Dividend Growth Stocks
The stocks which I classify as dividend growth stocks include the dividend achievers, dividend aristocrats and dividend champions. These are all stocks which have increased distributions for over ten years in a row. A rising dividend payment would increase your yield on cost over time, despite the average current yield on most issues being close to the yields on major market indices.
Colgate-Palmolive Company, (CL) together with its subsidiaries, manufactures and markets consumer products worldwide. The company increased its quarterly dividend by 20.40% to 53 cents/share. This is the forty-seventh consecutive dividend increase for Colgate-Palmolive, which is a dividend champion. The stock yields 2.70%. (analysis)
Commerce Bancshares, Inc., (CBSH) is a bank holding company, engages in general banking business. It offers retail, corporate, investment, trust, and asset management products and services to individuals and businesses. The company hiked its quarterly dividend by 2.80% to 23.50 cents/share. Commerce Bancshares is a dividend champion, which has raised dividends for forty-two years in a row. The stock currently yields 2.50%. (analysis)
Archer-Daniels-Midland Company (ADM) procures, transports, stores, processes, and merchandises agricultural commodities and products in the United States and internationally. The company raised its quarterly dividend by 7.10% to 15 cent/ share. This dividend aristocrat has raised distributions for thirty-five years in a row. The stock currently yields 2%. (analysis)
Bemis Company, Inc. (BMS) manufactures and sells flexible packaging products and pressure sensitive materials primarily in the United States, Canada, Mexico, South America, Europe, and the Asia Pacific. The company’s board of directors approved a 2.20% increase in its quarterly distributions to 23 cents/share. Bemis is a dividend aristocrat, which has managed to boost dividends for twenty-seven consecutive years. The stock yields 3.20%. (analysis)
Health Care Property Investors, Inc. (HCP) operates as a real estate investment trust in the United States. The company raised its dividends by 1.10% to 46.5 cents/share. This is the twenty fourth consecutive annual dividend increase for this dividend achiever. The stock currently yields 6.40%.
Ross Stores, Inc.,(ROST) together with its subsidiaries, operates two chains of off-price retail apparel and home accessories stores in the United States. The company raised its dividends by 45% to 16 cents/share. Ross Stores is a dividend achiever which has raised distributions for 16 consecutive years. The stock yields 1.40%.
Potential Dividend Achievers
AGL Resources Inc.,(AGL) an energy services holding company, engages in the distribution of natural gas primarily in Florida, Georgia, Maryland, New Jersey, Tennessee, and Virginia. The company boosted its dividend by 2.30% to 44 cents/share. This is the eight consecutive annual dividend increase since 2003. The stock currently yields 4.90%.
L-3 Communications Holdings, Inc. (LLL) provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; and aircraft modernization and maintenance, and government services in the United States and internationally. The company hiked its quarterly dividend by 14% to 40 cents/share. This is the sixth consecutive annual dividend increase for the company. The stock yields 1.90%.
J.B. Hunt Transport Services, Inc. (JBHT), together with its subsidiaries, operates as a surface transportation company in North America. The company announced its plans to boost dividends by 9% to 12 cents/share. This is the sixth consecutive dividend increase for the company since 2004. The stock currently yields 1.40%.
Boardwalk Pipeline Partners, LP, (BWP) through its subsidiaries, engages in the interstate transportation and storage of natural gas in the United States. This master limited partnership raised its distributions to 50 cents/unit. Boardwalk Pipeline Partners has raised distributions every quarter since going public in 2006. The units currently yield 6.50%.
The Dun & Bradstreet Corporation (DNB) provides commercial information and insight on businesses worldwide. The company raised its quarterly dividend to 35 cents/share. This is the third consecutive dividend increase since the company started paying dividends in 2007. The stock yields 1.70%.
PennantPark Investment Corporation (PNNT) is a publicly listed business development firm specializing in direct and mezzanine investments in middle market companies. The company raised its quarterly distributions by 4% to 26 cents/share. This is the second quarterly distribution increase for this BDC over the past one year. The company is on track to record dividend increases for a third year in a row. The stock yields 11.40%.
Unitrin, Inc., (UTR) through its subsidiaries, engages in the property and casualty insurance, life and health insurance, and automobile finance businesses primarily in the United States. The company raised its dividends by 10% to 22 cents/share. This is the first dividend increase since the company cut distributions in 2008. The stock yields 3.40%.
News Corporation (NWS) (NWSA) operates as a diversified media company worldwide. The company raised its dividends by 25% to 7.5 cents/share. The company currently yields 1.10% and also does not have a history of consistent dividend increases.
Time Warner Inc (TWX) operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The company announced plans to boost its dividend by 13.30% to 21.25 cents/share. This is the first dividend increase since 2007. The stock currently yields 3.10%.
The Hershey Company (HSY) engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, food and beverage enhancers, and gum and mint refreshment products. The company raised its dividends by 7.60% to 32 cents/share. This is the first dividend increase for the company since 2007. The stock currently yields 3.40%.
Source Capital Inc. (SOR) is a close-ended equity fund launched and managed by First Pacific Advisors, LLC. The fund invests in the public equity markets of the United States. The company raised its dividends by 20% to 60 cents/share. Source Capital has fluctuating dividends. The stock yields 9.40%.
Hasbro, Inc. (HAS) engages in the design, manufacture, and marketing of games and toys. The company raised its dividends by 25% to 25 cents/share. This was the first dividend increase for Hasbro since 2008. The stock yields 3.20%.
United Parcel Service, Inc. (UPS), a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. The company raised its payment by 4.40% to 47 cents/share. This is the first dividend increase for UPS since 2008.
Temple-Inland Inc. (TIN), through its subsidiaries, manufactures corrugated packaging and building products primarily in the United States and Mexico. The company raised its dividend by 10% to 11 cents/share. The stock currently yields 2.60%.
Full Disclosure: Long ADM,
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