5 Companies Willing and Capable To Raise Dividends

The main focus of dividend investing is finding and buying stocks that will continue to raise their dividends in the future. In making this determination there are many factors to consider such as dividend payout ratio, debt levels, the company’s dividend policy and track record.

This week the dividend increase parade continues with several companies sharing higher cash dividends with their shareholders:

Cracker Barrel (CBRL) operates nearly 600 Cracker Barrel Old Country Store restaurants and gift shops in 41 states. September 24th the company increased its quarterly dividend 10% to $0.22/share. The dividend is payable on Nov. 5 to shareholders of record on Oct. 15. The ex-dividend date is Oct. 13. With the stock closing at $50.54 today, the dividend yield moves from 1.58% to 1.74%. The yield based on the new payout is 1.74%.

Atlantic Tele-Network (ATNI) provides wireless and wireline telecommunications services in the Caribbean and North America. September 27th the company raised its quarterly dividend 10% to $0.22/share. The dividend is payable on October 12, 2010, on all common shares outstanding to stockholders of record as of October 6, 2010. The ex-dividend date is October 4, 2010. ATNI is a Dividend Achiever and has raised its dividend for 13 consecutive years. The yield based on the new payout is 1.78%.

CSX (CSX) operates a major U.S. rail network, transporting bulk commodities, industrial products and intermodal containers over its network of approximately 21,000 route miles. September 29th the company raised its quarterly dividend 8% to $0.26/share. The dividend is payable on December 15 to shareholders of record on November 30. The ex-dividend date is Nov. 26. The yield based on the new payout is 1.88%.

Accenture (ACN) is a global management consulting, technology services, and outsourcing company. September 30th the company increased its semi-annual dividend to $0.45/share. The yield based on the new payout is 2.12%.

CLARCOR (CLC) is a diversified marketer and manufacturer of mobile and industrial filtration products and consumer and industrial packaging products. September 30th the company raised its quarterly dividend 7.7% to $0.105/share. The dividend is payable October 22, 2010 to shareholders of record October 8, 2010. The ex-dividend date is October 6, 2010. CLC is a Dividend Achiever and has raised its dividend for 46 consecutive years. The yield based on the new payout is 1.09%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

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