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sagitarius84 (42.78)

Dividend Stocks Raising Payments in a rising market

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April 13, 2009 – Comments (3) | RELATED TICKERS: GEL , TJX , PAA

                                                               Original Post 

Many investors have been running away scared from dividend growth investing, after reading the recent harsh statistics from Standard & Poors, which claimed that 1Q 2009 was the worst quarter since 1955.

Most investors who got scared from these statistics seem to forget that dividend investing and investing in general is a long term process, not a matter of timing the intraday ticks on the S&P 500. In order to be successful at investing, one has to stick with their strategy and purchase only those dividend stocks, that would create a diversified basket of companies. When combined together, this portfolio should withhold the bear market forces, and throw off a decent amount of dividend income over time.
Despite all the negative publicity that dividends are getting, one could still find companies that actually raise their dividends.

Tanger Factory Outlet Centers (SKT), a real-estate investment trust which engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers, raised its quarterly dividend from $0.38 to $0.3825 per share. Tanger Factory Outlet Centers is a dividend achiever which has rewarded its shareholders with an uninterrupted streak of increased dividends for 16 years. The stock currently yields 4.40%.

Plains All American Pipeline (PAA), a master limited partnership which engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquefied petroleum gas and other natural gas-related petroleum products, raised its quarterly distributions by 4.6% to $0.905 per unit. Plains All American Pipeline has rewarded its shareholders with an uninterrupted streak of increased dividends for 9 years. The units currently yield 9.20%.

Genesis Energy (GEL), a master limited partnership which operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States, raised its quarterly distributions by 2.3% to $0.3375 per unit. Genesis Energy has rewarded its shareholders with an uninterrupted streak of increased dividends since 2004. Genesis Energy has cut its distributions in 2000 and 2003. The units currently yield 11.50%. I would not initiate a position in Genesis Energy at these levels.

TJX Companies (TJX), which operates as an off-price retailer of apparel and home fashions, raised its quarterly dividend from $0.11 to $0.12 per share. TJX Companies is a dividend achiever which has rewarded its shareholders with an uninterrupted streak of increased dividends for 13 years. The stock currently yields 1.70%.

It’s interesting to note despite the credit market crunch, there are still some real estate investment trusts which keep rewarding shareholders with dividend raises. The master limited partnerships have also accounted for stable and consistent increases in distributions as of late.

Relevant Articles:

- Master Limited Partnerships (MLPs)
- Why do I like Dividend Achievers
- Dow 370,000
- My Dividend Growth Plan - Strategy

 

3 Comments – Post Your Own

#1) On April 13, 2009 at 8:33 AM, sagitarius84 (42.78) wrote:

Check out why dividend investors should expect higher total returns over time in The Dividend Edge

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#2) On April 13, 2009 at 8:41 AM, BullMktAg (< 20) wrote:

Any suggestions for building a high yield profile?

 

 

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#3) On April 13, 2009 at 9:21 AM, Varchild2008 (84.38) wrote:

I don't like going 100% dividend....  I carry a pretty big Portfolio though.... I like a good number of dividend payers mixed in with a small number of non-dividend defensive stocks during a bear market.

I then sprinkle on top a couple super-high risky stocks that long term could generate big returns. 

This allows me to enjoy getting dividend payments, while sitting and waiting for super-high risk assets to produce.  Defensive names allow me to enjoy slow share price growth appreciation without as severe downside risk you can get from Commodities.

It would be great if every single defensive stock paid dividends and paid them well.... But there are still too many Food, beverage, etc. companys that don't.

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