Dividends have historically provided 40% of average annual total return performance to investors. Some researchers have found that it was re-invested dividends that contribute to the majority of total long-term returns for investors. Jeremy Siegel is one of those researchers who has found that the compounding effect of re-investing dividends has accounted for 97% of total returns in the US stock market since 1871. Add in dividend growth as an additional compounding component, and investors could achieve very decent total returns over time. While most investors are running away scared from dividend stocks, fearing that more cuts lie ahead, the true dividend investors keep getting their checks in the mail. They know that by investing in non-cyclical names, there is a smaller chance of dividend cuts. Furthermore, by spreading their bets among as many dividend stocks across all sectors and industries as possible, dividend cuts do not affect their lifestyle that much.
Several companies rewarded their long-term shareholders with news of dividend increases last week.
Robert Half International (RHI) announced that its Board has approved a one-cent increase in its quarterly dividend from $0.11 to $0.12 per share. Robert Half International has consistently increased its dividends since 2004. The stock currently yields 2.70%.
Progress Energy (PGN) announced that its Board has approved an increase in its quarterly dividend from $0.615 to $0.62 per common share. Progress Energy is a dividend achiever, which has consistently increased its dividends for twenty one consecutive years. The 4stock currently yields 6.70%.
Diebold (DBD) announced that its Board has approved a 4% increase in its quarterly dividend from $0.25 to $0.26 per common share. Dieboldis a dividend champion which has consistently increased its dividends for fifty-six consecutive years. The stock currently yields 4.00%.
Sigma-Aldrich (SIAL) announced an 11.50% increase in its quarterly dividend from $0.13 to $0.145 per common share. Sigma-Aldrich is a dividend aristocrat, which has consistently increased its dividends for thirty-three consecutive years. The stock currently yields 1.40%.
3M (MMM) announced that its Board has approved a 2% increase in its quarterly dividend from $0.50 to $0.51 per common share. 3M is a dividend aristocrat, which has consistently increased its dividends for fifty-one consecutive years. The stock currently yields 4.00%.
Northeast Utilities (NU) announced that its Board has approved an 11.70% increase in its quarterly dividend from $0.2125 to $0.2375 per share. Northeast Utilities has consistently increased its dividends since 2001. The stock currently yields 4.00%.
Honeywell (HON) announced an increase in its quarterly dividend from $0.275 to $0.30 per share. Honeywell has consistently increased its dividends since 2005. The stock currently yields 3.40%.
FPL Group, Inc (FPL) announced a 6.20% increase in its quarterly dividend from $0.445 to $0.4725 per share. FPL Group, Inc is a dividend achiever has consisently increased its dividends since 1995. The stock currently yields 3.50%.
Full Disclosure: Long MMM
- Why do I like Dividend Aristocrats?
- Dividend Aristocrats List for 2009
- My Dividend Growth Plan - Diversification
- Dividend Conspiracies
As we all know, the stock market is at an all time high. That is despite the fact that earnings for the US corporations have been flat for ...
As part of my portfolio monitoring process , I evaluate the list of dividend increases every week. It is helpful to monitor how my investmen...
The ultimate goals of everyone reading this site is to retire wealthy and to stay retired. Financial independence provides flexibility, fre...
Right now, many investors are sitting on huge unrealized gains in the companies they have bought years ago. I am in those shoes too. However...
Last week I shared with you a list of nine dividend champions , which I believed were attractively valued. Today I am sharing with you a few...
After observing market behavior for 20 years, I have come to the conclusion that many investors do not have a clue about how to make money i...
It seems like international investing is all the rage these days. It seems like everywhere I look, someone is recommending investors to add ...
I do not like it, when my dividend paying companies are acquisition targets. Last week, shares of Hershey (HSY) increased to an all-time ...
General Mills, Inc. (GIS) manufactures and markets branded consumer foods in the United States and internationally. It also supplies branded...
Many of you are aware that I have been a big fan of tax-deferred investing over the past three – four years. After my awakening moment in l...