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
Every dollar that you have in your possession can be traced back to you exchanging your labor for money. The labor you provided was essentia...
A common question I receive deals with the amount of money needed for retirement. This amount varies depending to personal situations. 1...
Last month, I discussed with you reasons to have your own unique investment strategy . I reached the following conclusion: If you follow ...
I invest in dividend growth stocks in order to generate a rising stream of dependable dividend income. Dividend income is more stable , and ...
I recently read the following announcement from Vanguard : " Vanguard Dividend Growth Fund (VDIGX) is closed to new investors as of J...
It is important to understand the simple math behind early retirement. Your savings rate, and asset returns will determine how long it takes...
This guest post was written by Joe Ferris, who is a long-time reader of the site. The author now manages money professionally and creates in...
The most common question or variation of a question I get concerns the amount of time to monitor my portfolio . This includes monitoring exi...
I invest in dividend growth stocks in order to generate a rising stream of dependable dividend income. Dividend income is more stable than c...
Last week, I wrote a groundbreaking article, which outlined the basic premise that interest rate levels affect P/E ratios that investors ar...