15 Strong Stocks With Rising Dividends Despite the Recession

Newmont Loves High Gold Prices

Newmont Corp. (NYSE: NEM) is the top gold player in the world, and gold has been hot while many assets classes in 2020 have been far from it. The company announced a new quarterly dividend payment of $0.25 per common share on April 21, 2020, and that is an increase of 79% from the prior $0.14 per share quarterly dividend.

Newmont was among the first of the larger gold companies to start paying a dividend, long before its Goldcorp-merger, and it has said in the past that its dividends would be tied to gold price bands. A forecast for a much higher gold price would likely bring even higher dividends ahead.

Travelers Bucks the Trends

Travelers Companies Inc. (NYSE: TRV) announced earnings of $2.33 net per share for its first quarter on April 21. Along with other key items was the announcement that Travelers was raising its dividend payout by 4% to $0.85 per share per quarter. Its prior payout was $0.82 and its new dividend yield based on the current share price is 3.2%.

The insurance and financial services giant, which we also call the “Dow stock no one knows is a Dow stock,” mentioned 16 consecutive years of dividend increases and a reflection of confidence in its business model in its press release.

Another Energy Win via High Yields

Delek Logistics Partners L.P. (NYSE: DKL) announced on April 21, 2020, that it was raising its quarterly cash distribution to $0.89 per common unit. This was only a 0.6% hike and took the distribution to $3.56 per unit on an annualized basis. While a small hike, not many players even in master limited partnerships (MLPs) are raising payouts in the energy sector these days.

This MLP also announced that it was reiterating its expectation to raise its distribution in 2020 by 5% over 2019 levels. Not all of this is an income distribution as is customary with MLPs, but that is close to a 19% yield equivalent when comparing MLP distributions to traditional dividends.

The Southern Dividend Goes North

Southern Company (NYSE: SO) announced on April 20 that it would raise its dividend by eight cents to an annualized $2.56 per common share. The electric and gas utility player claims to serve more than 9 million customers and shows that it is committed to dividend growth. To prove it, that has made 19 consecutive annual dividend hikes. The company now offers new investors a 4.4% dividend yield, and it is still down about 21% from its highs, with a $61 billion market cap.

Costco Proves Its Case as a Pandemic Spending Winner

Costco Wholesale Corp. (NASDAQ: COST) confirmed in mid-April 15 that its pandemic-driven sales boost was strong as customers continue to buy in bulk for their homes. Costco’s board approved a quarterly increase to $0.70 per share from $0.65 previously, with an annualized payout of $2.80 per share. Due to Costco trading at a premium against peers on earnings with higher price-to-earnings (P/E) valuations, and due to how much the stock has risen, this is currently only a 0.9% dividend yield.

Johnson & Johnson Keeps Delivering

Johnson & Johnson (NYSE: JNJ) announced a dividend hike by raising its payout 6.3% to a new $1.01 per share quarterly dividend. It may be a winner in some aspects of the coronavirus, but other business aspects may face pressure.  This defensive stock now yields close to 2.7%, and the mid-March dividend hike was the 58th consecutive year of dividend hikes. That makes it a double-Aristocrat, and it pays out close to half of its normalized earnings via dividends.

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