Dividend Stocks: 25 New Dividend Increases for Yield Seekers By Diane Alter
By: Money Morning
May 19, 2014 at 11:23 AM EDT
Companies that pay dividends consistently provide better returns than non-payers. The current trailing 12-month average yield of the Standard & Poor's 500 Index is roughly 2%. Without dividends, the S&P 500 would have turned $10,000 into $42,000 in 20 years. But with dividends, at a modest 2.1% rate, that $10,000 would grow to $61,700 over the same time period. The post Dividend Stocks: 25 New Dividend Increases for Yield Seekers appeared first on Money Morning - Only the News You Can Profit From .
Dividend stocks update, May 19, 2014: Companies that pay dividends consistently provide better returns than non-payers.
For example, the current trailing 12-month average yield of the Standard & Poor's 500 Index is roughly 2%, according to The Wall Street Journal. That may not sound like much, but consider this: Without dividends, the S&P 500 would have turned $10,000 into $42,000 in 20 years. With dividends, at a modest 2.1% rate, that $10,000 would grow to $61,700 over the same time period.
One of the best attributes of dividend stocks is that companies can, and frequently do, increase payouts - unlike corporate bonds, Treasurys, or CDs.
Last week, 52 companies hiked their payouts. Following are 25 notable dividend stocks from that list.Dividend-Paying Stocks That Just Hiked Payouts
American Express Co. (NYSE: AXP) upped its quarterly dividend $0.03 to $0.26 a share for a 1.19% yield.
Anadarko Petroleum Corp. (NYSE: APC) raised its quarterly payout 50% to $0.29 a share for a 1.09% yield. It's the oil giant's second dividend enrichment in nine months.
Baker Hughes Inc. (NYSE: BHI) boosted its quarterly payout $0.02 to $0.17 a share for a 1% yield.
Clorox Co. (NYSE: CLX) increased its quarterly dividend $0.03 to $0.74 a share for a 3.34% yield. The 101-year-old company has been enhancing dividends every year since 1977, and it's been paying them without interruption since spun off from Proctor & Gamble Co. (NYSE: PG) in 1969.
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Hewlett Packard Co. (NYSE: HPQ) boosted its quarterly dividend 10.2% to $0.16 a share for a near 2% yield.
Holly Frontier Corp. (NYSE: HFC) fattened its quarterly dividend $0.02 to $0.32 a share for a 2.58% yield. The boost marks the sixth dividend increase from the company since it was created in 2011 amid the merger of Holly Corp. and Frontier Oil Co. Since the merger, the company has returned more than $2.2 billion to shareholders via dividends and share buybacks.
Host Hotels & Resorts Inc. (NYSE: HST) hiked its quarterly payout a penny to $0.15 a share for a 2.76% yield.
Insperity Inc. (NYSE: NSP) increased its quarterly dividend $0.02 to $0.19 a share for a 2.46% yield.
Jack in the Box Inc. (Nasdaq: JACK) announced Wednesday it will offer out its first dividend ever. The San Diego hamburger chain will begin paying a quarterly dividend of $0.20 a share for a 1.44% yield.
KeyCorp. (NYSE: KEY) raised its quarterly payout 18.2% to $0.065 a share for yield just shy of 2%.
Knightsbridge Tankers Ltd. (Nasdaq: VLCCF) upped its quarterly dividend 14.3% to $0.20 a share for a near 6% yield.
Lennox Intl. Inc. (NYSE: LII) boosted its quarterly dividend $0.06 to $0.30 a share for a 1.43% yield.
Macy's Inc. (NYSE: M) moved its dividend up 25% to $0.31 a share for a 2.2% yield. The boost marks the department store chain's fourth increase since May 2011. Prior to then, Macy's quarterly payout was a nickel a share for nine quarters, after the company slashed disbursements in early 2009. Dividends have been ongoing since 2003.
Marriott Intl Inc. (NYSE: MAR) increased its quarterly dividend $0.03 to $0.20 a share for a 1.37% yield.
Marsh & McLennan Co. Inc. (NYSE: MMC) raised its quarterly dividend $0.03 to $0.28 a share for a 2.3% yield.
National Grid Plc (NYSE ADR: NGG) increased its semi-annual payout 97.6% to $2.3107 a share for a 4.32% yield.
National Oilwell Varco Inc. (NYSE: NOV) hiked its quarterly payout 76.9% to $0.46 a share for a yield of 2.25%.
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Newell Rubbermaid Inc. (NYSE: NWL) raised its quarterly dividend $0.02 to $0.17 a share for a 2.32% yield.
NiSource Inc. (NYSE: NI) increased its quarterly payout a penny to $0.26 a share for a 2.85% yield.
Protective Life Corp. (NYSE: PL) boosted its dividend 20% to $0.24 a share for a 1.9% yield.
Safeway Inc. (NYSE: SWY) sweetened its quarterly payout 28.5% to $0.23 a share for a 2.7% yield. The California food and drug retailer initiated dividends in 2005 and has been growing them every year since. In March, SWY agreed to be taken private by an investor group led by Cerberus Capital Management, which owns the Albertson's grocery chain. If and when the deal goes through, investors will pocket $36.15 a share (last quote was $34.45).
SeaWorld Entertainment Inc. (NYSE: SEAS) raised its quarterly dividend 5% to $0.20 a share for a 2.8% yield.
State Street Corp. (NYSE: STT) hiked its quarterly payout $0.04 to $0.30 a share for a 1.9% yield.
Tortoise Energy Infrastructure Corp. (NYSE: TYG) upped its quarterly payout 0.4% to $0.58 a share for a 4.66% yield.
Western Digital Corp. (Nasdaq: WDC) lifted its quarterly dividend a dime to $0.40 a share for a 1.86% yield. Amid the dividend increase, Barclay's boosted its rating on WDC to "Overweight" from "Equal Weight" and hiked its price target to $98 from $95 (a 13% upside from the stock's current price). The bank noted the stock could outperform the market based on increased returns of cash to shareholders and the full integration of the Hitachi storage products group, which is currently operating separately.
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American Express Anadarko Petroleum Baker Hughes Inc Clorox Co Hewlett-Packard Hollyfrontier Corp Host Hotels & Resorts Insperity Inc Jack IN The Box Inc KeyCorp Lennox International Macy's Marriott International Marsh & McLennan Natl Oilwell Varco Newell Rubbermaid NiSource Procter & Gamble Seaworld Entertainment Inc Company State Street Corp Tortoise Energy Infrastructure Corporation Western Digital