The story of the golden goose describes very well the world of dividend investing. On the outside, dividend stocks act like normal stocks as they go up in bull markets and go down in bear markets. On the inside however, these cash machines generate so much in excess cash flow that they are able to successfully reinvest in their business, while also paying higher dividends every year. Investors who hold onto their dividend growth stocks get a dividend check every quarter. Selling those dividend stocks and investing in the next hot tech stock would mean that investors would not be getting their golden eggs in a timely manner anymore, and would be at the mercy of the markets for their returns.
Several golden geese, announced plans to deliver higher dividends ( larger golden eggs) to their shareholders:
Hingham Institution for Savings (HIFS) provides various financial products and services to individuals and small businesses in Boston and southeastern Massachusetts. The company raised its quarterly distributions by 4% to 25 cents/share. Hingham Institution for Savingsis not a dividend achiever, but has increased its quarterly dividend in each of the past sixteen years. The company also pays a special dividend with its regular dividend payment in the fourth quarter. The stock currently yields 2.40%. (analysis)
Medtronic, Inc. (MDT) manufactures and sells device-based medical therapies worldwide. The company raised quarterly its distributions by 7.80% to 24.25 cents/share. Medtronic is a dividend champion, which has increased its quarterly dividend in each of the past 34 years. The stock currently yields 2.50%. (analysis)
Realty Income Corporation (O) engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. The company raised its quarterly distributions by 0.20% to 14.49 cents/share. Realty Income is a dividend achiever, which has increased its quarterly dividend for 17 years in a row. The stock currently yields 5.30%. (analysis)
W. P. Carey & Co. LLC (WPC), together with its subsidiaries, provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. This dividend achiever raised its quarterly distributions by 7.30% to 55 cents/share. W.P. Carey & Co has increased its quarterly distribution for 14 consecutive years. The company’s units currently yield 5.70%.
Casey’s General Stores, Inc. (CASY), together with its subsidiaries, operates convenience stores under the names of Casey’s General Store, HandiMart, and Just Diesel in the Midwestern states. The company raised distributions by 11.10% to 15 cents/share. This dividend achiever has increased distributions for 12 years in a row. Yield: 1.50%
John Wiley & Sons, Inc. (JW-A), together with its subsidiaries, publishes print and electronic products that provide content and digital solutions to customers worldwide. The company raised distributions by 25% to 20cents/share. This dividend achiever has increased distributions for 18 years in a row. Yield: 1.60%
Best Buy Co. (BBY), Inc. operates as a retailer of consumer electronics, home office products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. The company raised its quarterly distributions by 6.70% to 16 cents/share. Best Buy has increased its quarterly dividend for 9 years in a row. The stock currently yields 2%.
Duke Energy Corporation (DUK) operates as an energy company in the Americas. It operates through three segments: U.S. Franchised Electric and Gas, Commercial Power, and International Energy. The company raised its quarterly distributions by 2% to 25 cents/share. Duke Energy has increased its quarterly distribution for 7 consecutive years. The company’s units currently yield 5.30%.
Currently I find Medtronic (MDT) and Hingham Institution for Savings (HIFS) to be back into buy territory per my entry criteria. I added to my Realty Income (O) position on the recent pullback. Despite the slow distribution growth, I expect Realty Income to start laying larger eggs soon, as it completes more projects.
Full Disclosure: Long MDT, O, HIFS