Several companies raised distributions over the past week. There were only two companies however which not only announced increases in distributions, but also have boosted dividends for over 5 years in a row. Dividend Growth Investors, who seek consistency in dividend increases could take a note on this companies for further research:
Piedmont Natural Gas Company, Inc. (PNY), is an energy services company, that distributes natural gas to residential, commercial, industrial, and power generation customers in portions of North Carolina, South Carolina, and Tennessee. This dividend champion raised its quarterly distributions by 3.60% to 29 cents/share. This marked the 33rd consecutive annual dividend increase for Piedmont. The company offers a 5% drip discount to investors who enroll in its drip plan and elect to automatically reinvest dividends. Yield: 3.90% (analysis)
Equity LifeStyle Properties, Inc. (ELS) is a publicly owned real estate investment trust (REIT). The firm engages in the ownership and operation of lifestyle oriented properties. The company raised its quarterly distributions by 25% to 37.50 cents/share. This marked the seventh consecutive annual dividend increase for this REIT. Yield: 2.60%
Two other companies which I expect to see increasing dividends in March include PepsiCo (PEP) and Air Products and Chemicals (APD), based off their pattern of historical dividend increases.
PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. PepsiCo has managed to boost distributions for 38 years in a row. Over the past decade the company has managed to increase dividends by 13% per year. (analysis)
Air Products and Chemicals, Inc. (APD) provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. Air Products and Chemicals has managed to raise dividends for 28 years in a row. Over the past decade the company has managed to raise dividends by 10% per year. (analysis)
Currently, Piedmont Natural Gas (PNY) looks attractively valued. I would initiate a position in the company when it yields above 4% when funds are available. Equity LifeStyle Properties (ELS) has a very low yield, especially given the fact that as a REIT it has to distribute almost all of its income to shareholders. At $1.50/share in annual distributions, the payout is well covered from 2010’s FFO of $4/share. There is room for growth in distributions, however there might be better opportunities in the REIT sector.
Full Disclosure: Long APD and PEP
- Dividend Stocks Showing Investors the money
- Twelve Dividend Stocks Growing Distributions
- Nineteen Consistent Dividend Growth Stocks raising dividends
- Sixteen Consistent Dividend Payers Raising Dividens
One of my favorite books on investing is “ The Snowball: Warren Buffett and the Business of Life ” by Alice Schroeder. The book describes ho...
I am incredibly lucky that I have been able to share my dividend investing journey with you over the past eight years. I am also very lucky ...
I expect that this year, I will be able to cover something like 60 - 80% of my targeted annual expenses from dividends alone. This means tha...
In my previous article, I discussed the concept of the dividend snowball as it applies to my dividend portfolio and dividend income. The po...
In a previous article titled, My Dividend Retirement Plan , I outlined the concept of the dividend crossover point. This happens when your d...
In a previous article, I discussed that I will reach Financial Independence some time in 2018 . After I reach the dividend crossover point ,...
One of my largest holdings is McDonald’s (MCD). The company recently raised its quarterly dividend by 4.7% to 89 cents/share. McDonald's...
I view each investment I make as a seed that I plant for the long-term. Some seeds could turn into a tree that would provide fruit (dividen...
One of the biggest mistakes I ever made was not maxing out my 401 (k), IRA and HSA accounts between 2007 and 2012. As a result, I ended up ...
The more I learn and experience about investing, the more convinced I become that doing nothing is the best strategy for long-term success i...