Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company’s increasing intrinsic value. Great companies that increase dividends tend to have rising share prices over time. Holding only first-rate businesses protects your dividend streams and helps ensure you’ll also get steady price appreciation.
Below are four companies rewarding their shareholders with higher cash dividends:
Middlesex Water (MSEX) provides regulated water utility service in parts of New Jersey and Delaware; and also operates waste water systems. October 30th the company increased its quarterly dividend to $0.18/share. The dividend is payable December 1, 2009 to shareholders of record as of November 13, 2009. The ex-dividend date is November 11, 2009. MSEX is a Dividend Champion and has increased its dividend for 36 consecutive years. The yield based on the new payout is 4.62%.
Aaron’s (AAN) rents and sells residential and office furniture, consumer electronics and household appliances, and also manufactures furniture for rental and subsequent sale. November 4th the company raised its quarterly dividend 5.9% to $0.018/share. The dividend is payable January 4, 2010 to shareholders of record as of the close of business on December 1, 2009. The ex-dividend date is November 27. The yield based on the new payout is 0.27%.
Microchip (MCHP) supplies microcontrollers and analog and other semiconductor
products for a wide variety of high-volume embedded control applications. November 4th the company increased its quarter dividend to $0.34/share. The yield based on the new payout is 5.56%.
Universal Corp. (UVV) is the world’s largest independent leaf tobacco dealer. November 5th the company raised its quarterly dividend 2.2% to $0.47/share. The dividend is payable February 9, 2010, to common shareholders of record at the close of business on January 11, 2010. The yield based on the new payout is 4.33%.
Great companies that raise their dividends each and every year often make the best income investments. For a list of stocks with a long string of consecutive dividend increases, see this list.
Full Disclosure: No position in the aforementioned stocks. See a list of all my income holdings here.