9 Dividend Stocks Building Superior Long-Term Returns
Ned Davis Research examined the relative performances of stocks between 1972 and 2006 and established a link between rising dividends and superior long-term returns. The study found S&P 500 stocks that consistently increased their dividends returned 10.4% total return (dividends + share price appreciation), while those that did not increase their dividends returned only 8.2%. The 2.2% advantage of the dividend raisers would equate to an additional $1,802 per $100 invested in 1972.
Below are several companies looking to provide their share holders with superior long-term returns by increasing their cash dividends:
RPM International Inc. (RPM) manufactures, markets, and sells various specialty chemical products to industrial and consumer markets worldwide. October 6th the company increased its quarterly dividend 2.4% to $0.215 per share. The dividend is payable on October 31, 2011, to stockholders of record as of October 17, 2011. This represents the 38th consecutive year of increased cash dividends paid to its stockholders, which places RPM in an elite category of less than half of 1 percent of all 19,000 publicly-traded U.S. companies. The yield based on the new payout is 4.2%.
Epoch Investment Partners, Inc. (EPHC) is a publicly owned investment manager. October 5th the company increased its quarterly 33% to $0.08 per share. The dividend is payable on November 11, 2011 to shareholders of record as of October 28, 2011. The yield based on the new payout is 2.1%.
Corning Incorporated (GLW) manufactures and processes specialty glass and ceramics products worldwide. October 5th the company increased its quarterly dividend 50% to $0.075 per share. The dividend is payable on Dec. 16, 2011 to holders of record Nov. 16, 2011. The yield based on the new payout is 2.4%.
Northwest Natural Gas Company (NWN) provides natural gas service to about 675,000 customers through 14,000 miles of mains and service lines in western Oregon and southwestern Washington. October 4th the company increased its quarterly dividend 2.3% to $0.445 per share. The dividend is payable Nov. 15, 2011, to shareholders of record on Oct. 31, 2011. The yield based on the new payout is 4.0%.
QR Energy, LP (QRE) owns and acquires producing oil and natural gas properties in North America. October 4th the company increased its quarterly dividend 15% to $0.4750 per share. The dividend is payable on February 10, 2012, to stockholders of record on January 30, 2012, with an ex-dividend date of January 26, 2012. The yield based on the new payout is 9.9%.
Senior Housing Properties Trust (SNH) is a real estate investment trust (REIT) that owns 320 properties in 36 states and Washington, D.C, including 226 senior living properties and two rehabilitation hospitals. October 4th the company increased its quarterly dividend 2.7% to $0.38 per common share. The dividend is payable to shareholders of record as of the close of business on October 19, 2011 and distributed on or about November 11, 2011. The yield based on the new payout is 7.4%.
Bank of the Ozarks, Inc. (OZRK) has banking operations through 90 offices, including Arkansas, Texas, Georgia, Florida, North Carolina, South Carolina and Alabama. October 3rd the company increased its quarterly dividend 5.3% to $0.10 per share. The dividend is payable October 21, 2011 to shareholders of record as of October 14, 2011. The Company has increased its quarterly dividend in seven of the last eight quarters and completed a two-for-one stock split on August 16, 2011. The yield based on the new payout is 1.9%.
SMF Energy Corporation (FUEL) is a leading provider of petroleum product distribution services, transportation logistics and emergency response services. October 1st the company increased its quarterly dividend 20% to $0.015 per share. The dividend is payable to holders of record of the Company's common stock at the close of business on November 14, 2011, to be paid on December 2, 2011. The yield based on the new payout is 2.6%.
CLARCOR Inc. (CLC) is a global provider of filtration products, filtration systems and services, and consumer and industrial packaging products. September 28th the company increased its quarterly dividend 14% to $0.12 per share. This increase represents the 29th consecutive year that the Board has raised the annual dividend. The dividend is payable Friday, October 21st, 2011 to shareholders of record Tuesday, October 11th, 2011. The yield based on the new payout is 1.2%.
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 SNH. See a list of all my dividend growth holdings here.
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