5 Recent Dividend Increases

What separates income investors from dividend investors is the concept of a growing dividend. This dividend growth is the life-blood of a thriving dividend portfolio. The income derived from a quality, well-diversified portfolio is much more predictable than capital gains and the good companies routinely raise their dividends well in excess of the inflation rate.

Recently, the following companies announced increased cash dividends:

AT&T (T) provides telephone and broadband service. December 18th the company increased its quarterly dividend 2.4% to $0.42/share. The dividend is payable February 1, 2010, to common stockholders of record on January 8, 2010. The ex-dividend date is January 6, 2010. T is a Dividend Achiever and has raised its dividend for 26 consecutive years. The yield based on the new payout is 6.02%.

Franklin Resources (BEN) is one of the world's largest asset managers, serving retail, institutional, and high-net-worth clients. December 18th the company raised its quarterly dividend $0.22/share and announced a special dividend of $3.00/share. The quarterly dividend is payable on January 8, 2010 to stockholders of record at the close of business on December 31, 2009. The special dividend is payable on December 31, 2009 to stockholders of record at the close of business on December 28, 2009. BEN is a Dividend Achiever and has raised its dividend for 29 consecutive years. The yield based on the new payout is 0.82%.

Ensign Group (ENSG) provides skilled nursing and rehabilitative care services in California, Arizona, Texas, Washington, Utah and Idaho. December 21st the company boosted its quarterly dividend to $0.05/share. The dividend, is payable on or before January 31, 2010 to shareholders of record as of December 31, 2009. The ex-dividend date is December 29, 2009. The yield based on the new payout is 1.32%.

Bristol-Myers Squibb (BMY) is a leading global drugmaker, with strengths in cardiovascular, anti-infective and anticancer therapeutics. December 21st the company increased its quarterly dividend 3% to $0.32/share. beginning in the first quarter of 2010. James M. Cornelius, chairman and chief executive officer of Bristol-Myers Squibb said in a statement:

This dividend increase reflects our ongoing commitment to deliver shareholder value. We have made excellent progress in executing our strategy and we are confident in the strength of our BioPharma business. Our performance has helped put us in a strong cash position today and we expect solid cash flows to continue in the years ahead.

The next quarterly dividend will be payable on February 1, 2010 to stockholders of record at the close of business on January 4, 2010. The yield based on the new payout is 5.00%.

The First of Long Island (FLIC) provides financial services through its wholly-owned subsidiary, The First National Bank of Long Island. December 22nd the company raised its quarterly dividend to $0.20/share, for a total of $0.76/share declared representing a 15% increase over the $0.66/share declared in 2008. The dividend will be paid on January 8, 2010 to shareholders of record on December 31, 2009. The yield based on the new payout is 3.51%.

Dividend income is great, but a rising dividend income is something special! 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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