Recently Announced Dividend Raises January 2016

As dividend income investors we are constantly seeking reliable sources of passive income from profitable companies that share their revenues with shareholders. But most of us take it a step further than simply investing in dividend stocks. After all, what good is a dividend distribution if it is not sustainable and gets cut or worse eliminated? We seek the coveted dividend raiser. The elite group of companies that historically raise their dividend every year. With that being said I’d like to review some recent dividend increase announcements from many well known companies and some lesser known companies.

 

First up raising dividends in the energy space is Holly Energy Partners L.P (HEP). HEP recently declared a quarterly dividend of $0.565 per share, a 1.8% increase. HEP currently yields 8.69%.

 

Also in the oil patch, Valero Energy Corporation (VLO) increased its regular quarterly dividend from $0.50 per share to $0.60 per share. VLO currently yields 3.54%.

 

Finally, in the energy sector ONE Gas, Inc. (OGS) announced a dividend raise from $0.30 to $0.35 a share. OGS has a current yield of 2.66%.

 

In the automotive sector, General Motors Company (GM) will bump its quarterly dividend from $0.36 to $0.38 per share. The current yield for GM is 4.92%.

 

Lesser known Nexstar Broadcasting Group, Inc. (NXST) is making their shareholders happier with an increased dividend of $0.24 per share up from $0.19. NXST currently yields 1.93%.

 

Hunting for increased yield in the utilities sector? Look no further than WEC Energy Group, Inc. (WEC) that raised its dividend 8.2% from $0.4575 to $0.495. WEC currently yields 3.69%.

 

Dividend raiser stalwart Consolidated Edison, Inc. (ED) declared a quarterly dividend of $0.67 an annualized increase of $0.08 cents over the previous annualized dividend of $2.60. ED currently yields 3.94%.

 

Finance sector South State Corporation (SSB) increased its dividend 7.7% from $0.26 to $0.28 per share. SSB currently yields 1.61%.

 

Getting a dividend raise is always a welcome gesture. After all, who doesn’t like getting a raise? Are any of the companies mentioned in your portfolio? Please let me know below.

 

Disclosure: Long ED

24 thoughts on “Recently Announced Dividend Raises January 2016

  1. Lots of increases so far and VLO’s was quite nice especially given the current O&G environment. I don’t know of or follow most of these companies but WEC and ED look interesting and possibly ones to look into further. O and OHI have also given investors raises this month which is good for many of us since a lot of us own them. I hope PSX follows VLO’s lead and gives a nice boost to their dividend. It’s always a great day to get a raise!
    JC @ Passive-Income-Pursuit recently posted…Weekly Roundup – January 23, 2016My Profile

    • Hi JC,

      As you said, “It’s always a great day to get a raise!” How true. One of the perks of investing in quality companies that continually reward shareholders simply for owning their shares. To be honest, I was quite surprised to find several oil patch companies offering raises at this time. The VLO raise was quite large considering what’s happening to oil. Utilities, of course, are known for the stable dividends. Typically you get small increases but relatively high current yield. Even in rocky times dividends continue to go up. Thank you for commenting.

  2. We don’t hold any of the mentioned stocks, but are surprised that there are quite a few energy stocks that raised dividends. We did not expect that considering the current market conditions (i.e. oil price and associated impacts). A well, good for you who do own these stocks!
    Team CF recently posted…2015 Asset AllocationMy Profile

    • Hi TCF,

      I too was surprised to read about these energy companies raising their dividends considering what’s going on with oil. The VLO raise was quite large but it’s known that refiners tend to do well when oil is not as expensive. These updates just goes to show that even during bad economic and market climates, many companies can continue to pay and raise their dividends. Thank you for stopping by and commenting.

    • Hi Tristan,

      I often talk about the trifecta of dividend investing which includes, adding fresh capital, dividend raises and basic compounding to create an ever increasing passive income stream. If you can take advantage of all three the faster your dividend snowball grows. Of course, even if you cannot add fresh capital, just getting a dividend raise will help push that snowball along too. As always, I appreciate your comment.

