Many investors have been running away scared from dividend growth investing, after reading the recent harsh statistics from Standard & Poors, which claimed that 1Q 2009 was the worst quarter since 1955.
Most investors who got scared from these statistics seem to forget that dividend investing and investing in general is a long term process, not a matter of timing the intraday ticks on the S&P 500. In order to be successful at investing, one has to stick with their strategy and purchase only those dividend stocks, that would create a diversified basket of companies. When combined together, this portfolio should withhold the bear market forces, and throw off a decent amount of dividend income over time.
Despite all the negative publicity that dividends are getting, one could still find companies that actually raise their dividends.
Tanger Factory Outlet Centers (SKT), a real-estate investment trust which engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers, raised its quarterly dividend from $0.38 to $0.3825 per share. Tanger Factory Outlet Centers is a dividend achiever which has rewarded its shareholders with an uninterrupted streak of increased dividends for 16 years. The stock currently yields 4.40%.
Plains All American Pipeline (PAA), a master limited partnership which engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquefied petroleum gas and other natural gas-related petroleum products, raised its quarterly distributions by 4.6% to $0.905 per unit. Plains All American Pipeline has rewarded its shareholders with an uninterrupted streak of increased dividends for 9 years. The units currently yield 9.20%.
Genesis Energy (GEL), a master limited partnership which operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States, raised its quarterly distributions by 2.3% to $0.3375 per unit. Genesis Energy has rewarded its shareholders with an uninterrupted streak of increased dividends since 2004. Genesis Energy has cut its distributions in 2000 and 2003. The units currently yield 11.50%. I would not initiate a position in Genesis Energy at these levels.
TJX Companies (TJX), which operates as an off-price retailer of apparel and home fashions, raised its quarterly dividend from $0.11 to $0.12 per share. TJX Companies is a dividend achiever which has rewarded its shareholders with an uninterrupted streak of increased dividends for 13 years. The stock currently yields 1.70%.
It’s interesting to note despite the credit market crunch, there are still some real estate investment trusts which keep rewarding shareholders with dividend raises. The master limited partnerships have also accounted for stable and consistent increases in distributions as of late.
Relevant Articles:
- Master Limited Partnerships (MLPs)
- Why do I like Dividend Achievers
- Dow 370,000
- My Dividend Growth Plan - Strategy
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As a committed pipeline MLP investor, I recommend that anyone interested in these investments understand the potentially "nightmarish" tax reporting characteritics - which can include filing tax returns in Canada.
ReplyDeleteInvestment grade bonds are yielding more than dividend yields from such issuers' common equity. Why get paid less to have lower priority in the capital structure?
ReplyDeleteAlso, anyone looking at the high dividend yielding REITs needs to do their homework and tread lightly. Many REITs are now paying investors as much as 90% of their dividend by issuing them equity rather than paying them cash