability of a company to pay its dividend is determined by its cash position - both cash on its balance sheet and its ability to generate cash flow. Below are several companies that are NOT cutting their dividends, but instead raising them:

Omega Healthcare Investors, Inc. (NYSE:OHI) is a real estate investment firm investing in healthcare facilities, primarily in long-term healthcare facilities in order to create its portfolio. April 14th the company increased its quarterly dividend 1.8% to $0.58 per share. The dividend is payable May 16, 2016 to stockholders of record on May 2, 2016, with an ex-dividend date of April 28, 2016. The yield based on the new payout is 6.6%.

Carnival Corporation (NYSE:CCL) operates as a leisure travel and cruise company in North America, Europe, Australia, and Asia. April 14th the company increased its quarterly dividend 17% to $0.35 per share. The dividend is payable June 17, 2016 to stockholders of record on May 27, 2016, with an ex-dividend date of May 25, 2016. The yield based on the new payout is 2.7%.

Ciner Resources LP (NYSE:CINR) processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. April 14th the partnership increased its quarterly distribution 1.2% to $0.564 per unit. The distribution is payable May 13, 2016 to unitholders of record on April 29, 2016, with an ex-dividend date of April 27, 2016. The yield based on the new payout is 8.1%.

Genesis Energy, LP (NYSE:GEL) operates in the midstream segment of the oil and gas industry. April 13th the partnership increased its quarterly distribution 2.7% to $0.6725 per unit. The distribution is payable May 13, 2016 to unitholders of record on April 29, 2016, with an ex-dividend date of April 27, 2016. The yield based on the new payout is 8.5%.

Hospitality Properties Trust (NYSE:HPT), a real estate investment trust (REIT), engages in buying, owning, and leasing hotels. April 13th the company increased its quarterly dividend 2% to $0.51 per share. The dividend is payable May 19, 2016 to stockholders of record on April 25, 2016, with an ex-dividend date of April 21, 2016. The yield based on the new payout is 7.7%.

Gladstone Land Corporation (NASDAQ:LAND), an externally-managed agricultural real estate investment trust, owns and leases farmland for independent and corporate farming operations in the United States. April 12th the company increased its monthly dividend 3.2% to $0.04125 per share. The dividend is payable May 22, 2016 to stockholders of record on April 22, 2016, with an ex-dividend date of April 20, 2016. The yield based on the new payout is 4.9%.

Tallgrass Energy Partners, LP (TEP) acquires, owns, develops, and operates various midstream energy assets in North America. April 12th the company increased its quarterly dividend 10% to $0.705 per share. The dividend is payable May 13, 2016 to stockholders of record on April 21, 2016, with an ex-dividend date of April 19, 2016. The yield based on the new payout is 7.7%.

Healthcare Services Group, Inc. (NASDAQ:HCSG) provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers and hospitals. April 12th the company increased its quarterly dividend 0.7% to $0.1825 per share. The dividend is payable June 24, 2016 to stockholders of record on May 20, 2016, with an ex-dividend date of May 18, 2016. The yield based on the new payout is 2.0%.

Enterprise Products Partners LP (NYSE:EPD), a master limited partnership, provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. April 8th the partnership increased its quarterly distribution 1.3% to $0.395 per unit. The distribution is payable May 6, 2016 to unitholders of record on April 29, 2016, with an ex-dividend date of April 27, 2016. The yield based on the new payout is 6.5%.

QUALCOMM Incorporated (NASDAQ:QCOM) develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally. April 8th the company increased its quarterly dividend 10% to $0.53 per share. The dividend is payable June 22, 2016 to stockholders of record on June 1, 2016, with an ex-dividend date of May 27, 2016. The yield based on the new payout is 4.2%.

The Procter & Gamble Company (NYSE:PG) manufactures and sells branded consumer packaged products worldwide. April 8th the company increased its quarterly dividend 1% to $0.6695 per share. The dividend is payable May 16, 2016 to stockholders of record on April 18, 2016, with an ex-dividend date of April 14, 2016. The yield based on the new payout is 3.2%.

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 PG in my Dividend Growth Portfolio, and OHI in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

Disclosure: I am/we are long PG, OHI.

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.