12 Confident and Secure Companies Boosting Dividends

If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. The industry the company operates in, legal considerations (REITs and MLPs), maturity and growth potential all have an effect on an individual stock’s yield, along with the company’s ability to grow its dividend.

Below are several companies confident and secure enough in their business to increase their cash dividends:

Air Products (APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. March 17th the company increased its quarterly dividend 18% to $0.58/share. The dividend is payable on May 9, 2011 to shareholders of record at the close of business on April 1, 2011. This marks the 29th consecutive year that Air Products has increased its dividend payment. The yield based on the new payout is 2.7%.

Independent Bank Corp. (INDB) is a full-service community bank serving southeastern Massachusetts, Cape Cod, and Rhode Island. March 17th the company increased its quarterly dividend 6% to $0.19/share dividend which is payable on April 8, 2011, to stockholders of record as of the close of business on March 28, 2011. The yield based on the new payout is 3.0%.

Washington Trust Bancorp, Inc., (WASH) offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services. March 17th the company increased its quarterly dividend 4.8% to $0.22/share. The dividend will be paid on April 14, 2011 to shareholders of record on March 31, 2011. The yield based on the new payout is 4.0%.

Patterson Companies, Inc. (PDCO) is a value-added distributor serving the dental, companion-pet veterinarian and rehabilitation supply markets. March 16th the company increased its quarterly dividend 20% to $0.12/share. The dividend is payable on April 28, 2011 to shareholders of record at the close of business on April 11, 2011. The yield based on the new payout is 1.5%.

Ashland Inc. (ASH) operates as a specialty chemicals company in the United States and internationally. March 16th the company announced its intentions to increase its dividend 16.6% to $0.70/share from its current annual rate of $0.60/share, commencing with the June 15 dividend payment. The yield based on the new payout is 1.2%.

Realty Income Corporation (O) is a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. March 15th the company increased its monthly dividend to $0.1445625/share. The dividend is payable on April 15, 2011 to shareholders of record as of April 1, 2011. This is the 54th consecutive quarterly increase and the 61st dividend increase since Realty Income went public in 1994. The Company continues its long-term policy of declaring and paying dividends on a monthly, rather than on a quarterly, basis. The yield based on the new payout is 5.0%.

Williams-Sonoma, Inc. (WSM) is a nationwide specialty retailer of high quality products for the home. March 15th the company increased its quarterly dividend 13% to to $0.17/share. The dividend is payable on May 24, 2011 to shareholders of record as of the close of business on April 27, 2011. The yield based on the new payout is 1.7%.

BioMed Realty Trust, Inc. (BMR) is a real estate investment trust (REIT) focused on Providing Real Estate to the Life Science Industry®. March 14th the company increased its quarterly dividend 17.6% to $0.20/share. The dividend is equivalent to an annualized dividend of $0.80 per common share. The yield based on the new payout is 4.6%.

Xilinx, Inc. (XLNX) is the world’s leading provider of programmable platforms. March 14th the company increased its quarterly dividend 18.8% to $0.19/share. The dividend is payable on June 8, 2011 to all stockholders of record at the close of business on May 18, 2011. “The increase in our quarterly dividend reflects our strong and consistent operating cash flow as well as our commitment to returning shareholder value,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. The yield based on the new payout is 2.4%.

Lennox International Inc. (LII) is a global leader in the heating, ventilation, air conditioning, and refrigeration markets. March 11th the company increased its quarterly dividend 20% to $0.18/share. The dividend is payable on April 15, 2011 to stockholders of record as of March 25, 2011. The yield based on the new payout is 1.4%.

Steel Dynamics, Inc. (STLD) manufactures and sells steel products in the United States. March 10th the company increased its quarterly dividend 33% to $0.10/share.The dividend is payable on or about April 14, 2011, to shareholders of record at the close of business on March 31, 2011. The yield based on the new payout is 2.1%.

Hudson Pacific Properties, Inc. (HPP) is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties primarily in Northern and Southern California. March 10th the company increased its quarterly dividend 31.6% to $0.125/share. The dividend is payable on March 31, 2011 to stockholders of record on March 21, 2011. The yield based on the new payout is 3.5%.

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: Long O. See a list of all my income holdings here.

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