Regular dividend increases are important for a dividend growth portfolio. The main goal of DivGro is to generate a reliable and growing dividend income stream. Reliable income comes from stable companies that not only pay dividends regularly, but can be counted on to pay the same (or increasing) dividends over time. Of course, I prefer companies that increase their dividends over time. To do so, these companies must grow their earnings sufficiently to continue to afford their growing dividend payments.
The following table provides a summary of recent dividend increases for stocks in my watch list, sorted by the last column, %Increase. Dividend amounts are annualized.
Dividend Increases: Sep 16 - Oct 15, 2013
Company |
Ticker |
Price (Oct 15) |
Previous Dividend |
New Dividend |
Current Yield |
%Increase |
| Diageo Plc | DEO | 123.05 | 2.21 | 3.79 | 3.08% | +71.43 |
| Microsoft Corporation | MSFT | 34.49 | 0.92 | 1.12 | 3.25% | +21.74 |
| Lockheed Martin Corporation | LMT | 125.90 | 4.60 | 5.32 | 4.23% | +15.65 |
| Accenture Plc | ACN | 71.60 | 1.62 | 1.86 | 2.60% | +14.81 |
| United Technologies Corporation | UTX | 105.80 | 2.14 | 2.36 | 2.23% | +10.09 |
| Texas Instruments Incorporated | TXN | 40.25 | 1.12 | 1.20 | 2.98% | +7.14 |
| RPM International Inc. | RPM | 36.87 | 0.90 | 0.96 | 2.60% | +6.67 |
| McDonald's Corporation | MCD | 93.80 | 3.08 | 3.24 | 3.45% | +5.19 |
| Toronto-Dominion Bank | TD | 88.92 | 3.24 | 3.40 | 3.82% | +4.94 |
| W.P. Carey Inc. | WPC | 65.49 | 3.36 | 3.44 | 5.25% | +2.38 |
| Omega Healthcare Investors Inc | OHI | 31.72 | 1.88 | 1.92 | 6.05% | +2.13 |
| Northwest Natural Gas Co | NWN | 41.43 | 1.82 | 2.36 | 3.54% | +3.51 |
| Healthcare Services Group, Inc. | HCSG | 26.11 | 0.68 | 0.68 | 2.60% | +0.74 |
Highlighted are stocks I own in DivGro.
DEO is a semi-annual dividend payer with a pattern of paying one smaller and one larger dividend every year. Compared with last year's second payment, the increase is a more modest 4.98%.
MSFT's dividend increase of nearly 22% raises current yield to 3.25%. The next quarterly dividend of 28c per share will be payed on December 12, to shareholders of record on November 19. This increase adds $16 to DivGro's projected annual dividend income, and raises yield on cost to 3.53%.
Full Disclosure: Long CHL, MSFT
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