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Don’t let your busy Thanksgiving week cause you to miss these five dividend increases.
I know it’s a busy week for most. Thursday is Thanksgiving and Friday is the biggest shopping day of the year.
But that doesn’t mean your portfolio should go by the wayside. Dividend investing is an easy way to collect income while you’re in a turkey-induced coma or braving the long lines at the Apple Store waiting for the latest iPhone.
Last week, I highlighted a high-yielding theme park operator and an underrated semiconductor company that’s upped its dividend for 14 straight quarters.
This week is packed with some much more familiar names. Let’s dive into the top five stocks set to increase their dividend this week.
Dividend Increase No. 1: Barnes Group Inc. (NYSE: B)
Despite a rather pedestrian dividend yield of 1.3%, Barnes is still an interesting play in the current market. Shares are down 3% year-to-date. But being an industrial manufacturer, Barnes should benefit from a strengthening global economy.
It makes a number of aerospace and industrial products that are used in a variety of applications, including technology, transportation and communication. Its top customers include the likes of General Electric (NYSE: GE), the Department of Defense and Rolls-Royce.
Barnes had to trim its dividend back in 2009. But it has paid a dividend every quarter for over 14 years. Now it’s upping its dividend by another 9%. What’s more is that its current dividend payout is just 20% of earnings.
Shares will trade ex-dividend Nov. 25.
Dividend Increase No. 2: Lockheed Martin Corporation (NYSE: LMT)
America’s largest defense contractor is upping its dividend by close to 13% this week, from a quarterly dividend payout of $1.33 to $1.50 a share. It trades ex-dividend Nov. 26. Because it has upped its dividend each of the last 11 years, I view Lockheed as a low-risk investment.
Lockheed’s dividend yield is also tops in the industry, coming in at 3.3%. That dwarfs major competitors like General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC). Meanwhile, Lockheed also manufacturers one of the most popular defense items in the arms industry, the F-35 fighter jet.
Dividend Increase No. 3: McDonald’s Corp. (NYSE: MCD)
McDonald’s needs no introduction.The fast-food behemoth is upping its quarterly dividend payment from 81 cents to 85 cents this week and will trade ex-dividend Nov. 26.
I’ve given McDonald’s some flack for its struggles to stay relevant with health-focused customers. But one thing is certain: it’s a dividend-paying machine.
Offering a yield of 3.5%, when the S&P 500 average dividend yield is 1.9%, is impressive enough. Add in the fact that it’s a Dividend Aristocrat — having upped its dividend for 37 straight years — and income seekers will find it hard to not take a second look.
My colleague Chris Preston highlighted both Lockheed and McDonald’s in his November dividend stocks to buy piece. Since then, shares of each are up 4% and 6%, respectively. Despite the higher share prices, the high yields for both stocks remain in tact thanks to the latest increases.
Dividend Increase No. 4: Time Inc. (NYSE: TIME)
Time Inc. was spun off from Time Warner (NYSE: TWX) back in June. It operates as a magazine publisher, with brands that include People, Sports Illustrated, Time Magazine, Entertainment Weekly and Fortune.
Shares will trade ex-dividend on Nov. 26. This will be Time Inc.’s first dividend. The 19-cent payout already gives the stock a 3.2% yield.
Time made my list of five spinoffs to own back in October. It trades at 16 times next year’s earnings estimates, roughly in line with the S&P 500 and cheaper than fellow magazine publisher Meredith Corporation (NYSE: MDP).
Dividend Increase No. 5: The Goldman Sachs Group, Inc. (NYSE: GS)
Last, but certainly not least, is one of the most well-known investment banks on Wall Street. Goldman Sachs is upping its dividend to 60 cents this week, from 55 cents. It’ll trade ex-dividend Nov. 28.
Its dividend yield of 1.3% is somewhat low. However, the bank has paid a dividend every year since its 1999 IPO. Goldman has managed to increase its annual dividend for two years in a row and its payout ratio is an ultra-low 14% — leaving plenty of room for future increases.
Trading at a share price of $190 makes Goldman’s stock seem expensive. But in truth, it’s rather cheap. Shares trade at a P/E (price-to-earnings) ratio of less than 11, which is below both Morgan Stanley (NYSE: MS) and JPMorgan Chase (NYSE: JPM).
Goldman’s 11.5% return on equity is also above those two major rivals.
This is the T-Rex of Dividend Stocks
After years of digging – we’ve finally did it. We’ve uncovered a single stock so fierce – and pays out dividends so IMMENSE – you can actually live off them. This cash-cranking T-Rex of a company has hiked its dividend 10-FOLD… paying investors like you dividends of $428.57, $913.93, and $924.43! If these ever-increasing payouts sound good to you, click here for all the details.