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Dividend stocks update: Some 209 companies in the Standard & Poor's 500 Index have raised their dividends so far this year, according to S&P Dow Jones Indices.
The average increase has been 15%, with an exclusive bunch doubling disbursements. And, with S&P components sitting on $1.1 trillion in cash, according to FactSet, more increases are expected.
UnitedHealth Group Inc. (NYSE: UNH) dominated last week's dividend news. The Minnetonka, Minn., company boosted its quarterly dividend 34%, or nearly a dime, to $0.375 per share. That's good for a yield just shy of 1.9%, matching the average yield of S&P 500 members.
UNH's increase triples the initial payout value the nation's largest health insurer initiated in 2010. Four years ago, UNH became the first U.S. health insurer to offer more than a nominal payout to investors with its four-times-a-year disbursement of $0.125 per share.
Since then, UNH has increased dividends by roughly 30% annually, as its stock price increased. Indeed, UNH shares have risen nearly 30% over the last 12 months.
A total of 27 dividend stocks sweetened payouts last week. Following are 20 more notable increases for the week ending June 6.
Dividend-Paying Stocks That Just Hiked Payouts
Avago Technologies Ltd. (Nasdaq: AVGO) upped its quarterly payout $0.02 to $0.29 a share for a 1.51% yield. Friday, the semiconductor's shares hit an all-time high of $72.35.
CatchMark Timber Trust Inc. (NYSE: CTT) raised its quarterly distribution 13.6% to $0.125 a share for a 3.67% yield. "Continuing to grow our dividend through an acquisition strategy remains a key strategic imperative for the company," Chief Executive Officer (CEO) Jerry Barag said in a statement. "We continue to build our pipeline of potential acquisitions focused in the U.S. South, where we see the best value opportunities, and the increase in our available credit capacity should facilitate closing on additional transitions expeditiously."
Delaware Investments National Municipal Income Fund (NYSE: VFL) increased its monthly payout 8.3% to $0.065 per share for a yield of 6.02%.
Dr. Reddy's Laboratories Ltd. (NYSE ADR: RDY) hiked its annual dividend 23.7% to $0.30 per share for a yield approaching 1%. Hopes are running high for a solid rally in the Hyderabad, India, drug giant's shares. Last week, the country's central bank struck a more dovish tone and sent Indian equities to a new record high.
If you aren't a Money Morning Member, sign up now for free to see the 15 more dividend stocks that raised payouts last week. You'll also get this report with three superior dividend picks: The Best Dividend Strategy for Building Fortune in a Low-Yield Era