Dividend-Paying Stocks Kick Off 2015 with 23 New Increases

dividend-paying stocksLast year was one of the best for dividend-paying stocks and their investors...

More than 3,300 companies hiked their payouts in 2014. That's a 14.3% increase from the 2,895 dividend stocks that raised payouts in 2013.

The 2014 fiscal year saw a total of $54.8 billion in dividend increases. That's just below 2013's full-year increase of $54.9 billion.

"Overall, this is the fourth year we've seen double-digit increases in cash dividends, with companies increasing cash payments by $197 billion over the four years," Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, said in a statement.

2015 could set another record for dividend payments. One thing that investors do need to watch, though, is the effect of plunging oil prices.

"Energy accounts for over 11% of dividends in the general market," said Silverblatt. If lower oil prices cut into earnings and cash flow, dividends could eventually be hurt."

But there are no signs of a yield slowdown just yet. Dividend hikes were robust last week.

Following are the 23 dividend stocks - including one of our favorites, Ford Motor Co. (NYSE: F) - that boosted payouts during the week ending Jan. 9.

Dividend-Paying Stocks That Just Raised Payouts

Alamo Group Inc. (NYSE: ALG) raised its quarterly payout a penny to $0.08 a share for a 0.65% yield.

Bank of the Ozarks Inc. (Nasdaq: OZRK) boosted its quarterly dividend 4% to $0.13 a share for a 1.5% yield.

Blackrock MuniVest Fund Inc. (NYSEMKT: MVF) hiked its monthly payout 3.2% to $0.815 a share for a 6.34% yield.

DDR Corp. (NYSE: DDR) raised its quarterly dividend 11.3% to $0.17 a share for a 3.63% yield. News of the dividend enhancement sent shares of the power-center real estate investment trust (REIT) to a 52-week high of $19.40. DDR has been increasing its dividend annually since 2011.

The Power of Dividend Stocks

  • Stability. Research shows that dividend-paying stocks have outperformed non-dividend payers in four of the last five decades. And during periods when the Fed's monetary policy is neutral or easing, the gain for dividend-paying stocks is 12.3% vs. 6.2% in neutral environments and 10.0% vs. -2.5% in easing periods.
  • Performance. Dividend-paying stocks outperform non-dividend paying stocks by even more in down markets than they do in up markets. That's because dividend payers attract investors when the share price falls and the dividend yield rises.
  • Growth. Investors can substantially expand their asset base when they consistently reinvest dividends. In fact, 85% to 90% of total stock market returns come from dividends and the reinvestment of those dividends.

Diversified Real Asset Income Fund (NYSE: DRA) increased its monthly payout 8.3% to $0.117 a share for an 8% yield.

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Enbridge Energy Partners LP (NYSE: EEP) boosted its quarterly dividend 2.7% to $0.57 a share for a 5.81% yield.

Enterprise Products Partners LP (NYSE: EPD) raised its quarterly payout 1.4% to $0.37 a share for a 4.31% yield. The enrichments marks the midstream energy services provider's 51st distribution increase since its 1998 initial public offering (IPO) and its 42nd consecutive quarterly increase.

Ford Motor Co. (NYSE: F) fattened its quarterly dividend 20% to $0.15 a share for a yield approaching 4%, making the stock an attractive yield play. Analysts expect Ford's profit growth to comfortably support the dividend hike. According to S&P Capital IQ, analysts' mean 18-month price target on Ford is $17.50. Shares ended last week at $15.21.

Genesis Energy LP (NYSE: GEL) goosed its quarterly payout 2.6% to $0.59 a share for a 5.72% yield. The increase marks the 38th consecutive quarter in which Genesis has increased its quarterly distribution. During that stretch, 33 of those quarterly increases have been 10% or greater year over year.

Nordic American Tanker Ltd. (NYSE: NAT) increased its quarterly dividend 57% to $0.22 a share for a 7.58% yield. NAT has been paying dividends for 70 consecutive quarters.

Nuveen All Cap Energy MLP Fund (NYSE: JMLP) juiced its quarterly payout 1.8% to $0.333 a share. The fund began trading on the New York Stock Exchange on March 27, 2014. Its first distribution in April reflected an annualized distribution rate of 6.54% based on the fund's $20 per share IPO price.

Nuveen Energy MLP Total Return Fund (NYSE: JMF) hiked its quarterly dividend 1.8% to $0.33 a share for a yield just shy of 7%.

Oak Valley Bancorp (Nasdaq: OVLY) boosted its semi-annual payout 53.8% to $0.10 a share for a near 4% yield.

Plains All American Pipeline LP (NYSE: PAA) upped its quarterly payout 2.3% to $0.675 a share for a 5.26% yield. PAA has increased its quarterly distribution in 41 of the past 43 quarters and consecutively in each of the past 22 quarters.

Plains Group Holdings LP (NYSE: PAGP) raised its quarterly dividend 6.4% to $0.20 a share for a 3.12% yield.

Sabine Royalty Trust (NYSE: SBR) sweetened its monthly distribution 60.8% to $0.28 a share for a 10.53% yield.

Southern Missouri Bancorp (Nasdaq: SMBC) announced a 2-for-1 stock dividend payable Jan. 30 to shareholders of record Jan. 16.

Sovran Self Storage (NYSE: SSS) raised its quarterly payout 10.3% to $0.75 a share for a 3.3% yield. Improved customer demand and ongoing investment in technology, properties, and people boosted the REIT's cash flow.

Tallgrass Energy Partners LP (NYSE: TEP) boosted its quarterly dividend 18.3% to $0.48 a share for a 4.31% yield.

Teekay Tankers LP (NYSE: TNK) increased its quarterly payout 1.2% to $0.70 a share for a 1.91% yield.

Watsco Inc. (NYSE: WSO) raised its quarterly dividend 16.7% to $0.70 a share for a 2.6% yield.

Watsco Inc. B (NYSE: WSOB) upped its quarterly payout a dime to $0.70 a share for a 2.58% yield.

Zep Inc. (NYSE: ZEP) hiked its quarterly distribution 20% to $0.06 a share for a 1.6% yield.

Don't forget to claim your free report on dividend-paying stocks: The Best Dividend Strategy for Building a Fortune in the Low-Yield Era

Now for Today's Top Story: Low oil prices is one of the biggest stories of the past six months. The implications of much lower oil prices are huge and will impact markets, industries, and sectors across the board in the coming year. All of this leaves investors wondering what to do next and how to profit from this changing-by-the-day industry. Here's exactly how to play lower oil prices for near-term profits...