Dividend Stocks: 25 New Increases for Yield Seekers

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Dividend stocks update: Many investors are rethinking their investment strategies amid prospects of interest rate hikes, especially in the wake of last week's Federal Open Market Committee (FOMC) meeting.

During the last five-plus years of a near-zero interest rate environment, dividend-paying stocks have been an attractive option for investors. But with rising rates on the horizon, high yield is becoming increasingly less important than dividend growth potential.

First, companies that continuously increase their payouts have historically performed better than those that do not pay dividends, according to Ned Davis Research.
dividend stocks
Moreover, companies with a long history of dividend growth display higher returns on equity (ROE). Companies in the NASDAQ US Dividend Achievers Index (IndexNasdaq: DAA) have logged a 22% annual ROE over the last decade compared with a 13% annual ROE for all companies in the S&P 500 Index, according to exchange-traded fund sponsor and asset manager Wisdom Tree.

So you see, a portfolio that includes dividend growers is one that tends to beat the market. And with market returns this year expected to be modest compared to the 32% return (including dividends) logged in 2013, investing in dividend growers is a smart move.

Following are 25 dividend stocks that increased payouts in the week ending March 21.

Dividend-Paying Stocks That Just Boosted Their Payouts

Air Products & Chemicals Inc. (NYSE: APD) raised its dividend $0.06 to $0.77 a share for a 2.52% yield.

Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend $0.02 to $0.70 a share for a yield of 3.8%.

Anworth Mortgage Asset Corp. (NYSE: ANH) hiked its dividend 75% to $0.14 a share for a 10.67% yield.

Just-released: Of the almost 5,000 dividend-paying stocks to choose from, these three companies provide superior payouts and superior long-term grown potential.

Banco Bilbao Vizcaya Argentaria SA (NYSE ADR: BBVA) boosted its dividend 73.7% to $0.23 a share for a 5.51% yield.

Blackstone Mortgage Trust Inc. (NYSE: BXMT) increased its dividend $0.03 to $0.48 a share for a 6.56% yield.

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  1. H. Craig Bradley | March 25, 2014

    REVERSION TO THE MEAN

    The percent of large companies in the S&P 500 consisting of "high dividend payers" is higher than the average for the last 40 years. This means that the high dividend paying large cap companies that dominate the S&P 500 Index today are likely to under perform for the next 2-3 years, according to studies ( O’Shaughnessy Asset Management, LLC ).

    Historically, buying the most popular and successful sectors like finance in 2007 or technology in 2000 led to relatively poor total returns in subsequent years immediately following each market cycle peak. You have to keep in mind relative value and its role in long term investment returns. Buying high or following the crowd is not a successful practice for superior investment returns.

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