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9 Dividend Stocks Providing An Inflation Hedge With Increased Dividends

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August 26, 2013 – Comments (1) | RELATED TICKERS: EAT , WSBC , HCC

Investing in dividend growth stocks is not about buying a current high yield, but instead building a high yield-on-cost over time. One of the criticisms I am hearing more often is, "That low yield isn't even covering inflation." This is a very valid concern, if true. The way low many low yielding stocks yields compensate for inflation is by growing their dividend well in excess of the inflation rate.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:

Brinker International, Inc. (EAT) owns, develops, operates, and franchises various restaurant brands primarily in the United States. August 22nd the company increased its quarterly dividend 20% to $0.24 per share. The dividend is payable Sept. 26, 2013 to shareholders of record as of Sept. 6, 2013. The yield based on the new payout is 2.3%.

WesBanco, Inc. (WSBC) operates as a holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust services, and mortgage banking and insurance services. August 22nd the company increased its quarterly dividend 5.3% to $0.20 per share. The dividend is payable October 1, 2013 to shareholders of record on September 13, 2013. The yield based on the new payout is 2.6%.

HCC Insurance Holdings, Inc. (HCC) underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property and Casualty, Professional Liability, Accident and Health, U.S. August 21st the company increased its quarterly dividend 36% to $0.225 per share. The dividend is payable October 1, 2013 and will be paid on or about October 15, 2013. The yield based on the new payout is 2.1%.

Financial Institutions, Inc. (FISI) operates as the holding company for Five Star Bank that provides various banking and financial services to individuals, municipalities, and businesses. August 21st the company increased its quarterly dividend 6% to $0.19 per share. The dividend is payable payable October 2, 2013 to shareholders of record as of September 12, 2013. The yield based on the new payout is 3.9%.

Community Bank System, Inc. (CBU) operates as the bank holding company for Community Bank, N.A. that provides banking and financial services to retail, commercial, and municipal customers. August 21st the company increased its quarterly dividend 3.7% to $0.28 per share. The dividend is payable October 10, 2013 to shareholders of record as of September 16, 2013. The yield based on the new payout is 3.3%.

Vanguard Natural Resources, LLC (VNR) engages in the acquisition and development of oil and natural gas properties in the United States. August 20th the company increased its monthly distribution 1.2% to $0.2075 per unit. The distribution is payable September 13, 2013 to unitholders of record on September 3, 2013. The yield based on the new payout is 9.2%.

Bob Evans Farms, Inc. (BOBE) owns and operates full-service restaurants under the Bob Evans brand name in the United States. August 19th the company increased its quarterly dividend 12.7% to $0.31 per share. The yield based on the new payout is 2.6%.

MGE Energy, Inc. (MGEE) operates as a public utility holding company in Wisconsin. August 16th the company increased its quarterly dividend 3.2% to $0.4076 per share on the company's common stock. The dividend is payable Sept. 15, 2013 to shareholders of record Sept. 1, 2013. The yield based on the new payout is 3.0%.

Northrim BanCorp, Inc. (NRIM) operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses, professionals, and individuals primarily in Alaska. August 16th the company increased its quarterly dividend 13% to $0.17 per share. The dividend is payable September 13 to shareholders of record as of the close of business on September 5, 2013. The yield based on the new payout is 2.8%.

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: No position in the aforementioned securities. See a list of all my dividend growth holdings here.

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1 Comments – Post Your Own

#1) On August 27, 2013 at 8:30 AM, HarryKyin (< 20) wrote:

This is really a matter of concern because inflation directly affects on the living standards of the people. Insurance companies will also be forced to increase their dividend because of the rise in inflation.

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