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
The goal of every dividend investor is to generate dividend income that is larger than their annual expenses. This coveted goal is called th...
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 have been a dividend growth investor for over 7-8 years now. The reason why I have somewhere between 85% - 90% of my networth in dividend ...
As a dividend investor, my main goal is to attain financial independence when dividend income exceeds expenses by an adequate margin of saf...
I love it when the stock market goes on sale, like it has been so far in the past two - three weeks. For aspiring dividend growth investors,...
There are many risks to investing . One of the major risks that could ruin a portfolio’s chances of generating adequate dividends are p...
How do you define success? To me, success is the freedom to do my own thing, and the ability to reach my goals. Given the fact that I am a f...
One of the biggest sins in investing, is investing money without a clear plan or strategy to accomplish specific goals . This investing sin...
Before I begin my message, I wanted to wish all my readers a Happy 4th of July. And I wanted to thank all of those military members for keep...
McDonald's Corporation (NYSE:MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the...