Just as picking fruit from a mango tree does not harm it, living off dividends does not damage the investment’s ability to produce future results. A mango tree’s life will easily span an entire generation. Similarly, well-chosen dividend investments will not only provide income in retirement, but can be passed to your children who can continue to reap the benefits.
Below are several select companies that recently decided to reward their shareholders with fruits of their labor in the form of increased cash dividends:
- Teche (TSH) Raises Qtr. Dividend 1.45% to $0.35/Share
- WesBanco (WSBC) Increases Qtr. Dividend 1.8% to $0.28/Share
- Salisbury Bancorp (SAL) Boosts Qtr. Dividend 3.7% to $0.84/Share
- Guess? (GES) Raises Qtr. Dividend 25% to $0.10/Share
After running these companies through my D4L-PreScreen.xls model, none achieved the necessary NPV of MMA Differential to justify a full evaluation. With a NPV of MMA Differential of $3,820 and a Dividend Achiever, WSBC was the only company in positive territory.
Disclosure: No position in any of the aforementioned stocks.
(Photo: Steve Woods)