Many of our expenses like utilities and mortgage payments are on a monthly cycle. It is nice when we have monthly income to match up with the monthly expenses - which is why investments that
pay monthly dividends are so popular. Just because an investment pays a monthly dividend, doesn't necessarily mean it is a good fit for investors in dividend growth stocks.
Those of us that invest in dividend growth stocks are also looking for a company that grows its dividend on a regular basis. At minimum, we expect an annual increase in our dividend, usually at the expense of a lower yield. But what if we could have it all?
There is a company that bills itself as
The Monthly Dividend Company that provides shareholders with monthly dividends, quarterly dividend increases and a nice yield. Other fun facts from the
company's website include:
- 505 dividends paid
- 67 dividend increases
- 59 consecutive quarterly increases
- Dividend growth of 101.5% since 1994
- Average annual dividend return of 7.6% since 1994 (through 12/31/11)
- 4.4% current yield
Who is this company? It is...
Realty Income Corporation (
O). A company that engages in the acquisition and ownership of commercial retail real estate properties in the United States. September 18th the company increased its monthly dividend 0.2% to $0.1514375 per share. The dividend is payable on October 15, 2012 to shareholders of record as of October 1, 2012. The yield based on the new payout is 4.4%.
Below are several other companies that have recently increased their cash dividends to shareholders:
McDonald?s Corporation (
MCD) franchises and operates McDonald?s restaurants primarily in the United States, Europe, the Asia Pacific, the Middle East, and Africa. September 20th the company increased its quarterly dividend 10% percent to $0.77 per share. The dividend is payable Dec. 17 to shareholders of record Dec. 3. The yield based on the new payout is 3.3%.
IDACORP, Inc. (
IDA) Idaho Power Company, engages in the generation, transmission, distribution, sale, and purchase of electric energy in the United States. September 20th the company increased its quarterly dividend 15.2 percent to $0.38 per share. The dividend is payable November 30, 2012 to shareholders of record on November 5, 2012. The yield based on the new payout is 3.6%.
Texas Instruments Incorporated (
TXN) engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. September 20th the company increased its quarterly dividend 24% to $0.21 per share. The dividend is payable November 19, 2012, to stockholders of record October 31, 2012. The yield based on the new payout is 2.9%.
Washington Trust Bancorp, Inc. (
WASH) operates as the bank holding company for The Washington Trust Company that offers various banking and financial products and services to individuals and businesses. September 20th the company increased its quarterly dividend 4.3% to $0.04 per share. The dividend is payable on October 12, 2012 to shareholders of record on October 1, 2012. The yield based on the new payout is 3.7%.
ConAgra Foods, Inc. (
CAG) operates as a food company primarily in North America. The company operates through two segments, Consumer Foods and Commercial Foods. September 20th the company increased its quarterly dividend 4.1% to $0.25 per share. The dividend is payable Dec. 4, 2012, to stockholders of record at the close of business on Oct. 31, 2012. The yield based on the new payout is 3.6%.
Newcastle Investment Corp. (
NCT) operates as a real estate investment and finance company that invests in and manages a portfolio consisting primarily of real estate securities. September 19th the company increased its quarterly dividend 10% to $0.22 per share. The dividend is payable on October 31, 2012 to shareholders of record on October 1, 2012. The yield based on the new payout is 11.1%.
Microsoft Corporation (
MSFT) develops, licenses, and supports software products and services; and designs and sells hardware worldwide. September 18th the company increased its quarterly dividend 15% to $0.23 per share. The dividend is payable December 13, 2012 to shareholders of record on November 15, 2012. The ex-dividend date will be November 13, 2012. The yield based on the new payout is 3.0%.
Fifth Third Bancorp (
FITB) operates as a diversified financial services holding company in the United States. September 18th the company increased its quarterly dividend 25% to $0.10 per share. The dividend is payable October 18, 2012 to shareholders of record as of Friday, September 28, 2012. The yield based on the new payout is 2.6%.
W. P. Carey & Co. LLC (
WPC) provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. September 14th the company increased its quarterly dividend 15% to $0.65 per share. The dividend is payable October 16, 2012 to shareholders of record of W. P. Carey Inc. as of October 2, 2012. The yield based on the new payout is 5.3%.
Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases,
see this list.
Full Disclosure: Long O, MCD, MSFT. in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.