Obtaining an edge in investing is important in order to make it in the stock market. One has to find the right strategy that works for them, or otherwise they would not stick with it when times get tough. One strategy that rewards patient investors no matter what the stock market does is called dividend investing. A good and a consistently growing dividend payer that rewards investors with dividends throughout all market conditions, is a must own, since it does not expose its investors to the whims of the market. This also minimizes the risk that investors would have to sell off chunks of their portfolio during adverse market conditions in order to fund their lifestyle. By purchasing the right stock at an attractive valuation, a dividend investor could ignore flash crashes and market volatility and instead simply focus on fundamentals in order to be successful. This strategy does require time and commitment, including searching for hidden dividend gems in such places as the list of weekly dividend increases. Last week there were eight companies which announced their intentions of growing their distributions:
Citizens Holding Company (CIZN) operates as the bank holding company for The Citizens Bank of Philadelphia that provides commercial and personal banking products and services in Mississippi. The company raised its quarterly dividend by 4.8% to 22 cents/share. This marked the eleventh consecutive annual dividend increase for the company. Yield: 4.80%
Graco Inc. (GGG), together with its subsidiaries, provides fluid handling solutions to manufacturing, processing, construction, and maintenance sectors worldwide. It operates in three segments: Industrial, Contractor, and Lubrication. The company raised its quarterly dividend by 5% to 21 cents/share. This marked the fourteenth consecutive annual dividend increase for this dividend achiever. Yield: 2.20%
Enbridge Inc. (ENB) engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. The company raised its quarterly dividend by 15% to 49 cents/share. This international dividend achiever has raised dividends for 15 years in a row. Yield: 3.40%
Lincoln Electric Holdings, Inc. (LECO), through its subsidiaries, manufactures and resells welding and cutting products worldwide. The company raised its quarterly dividend by 10.70% to 31 cents/share. This dividend achiever has raised dividends for 16 years in a row. Yield: 2%
Ecolab Inc. (ECL) engages in the development, manufacture, sale, and service of products that clean, sanitize, and promote food safety and infection prevention. The company raised its quarterly dividend by 13% to 17.50 cents/share. This dividend achiever has raised dividends for 16 years in a row. Yield: 1.50%
Deere & Company (DE) provides products and services primarily for agriculture and forestry worldwide. The company operates in three segments: Agriculture and Turf, Construction and Forestry, and Credit. The company raised its quarterly dividend by 16.7% to 35 cents/share. This marked the eight consecutive annual dividend increase for this dividend challenger. Yield: 1.80%
J&J Snack Foods Corp. (JJSF), together with its subsidiaries, manufactures nutritional snack foods, as well as distributes frozen beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. The company raised its quarterly dividend by 9.30% to 11.75 cents/share. This marked the seventh consecutive annual dividend increase for this dividend challenger. Yield: 1%
OGE Energy Corp. (OGE), together with its subsidiaries, operates as an energy and energy services provider offering physical delivery and related services for electricity and natural gas primarily in the south central United States. The company raised its quarterly dividend by 3.5% to 37.50 cents/share. This marked the fifth consecutive annual dividend increase for OGE Energy Corp. Yield: 3.40%
I was once again able to uncover a hidden dividend growth stock, which was missed by the dividend achievers index. The company is Citizens Holding Company (CIZN), a small bank with a market capitalization of just 88 million dollars, which trades a few thousand shares per day. The low volume alone makes the company “unfit” for the dividend achievers index, despite the fact that the company has kept growing distributions throughout the worst financial crisis since 1929. Back in March 2010 I uncovered Hingham Institution for Savings (HIFS), which has deliver a total return of over 27% since I analyzed the stock. I will be analyzing Citizens Holding Company (CIZN) in a future post.
Full Disclosure: Long HIFS
- A dividend portfolio for the long-term
- How to Uncover Hidden Dividend Gems
- Hingham Institution for Savings (HIFS) Dividend Stock Analysis
- The right time to buy dividend stocks
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