As a dividend growth investor I purchase stocks which are attractively valued and which have the business characteristics to keep raising distributions over time. Procter & Gamble is a perfect example of a dividend growth stock, after rewarding its shareholders with its 55th consecutive annual dividend increase.
The Procter & Gamble Company (PG) provides consumer packaged goods in the United States and internationally. The company raised its dividend by % to 52.50 cents/share. This marked the 55th consecutive annual dividend increase for this dividend king. There are only eleven companies which have managed to raise distributions for over half a century. The ten year dividend growth rate for Procter & Gamble is 10.90%. Yield: 3.40%. Check my analysis of the stock.
One sector which consistently pays not only high distributions, but also offers above average yields is master limited partnerships. Last week, several MLPs announced distribution hikes:
Enterprise Products Partners L.P. (EPD) provides a range of services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the continental United States, Canada, and Gulf of Mexico. Last week, the largest master limited partnership announced an increase in its quarterly distributions to 59.75 cents/unit. Enterprise Product Partners has consistently raised distributions for the past fourteen years in a row. The ten year distribution growth was 8.30% annually. Yield: 5.60%. Check my analysis of this MLP.
Plains All American Pipeline, L.P. engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquefied petroleum gas and other natural gas-related petroleum products (LPG) in the United States and Canada. This master limited partnership raised quarterly distributions to 97 cents/unit. Plains All American Pipeline has consistently raised distributions to unitholders for eleven years in a row. Yield: 6.10%
Genesis Energy, L.P. (GEL), together with its subsidiaries, operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States. This MLP raised its quarterly distributions to 40.75 cents/unit. Genesis Energy has raised quarterly distributions to unitholders for eight consecutive years. Yield: 5.90%
Duncan Energy Partners L.P. (DEP) engages in gathering, transporting, marketing, and storing natural gas, as well as in transporting and storing natural gas liquids (NGLs) and petrochemicals in the United States. This MLP raised its quarterly distributions by 2.20% to 4575 cents/unit. This marked the tenth consecutive quarterly distribution increase. Yield: 4.60%
Targa Resources Partners LP (NGLS) provides midstream natural gas and natural gas liquid (NGL) services in the United States. This MLP raised quarterly distributions to 55.75 cents/unit. Targa Resources Partners has raised distributions for 5 years in a row. Yield: 6.50%
Other consistent dividend growth stocks which raised distributions last week include:
United Technologies Corporation (UTX) provides technology products and services to the building systems and aerospace industries worldwide. The company raised its quarterly dividend by 12.90% to 48 cents/share. This marked the seventeenth consecutive annual dividend increase for this dividend achiever. Yield: 2.30%. Check my analysis of the stock.
H.B. Fuller Company (FUL) formulates, manufactures, and markets adhesives, sealants, paints, and other specialty chemical products worldwide. The company raised its quarterly distribution by 7.10% to 7.50 cents/share. This marked the 42nd consecutive annual dividend increase for this dividend champion. Yield: 1.40%
Fastenal Company (FAST), together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies. The company raised its quarterly dividends by 4% to 26 cents/share. This marked the thirteenth consecutive annual dividend increase for this dividend achiever. Yield: 1.60%
Omega Healthcare Investors, Inc. (OHI) operates as a real estate investment trust (REIT) in the United States. The company raised its quarterly dividend by 270% to 38 cents/share. This marked the ninth consecutive annual dividend increase for this REIT. On a cautionary note, the company cut dividend in 2000 and didn’t pay a dividend in 2001 and 2002. Yield: 6.40%
Full Disclosure: Long PG and UTX