Sunday, August 17, 2014

Spotlight on Recent Dividend Increasers

Income investors obviously like dividend stocks. But both income investors and growth investors like stocks that increase their dividends. When a company increases its payout rate, it shows that the financial outlook for the business is positive. If a company has a long term track record of increasing dividends, that's an additional positive sign.

One type of stock that I've never lost money on is a water company. And speaking of water companies, Connecticut Water Service, Inc. (CTWS) just announced that the company's dividend is being boosted by 4%. This is the 45th year in a row that that the company has had a dividend increase. Connecticut Water serves over 120,000 customers in Connecticut and Maine. The stock, which yields 3.0%, trades at 19 times trailing earnings and 17 times forward earnings. The latest quarterly earnings were up an incredible 73.8% year over year on a 12.9% rise in revenues.

Nordson Corporation (NDSN), which is in the business of making and marketing adhesives, coatings, and polymers, bumped up its dividend from 18 cents a share to 22 cents a share, a 22% increase. This is the 51st year of annual consecutive dividend increases, giving the stock a yield of about 1.0%. Quarterly earnings were up 13.4% on a 9.3% increase in revenues.

Other companies that have increased dividends in the last couple weeks are MGE Energy, Inc. (MGEE) which raised its dividend by 4%, and Weyerhaeuser (WY), which boosted its dividend by 32%,. It you like interesting stock lists like this, check out the lists at, most of which are free, including the list of stocks going ex-dividend.

Disclosure: Author didn't own any of the above at the time the article was written.


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