Dividend growth investing is a long-term strategy. A growing dividend is a sign that the company is becoming more valuable. Companies that consistently increase dividends tend to have steadily rising share prices and the best way to benefit from this is to buy and hold the stocks. Diversification and a focus on blue-chip stocks provides insurance for the few companies that don't pan out.
Below are several companies that are increasing shareholder wealth by raising their cash dividends:
Peoples Bancorp Inc. (PEBO) operates as a holding company for Peoples Bank, National Association that provides financial products and services. January 26th the company increased its quarterly dividend 10% to $0.11 per share. The dividend is payable February 21, 2012, to shareholders of record on February 6, 2012. The yield based on the new payout is 2.9%.
Washington Banking Company (WBCO) operates as the bank holding company for Whidbey Island Bank that provides community commercial banking services in northwestern Washington. January 26th the company increased its quarterly dividend 20% to $0.06 per share. The dividend is payable on February 22, 2012 to shareholder of record on February 6th. The yield based on the new payout is 2.0%.
Arthur J. Gallagher & Co. (AJG) and its subsidiaries provide insurance brokerage and risk management services to various commercial, industrial, institutional, and governmental organizations. January 26th the company increased its quarterly dividend 3% to $0.34 per share. The dividend is payable on April 13, 2012 to stockholders of record as of March 30, 2012. The yield based on the new payout is 4.1%.
HCP, Inc. (HCP) is a real estate investment trust that invests in properties serving the healthcare industry. January 26th the company increased its quarterly dividend 4.2% to $0.50 per share. The dividend is payable February 22, 2012 to stockholders of record as of the close of business on February 6, 2012. The yield based on the new payout is 4.8%.
Seagate Technology Public Limited Company (STX) designs, manufactures, markets, and sells hard disk drives for enterprise, client compute, and client non-compute market applications worldwide. January 26th the company increased its quarterly dividend 39% to $0.25 per share, an increase of 39%. The dividend is payable on March 1 to shareholders of record on February 15. The yield based on the new payout is 5.1%.
Parker Hannifin Corporation (PH) manufactures fluid power systems, electromechanical controls, and related components worldwide. January 26th the company increased its quarterly dividend 5% to $0.39 per share. The dividend is dividend payable March 2, 2012 to shareholders of record as of February 10, 2012. The yield based on the new payout is 1.9%.
Old National Bancorp (ONB) operates as a holding company for Old National Bank, which provides financial services to individuals and commercial customers primarily in Indiana, eastern and southeastern Illinois, and central and western Kentucky. January 26th the company increased its quarterly dividend 28.6% to $0.09 per share. The dividend is payable March 15, 2012, to shareholders of record on March 1, 2012. The ex-date of the cash dividend is February 28, 2012. The yield based on the new payout is 3.0%.
ALLETE, Inc. (ALE) primarily engages in the generation, transmission, and distribution of coal-fired, hydro, wind, and biomass co-fired power in the United States. January 26th the company increased its quarterly dividend 3.4% to $0.46 per share. The dividend is payable March 1 to common shareholders of record at the close of business February 15, 2012.