Six Dividend Stocks Providing Increasing Returns for Shareholders

The only way to generate a return on a stock that does not pay dividends is to sell it. Once you sell that stock, you have a taxable event where you have to pay taxes on your whole gain all at once. Contrast this to dividend paying stocks, where a consistent dividend payment spreads out your returns and the taxable liabilities associated with it over time.

Several consistent dividend growth stocks announced increased distributions to shareholders, like clockwork. These increased distributions would surely increase the return on investment, particularly at a time when stock prices have been in a decline for six consecutive weeks.

Target Corporation (TGT) operates general merchandise stores in the United States. The company’s Board of Directors approved a 20% increase in its quarterly distribution to 30 cents/share. This marked the 44th consecutive annual dividend increase for this dividend aristocrat. Yield: 2.60% (analysis)

National Fuel Gas Company (NFG) , through its subsidiaries, operates as a diversified energy company primarily in the United States. The company operates through four segments: Utility, Pipeline and Storage, Exploration and Production, and Energy Marketing. The company’s Board of Directors approved a 2.90% increase in its quarterly distribution to 35.50 cents/share. This marked the 41st consecutive annual dividend increase for this dividend champion. Yield: 2.10%

C. R. Bard, Inc. (CR) , together with its subsidiaries, engages in the design, manufacture, packaging, distribution, and sale of medical, surgical, diagnostic, and patient care devices worldwide. The company’s Board of Directors approved a 5.60% increase in its quarterly distribution to 19 cents/share. This marked the 40th consecutive annual dividend increase for this dividend aristocrat. Yield: 0.70%

Caterpillar Inc. (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The company’s Board of Directors approved a 4.50% increase in its quarterly distribution to 46 cents/share. This marked the 18th consecutive annual dividend increase for this dividend achiever. Yield: 1.90%

Birner Dental Management Services, Inc. (BDMS) provides business services to dental group practices in Colorado, New Mexico, and Arizona. The company’s Board of Directors approved a 10% increase in its quarterly distribution to 22 cents/share. This marked the eight consecutive annual dividends increase for the company. Yield: 4.62%

FedEx Corporation (FDX) provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The company’s Board of Directors approved a 8.30% increase in its quarterly distribution to 13 cents/share. This marked the 10th consecutive annual dividend increase for this dividend stock. Yield: 0.60%

Target Stores’ (TGT) recent dividend increase makes the company attractively valued per my entry criteria. Last time I evaluated the company was in 2008, before the financial crisis. I would analyze this retailer in detail in future weeks.

Full Disclosure: None

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