The great aspect of owning dividend-paying stocks is they are crucial to total return investing. Adding the increase in a company’s share price with the dividend payout gives you the total return. Over the years, dividend payout, and in some cases dividend reinvestment or DRIP plans, have paved the way for investors success.
A new report from the Dividend Ruler analysts at UBS highlights the many stocks in the current portfolio that have already raised dividends this year. We screened the companies that had a dividend increase for the highest yielding stocks.
Colgate-Palmolive Co. (NYSE: CL) sells its products in more than 200 countries and makes over 75% of its revenue outside the United States, which provides geographic diversification and growth opportunities in emerging markets for the company. This diversity, matched with a huge list of consumer products, keeps revenues and dividends growing. The company raised the dividend by 6% in February.
Colgate-Palmolive investors are paid a 2.2% dividend. The UBS price target for the stock is $74, and the Thomson/First Call consensus price target is $72.68. Colgate closed Thursday at $68.53 a share.
Dominion Resources Inc. (NYSE: D) reported solid earnings and raised the dividend by 8% in February. That represents the 12th consecutive annual dividend increase. The utility has filed a petition with Virginia State Corporation Commission for building the first large-scale solar facility in the state.
Dominion investors are paid a very solid 3.72% dividend. The consensus price target is $80.07. The stock closed Thursday at $69.82 a share.
NextEra Energy Inc. (NYSE: NEE) is another top utility that raised the payout to shareholders. It recently raised the dividend by 6%. The company is the old Florida Power and Light, and continues to rank as the best of all major electric companies in Florida.
NextEra shareholders are paid a tidy 3.05% dividend. The consensus price target is $116.59. Shares closed trading on Thursday at $100.52.
Nordstrom Inc. (NYSE: JWN) is one of the leading fashion specialty retailers based in the United States. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 260 stores in 35 states, including 117 full-line stores, 140 Nordstrom Racks, two Jeffrey boutiques and one clearance store. In February, the company raised its dividend, a 10% increase, for the sixth consecutive year.
Investors are paid a 1.8% dividend. The consensus price target is $77.95. Nordstrom closed Thursday above that level at $80.28.
Toronto-Dominion Bank (NYSE: TD) is based in Canada and is a stock that the UBS team is very bullish on. TD Bank is one of the 10 largest banks in the United States, providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 locations throughout the country. The bank raised the dividend 9% at the end of last month.
Toronto-Dominion shareholders are paid a very nice 3.85% dividend. The consensus price target is $58.65. Shares closed at $42.38.
Companies that consistently return earnings to shareholders via dividends and increase in those dividends are putting shareholders first. In a pricey market, these are the kind of stocks to buy and hold for the long term.