Dividend Growth Investor: Five Dividend Growth Companies Increasing Dividends Last Week
After rallying for nearly five months without a major break, the market is starting to pause. Investors who have ridden growth stocks may want to take some profits and look elsewhere. While stocks can head higher, there’s some sign of rotation.
One place investors can go is into dividend-focused stocks. That’s because these companies tend to provide steadier returns. And many are still a value play, as higher interest rates have kept their prices down.
Even better, investors who buy dividend growth companies can get a solid starting yield today. But that can be combined with increased cash payout over time.
And as the payout increases, the share price is likely to increase. That means the potential for big capital gains.
For instance, consumer goods company Colgate-Palmolive (CL) just increased its quarterly dividend payout by 4.2%. That’s the 61st consecutive year the company has raised its payout for investors.
While the starting dividend is low at 2.26%, continued dividend growth will lead to higher returns over time.
Another company increasing payouts now is UDR (UDR). They’re a multifamily real estate investment trust. They’re required to pay out 90% of income to investors. That gives them a higher yield of 4.6% right now.
Typically, because of the high payout requirement, REITs offer little, if any, dividend growth. But UDR just raised the payout by 1.2% and increased its payout for the 14th consecutive year.
To read the full list of companies increasing their dividend payouts now, click here.