Thursday, March 20, 2014

March Dividend Increases

Air Products & Chemicals (APD) increased dividends 8.5% from $.71 to $.77 per quarter.  APD can now claim a 32 year dividend growth streak, pretty amazing to think that it dates back to all the way to 1982!  Air Products hails from the materials sector and runs what could be the most boring business ever.  As you might have guessed from its name, it sells gasses which are used in a variety of industries including semi conductors, LCD screens, inks, personal care, mining, hydrocarbon recovery, and steel to name a few.  It does a lot of international business, but seems to be focusing on South Korea and China in particular.

Bank of Nova Scotia (BNS) increased dividends 3.2% from $.62 to $.64 (Canadian) per quarter.  This increase is most welcome, but nothing to write home about in and of itself.  However I would note it last increased dividends only 6 months ago.  I chose Scotia Bank for my portfolio because BNS has a large international presence and I simply trust Canadian Banks more than U.S. banks.  Canada has stricter banking & lending laws which tends to keep financial institutions out of trouble.  Canadian banks didn't need bailouts during the great recession and none cut dividends.  How refreshing!

General Mills (GIS) increased dividends 7.9% from $.38 to $.41 per quarter.  Another stout dividend increase from General Mills, I cannot complain.  In case you didn't know, GIS sells packaged foods such as Cheerios, Pillsbury, Green Giant, Haagen-Daz, and Progresso soups.  Lots of brand recognition and lots of brand loyalty here.  I personally eat Cheerios every morning and easily go through 2-3 boxes per week.  I can take solace knowing I am supporting my own dividend stream.

Raytheon (RTN) increased dividends 10.0% from $.55 to $.605 per quarter.  My RTN yield on cost is rising rapidly!  When I first purchased the company it came with a 3.9% yield.  Three increases later, that same purchase has a 5.5% YOC.  Unfortunately defense contractors are no longer undervalued as prices from that industry rose considerably.  I would consider adding related businesses to my holdings such as GD, LMT, and NOC at a future date. 

Realty Income (O) increased dividends 0.2% from $.1821667 to $.1824792 per month.  Yet another quarterly increase from "The Monthly Dividend Company."  Honestly .2% really doesn't matter all that much, but I will take any increase I can get.  More money in my pocket is always good; I can use it to purchase new investments now or spend it when it's time to pursue adventures other than full time work.  Each increase, even a .2% raise, is a baby step towards retirement.

W.P. Carey (WPC) increased dividends 2.9% from $.87 to $.895 per quarter.  WPC is a REIT and like O it tends to increase dividend payouts each quarter.  In fact this increase marks 52 consecutive quarters of rising dividends.  That's each and every quarter for 13 years people!  I like the fact W.P. Carey's increases are meaningful and that it has a much broader scope than O.  WPC owns real estate not just in the United States, but also Europe and Asia.  In addition it manages the CPA line of non-publicly traded REITs for high net worth investors.

March has been stellar with 6 increases so far.  Unilever tends to announce dividend boosts this month as well.  The fun might not be over just yet...


  1. Nice list of raises there. I also consume quite a few products from General Mills and own it in my Roth IRA bought it really low after the split and drop. Thanks for helping me out! The raise came a quarter early too it looks like. Realty Income is one I few is a must own in my protfolio slow and steady. I think ARCP or possibly the newly formed ARCM may be following O's path in the future as well.

    1. Haha I am a Cheerios eating machine. I come home for breakfast after an intense workout session, you can bet I'm hungry as a hostage! 3 huge bowls of Cheerios and a Yoplait yogurt is pretty standard. If only the whole country was as fond of General Mills products as I am!

      I haven't looked at ARCP in a while, but it seems to be doing great so far. Excellent work there. Unfortunately at this point I am fully allocated to REITs and the Financial sector :(

  2. I own 4 of the 6 so it's been a pretty good month for me so far.

  3. I am glad that I have 2 out of 6 stocks that you mentioned here. March is the great month for Dividend growth investors. I will add APD once I have some cash available. Great stuffs CI.