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 services to individuals and small businesses in Massachusetts. The company raised quarterly distributions by 4% to 26 cents/share. The bank typically pays a special dividend equivalent to the amount of regular quarterly distribution plus one penny. As a result, it essentially pays 5 quarterly dividends in a year. This marked the 18th consecutive annual dividend increase for this dividend achiever. Yield: 2.10% (analysis)
General Mills, Inc. (GIS) manufactures and markets branded consumer foods worldwide. It also supplies branded and unbranded food products to the foodservice and commercial baking industries. The company raised quarterly distributions by 8.20% to 33 cents/share. This marked the ninth consecutive annual dividend increase for General Mills. Yield: 3.50%
Duke Energy Corporation (DUK), together with its subsidiaries, operates as an energy company in the United States and Latin America. The company raised quarterly distributions by 2% to 25.50 cents/share. This marked the eighth consecutive annual dividend increase for Duke Energy Corporation. Yield: 4.40%
Darden Restaurants, Inc. (DRI) operates full service restaurants in the United States and Canada. It operates restaurants under the Red Lobster, Olive Garden, LongHorn Steakhouse. The company raised quarterly distributions by 16.30% to 50 cents/share. This marked the eighth consecutive annual dividend increase for Darden Restaurants. Yield: 4%
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. The company raised quarterly distributions to 56.70 cents/share. W. P. Carey & Co has raised dividends for 15 years in a row. Yield: 4.90%
Full Disclosure: Long HIFS
- Hingham Institution for Savings (HIFS) Dividend Stock Analysis
- Three Dividend Strategies to pick from
- National Bankshares (NKSH) Dividend Stock Analysis
- Replacing appreciated investments with higher yielding securities
Warren Buffett is the most successful investor of all time. Warren Buffett was able to keep learning about investments and business from t...
When selecting a dividend stock, investors should look at the dividend last. Income investors should first focus on profitability when inve...
One of my favorite aspects of dividend growth investing is the ability to receive more passive dividend income, simply because I made the ri...
There are many risks to investing . One of the major risks that could ruin a portfolio’s chances of generating adequate dividends are p...
In my investing, look for businesses I can understand that have some sort of a competitive advantage that translates into consistent earn...
Rebalancing is the process where investors sell an asset that takes an above average allocation in their portfolio, and use the proceeds to ...
In order to become successful in any pursuit in life, one needs to define what success means to them. In my situation, I would consider mys...
Wal-Mart Stores Inc. (NYSE:WMT) operates retail stores in various formats worldwide. The company operates through three segments: Walmart U....
For the first three to four years of my transformation into dividend growth investing, I managed to develop a process of identifying attrac...
There are several factors that drive future investment returns. The important drivers behind future returns on equity investments includ...