When was the last time you received a raise at your day job? Many investors slave away at their day jobs, working long hours and meeting unreasonable deadlines in an effort to receive higher pay. Many dividend growth investors who own shares of some of the most prominent dividend champions keep getting raises in their dividend income every year. They are in effect making higher incomes by having their money work for them, and profiting by the hard work occuring at the firms they have invested in. It is especially intriguing to note that some companies like Coca-Cola have managed to raise distributions every year for half a century. In order to profit from this investing strategy however, investors need to purchase quality wide-moat stocks, which pay a dividend and have the corporate culture that shares a portion of rising profits with shareholders.
Over the past week, six prominent dividend growth stocks raised distributions:
Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. The company raised its quarterly dividend by 6.30% to 51 cents/share. This dividend aristocrat has raised distributions for 40 years in a row. Yield: 3.80% (analysis)
The Coca-Cola Company (KO) manufactures, distributes, and markets nonalcoholic beverages worldwide. The company raised its quarterly dividend by 8.50% to 51 cents/share. This dividend aristocrat has raised distributions for 50 years in a row. After this action, there are now twelve companies in the world which have managed to boost distributions for over 50 years in a rw each. Yield: 3% (analysis)
The Sherwin-Williams Company (SHW) engages in the development, manufacture, distribution, and sale of paints, coatings, and related products primarily in North and South America, the Caribbean region, Europe, and Asia. The company raised its quarterly dividend by 6.80% to 39 cents/share. This dividend aristocrat has raised distributions for 34 years in a row. Yield: 1.60%
Sigma-Aldrich Corporation (SIAL), a life science and high technology company, develops, manufactures, purchases, and distributes various chemicals, biochemicals, and equipment worldwide. The company raised its quarterly dividend by 11.10% to 20 cents/share. This dividend aristocrat has raised distributions for 36 years in a row. Yield: 1.20%
Transcanada Corporation (TRP) operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. The company raised its quarterly dividend by 4.80% to 44 cents/share. This international dividend achiever has raised distributions for 12 years in a row. Yield: 4.20%
Buckeye Partners, L.P. (BPL) owns and operates refined petroleum products pipeline systems in the United States. This master limited partnership raised quarterly distributions to $1.0375/ unit. This was the fourth distribution increase over the past 12 months, and represented a 5.10% increase over the distribution paid in Q1 2011. Buckeye Partners is a dividend achiever which has boosted distributions for 16 years in a row. Yield: 6.70%
Full Disclosure: Long ABT, KO, SHW
- Dividend Aristocrats List for 2012
- Master Limited Partnerships (MLPs) – an island of opportunity for dividend investors
- Dividend Achievers Offer Income Growth and Capital Appreciation
- Two Companies Raising Dividends for Over 50 years
This is a guest post by Mike, aka The Dividend Guy. He authors The Dividend Guy Blog since 2010 and manages portfolios at Dividend Stocks Ro...
Dividend growth stocks are the gift that keeps on giving . I like the fact that most of the work in selecting good dividend growth stocks is...
I pick my own dividend paying stocks in my taxable accounts, and wouldn’t have it any other way. I know some of you have mentioned that they...
I am a fairly frugal person . An example of that is the fact that I drive a 15 year old car. I would likely keep driving this car until all ...
My retirement strategy is focused on building a dividend portfolio of high quality blue chips, which are reliable dividend payers. For my di...
This is a guest post from Keith Park, who writes about dividend investing on DivHut . Keith has been a dividend growth investor since 2007 f...
While this site is mostly about dividend investing, the topic today will be more based towards personal finance. This is because I am increa...
Mark Seed is passionate about personal finance and investing and is the blogger behind My Own Advisor . Mark is currently investing in divi...
This is a guest contribution from Liquid at Freedom 35 Blog . Liquid is an avid investor in the North American financial markets and blogs a...
Oil and gas prices are cyclical in nature. The recent downturn in energy prices that started in 2014 has pushed energy stock prices, earnin...