Dividend Companies I am Considering this Month

The goal of every dividend investor is to generate dividend income that is larger than their annual expenses. This coveted goal is called the dividend crossover point. Regular readers know that my goal is to reach the dividend crossover point somewhere around 2018. I am on track to achieve that, because I put money to work every month, and have been doing that after starting from scratch more than 8 years ago. When you have a goal, and a plan to achieve that goal, the important thing is to keep working towards that goal. I do this by constantly searching for attractively valued companies, which also have good prospects to grow dividend income in the future.

In the article below, I have highlighted a few companies, which I am considering adding to. I had included Chubb (CB) when I originally started thinking about what purchases I am considering for July. However, insurer ACE Limited (ACE) decided to acquire Chubb last week, which derailed those plans. That being said, I will add ACE to my list for further review, and will post an analysis shortly. As I have said before, quality dividend growth stocks are more likely to be acquired by larger competitors.



3M Company (MMM) operates as a diversified technology company worldwide. 3M is a dividend king, which has raised dividends for 57 years in a row. The company has managed to raise its annual dividends by 9%/year over the past decade. During same time period, earnings per share have risen by 7.20%/year. Currently, the company is selling for 19.60 times forward earnings and yields 2.60%. Check my analysis of 3M Company for more information about the company.

United Technologies Corporation (UTX) provides technology products and services to building systems and aerospace industries worldwide. United Technologies is a dividend achiever, which has raised dividends for 22 years in a row. The company has managed to raise its annual dividends by 12.90%/year over the past decade. During same time period, earnings per share have risen by 9.50%/year. Currently, the company is selling for 15.70 times forward earnings and yields 2.30%. Check my analysis of United Technologies for more information about the company.

Ameriprise Financial, Inc. (AMP), through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. Ameriprise is a dividend achiever, and has raised dividends for 10 years in a row. The company has managed to raise its annual dividends by 27.20%/year over the past five years. During same time period, earnings per share have risen by 12.10%/year. Currently, the company is selling for 13.20 times earnings and yields 2.10%. Check my analysis of Ameriprise Financial for more information about this dividend achiever.

Eaton Corporation plc (ETN) operates as a power management company worldwide. The company has managed to grow dividends for six years in a row. Eaton is the type of company that grows dividends for several years in a row, and then keeps the distribution unchanged for a few years during a recession. For example, between 2008 and 2009, the company kept the dividend unchanged. The company has managed to raise its annual dividends by 13.80%/year over the past decade. Currently, the company is selling for 14.20 times forward earnings and yields 3.30%. Check my analysis of Eaton Corporation for more information about the company. I recently initiated a small position as way to monitor the company better.

Lockheed Martin Corporation (LMT), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. Lockheed Martin is a dividend achiever, which has raised dividends for 12 years in a row. The company has managed to raise its annual dividends by 19.70%/year over the past decade. During same time period, earnings per share have risen by 14.80%/year. Currently, the company is selling for 16.70 times forward earnings and yields 3.20%. Check my analysis of Lockheed Martin for more information about the company.

Exxon Mobil Corporation (XOM) explores for and produces crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil is a dividend champion, which has raised dividends for 33 years in a row. The company has managed to raise its annual dividends by 9.80%/year over the past decade. During same time period, earnings per share have risen by 6.90%/year. Currently, the company is selling for 19.20 times forward earnings and yields 3.50%. Check my analysis of Exxon Mobil for more information about this energy behemoth.

Several REITs on my watchlist are also starting to look attractive. I would likely be able to add to them later in the month, or early next month, since I last added to my REITs in May. I try to spread purchases out over several months, in order to avoid buying the same company all the time, and in order to increase diversity of holdings.

W. P. Carey Inc. (WPC) is an equity real estate investment trust, which invests in the real estate markets across the globe. This REIT has managed to boost distributions for 18 years in a row. The ten year dividend growth rate is 7.50%/year. Currently, it is selling for 12.30 times FFO and yields 6.40%. Check my analysis of W.P. Carey for more information on this REIT.

Omega Healthcare Investors, Inc. (OHI) is a real estate investment firm that invests in long-term healthcare healthcare facilities. This REIT has managed to boost distributions for 13 years in a row. The ten year dividend growth rate is 10.90%/year. Currently, it is selling for 12.80 times FFO and yields 6.20%. Check my analysis of Omega Healthcare Investors for more information on this REIT.

HCP, Inc. (HCP) is a hybrid real estate investment trust that invests in properties serving the healthcare industry including sectors of healthcare such as senior housing, life science, medical office, hospital and skilled nursing. This REIT has managed to boost distributions for 30 years in a row. The ten year dividend growth rate is 2.70%/year. Currently, it is selling for 12.20 times FFO and yields 6.10%. Check my analysis of HCP, Inc for more information on this REIT.

Full Disclosure: Long all companies above ( except for ACE)

Relevant Articles:

- Five Things to Look For in a Real Estate Investment Trust
- The importance of pricing and valuation in dividend investing
- Dividend Growth Stocks Are Still Great Acquisitions
- How to become a successful dividend investor
- Dividend Champions - The Best List for Dividend Investors