In the world of dividend investing, there is always a trade-off between dividend yield and dividend growth. Companies that typically spot above average yields, tend to increase distributions very slowly. Corporations which manage to increase distributions very quickly, typically tend to pay a low current yield. I believe that there is a place for both strategies in a dividend growth investor's portfolio. The high yielders provide a steady stream of distribution income today, which will likely have a hard time keeping up with inflation. The high dividend growth stocks pay low yields today, but provide a great opportunity for high yields on cost in the future coupled with strong potential for capital gains.
The Boards of Directors of five consistent dividend paying companies approveded higher dividend payments to their loyal shareholders. The following consistent dividend payers exhibited the above mentioned characteristics very closely:
Nucor Corporation (NUE), together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The company raised its quarterly dividend by 0.70% to 36.50 cents/share. This marked the 39th consecutive annual dividend increase for this dividend champion. Yield: 3.80% (analysis)
Realty Income Corporation (O) engages in the acquisition and ownership of commercial retail real estate properties in the United States. This real estate investment trust raised its monthly dividend to 14.55 cents/share. Realty Income is a dividend achiever, which has increased dividends for 17 years in a row. Yield: 5.20% (analysis)
Franklin Resources Inc. (BEN) is a publicly owned asset management holding company. It manages, through its subsidiary, separate client-focused equity, fixed income, and balanced portfolios. The company raised its quarterly dividend by 8% to 27 cents/share. This marked the 31st consecutive annual dividend increase for this dividend champion. Yield: 1.10%
ABM Industries Incorporated (ABM) , through its subsidiaries, provides facility services for commercial, industrial, institutional, and retail facilities primarily in the United States. It operates in four segments: Janitorial, Engineering, Parking, and Security. The company raised its quarterly dividend by 3.60% to 14.50 cents/share. This marked the 45th consecutive annual dividend increase for this dividend champion. Yield: 2.80%
Urstadt Biddle Properties, Inc. (UBP),is a real estate investment trust (REIT) which engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company raised its quarterly dividend by 1% to 24.75 cents/share. This marked the 18th consecutive annual dividend increase for this dividend achiever. Yield: 5.73%
Full Disclosure: Long NUE and O
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- Dividend Growth Investing Gets No Respect
- How dividend stocks protect investors from inflation