I am not a stock trader; I am a dividend and value based long-term buy-and-hold investor. When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. I am not smart enough to time the daily gyrations of the stock market. However, I have one hard and fast rule about selling stocks: When an individual stock held as a dividend investment lowers its dividend, immediately sell it.
Here are several stocks that are trying to stay in good favor with their shareholders by raising their cash dividends:
- RLI Corp. (RLI) Boosts Qtr. Dividend by 4% to $0.26/Share (1.87%)
- Lancaster Colony (LANC) Increases Qtr. Dividend by 1.7% to $0.285/Share (3.96%)
- SkyWest (SKYW) Raises Dividend Qtr. Dividend by 33% to $0.04/Share (1.24%)
- DHT Maritime (DHT) Raises Qtr. Dividend by % 20 to $0.30/Share (25.21%)
- Roper Industries (ROP) Boosts Qtr. Dividend 13.8% to $0.0825/Share (0.86%)
- Sysco (SYY) Raises Qtr. Dividend by 9% to $0.24/Share (3.91%)
- NSTAR (NST) Increases Qtr. Dividend by 7% to $0.35/Share (4.29%)
- The Laclede Group (LG) Increases Qtr. Dividend by 2.7% to $0.385/Share (3.08%)
After running these companies through my D4L-PreScreen.xls model, RLI with a NPV of MMA Differential of $3,404 and 33 consecutive year record of raising dividends certainly qualifies for a more complete evaluation. DHT has only paid a dividend since 2006. NST had positive NPV of MMA Differentials, but below the level that would warrant a more detailed evaluation. SYY was reviewed on Wednesday.
Disclosure: Long SYY.
(Photo: Steve Woods)