  3. I was really surprised to see the 20% raise from VLO. Its not a company I closely follow, but was interesting to see such a huge raise coming from the energy sector, when everyone bleeding cash. I guess I have to take a look again at the oil service sector and see if something interests me.

    Thanks for sharing
    R2R
    Roadmap2Retire recently posted…Safe Haven InvestingMy Profile

    • Hi R2R,

      I agree, the VLO raise was quite large considering what’s going on in the energy sector as a whole. The refiners though, are in a little different situation when oil heads lower as it reduces their input costs and as such tend to not get as negatively impacted with lower oil prices. Still, it was a nice increase and just goes to show that even during turbulent economic times many companies can and do raise dividends. Thank you for sharing your thoughts.

  4. VLO’s was a nice surprise, WEC’s less so since management is on a mission to increase the payout ratio. I don’t follow the others in your post. What I find most interesting is the higher than expected increases. For instance my portfolio companies have announced 21 raises through Q1. The average increase is 12.1%. With all the negative press, I am pleasantly surprised that it’s not lower.

    • Hi Charlie,

      As I have commented above, these posts simply offer more proof that when you invest in quality companies with sustainable dividends you can expect distributions to continue along with raises, even during rough market and economic conditions. WEC, like ED usually offer smaller dividend raises but are very consistent with them. Regarding VLO, I think many were surprised by that increase but it should be known that refiners are in a slightly different position when it comes to low oil prices. Thank you for stopping by and commenting.

    • Hi Vivianne,

      Sometimes when I read these posts on other blogs and see that I don’t own any of the names mentioned I feel a little left out. I felt that way with the last AMGN raise. One thing this update showed me was that low oil prices still have not slowed down many dividend distributions coming from the oil patch. Thank you for commenting.

    • Hi DC,

      Well said. Decade after decade ED has delivered consistent raises. The increases may be small but the current yield is quite attractive. Thank you for sharing your thoughts.

  5. I’m not too familiar with most of the companies listed except GM and ED. I actually have a pretty large position in ED compared to the rest of my portfolio. When I just started out as a dividend growth investor, this was one of my first purchases since it has a long track record of increasing dividends, a nice dividend yield, and it’s a good defensive stock to own.

    • Hi ACI,

      Many bloggers in the dividend growth space do not hold utilities because their dividend raises tend to be small. I happen to hold three, ED, SO and D and while not a large part of my portfolio I feel every long term dividend investor should find some space for a utility or two. As you are already familiar with ED, you know that those dividend raises have become very reliable over multiple decades. That in itself is a testament to the stock, sector and management. Thank you for stopping by and commenting.

    • Hi DB,

      If you hold any of the aristocrats, challengers, etc. there’s an almost certainty that you’ll experience several dividend raises this year. Everyone loves getting a raise, especially when you don’t have to kiss up or work late to get them. As always, I appreciate your comment.

    • Hi BSR,

      I always say, an increase is an increase no matter if it’s large or small. I’m sure any long term dividend investor will appreciate any raise. I think the biggest surprise for me was to read about several oil patch companies raising and the VLO raise was quite unexpected. Thank you for stopping by and commenting.

    • Hi DB,

      The energy sector is proving to be quite resilient in the face of these massive headwinds it’s facing. Sure, bankruptcies are occurring as well as mass layoffs, however, quite a few energy companies are continuing to pay out dividends and even raise them. Thank you for sharing your SE raise.

  6. Surprised to see energy related stocks on the list. But as an investor you can’t really complain provided the dividend is covered by free cashflow. This goes very well with posts you’ve written before on staying the course during times of market volatility and dips. It just goes to show that even if the oil price is in the doldrums, there are oil related companies that are profitable at current levels that keep sending you a chunk of the profits. Never sell a stock just because the price has fallen. You need to look at the overall picture and firm specific financials. It is exactly what happened in 08 when stocks of certain companies were falling despite the earnings and dividends increasing.
    Money Grower UK recently posted…Genie Energy (GNE) Stock Purchase – Israel’s Future Oil GiantMy Profile

    • Hi MGUK,

      Well said. I think many get spooked when they see dramatic dips in share prices and consider selling otherwise solid long term dividend payers. In general, when I experience a massive sell off in one of my holdings, and I still believe in the company/industry as a whole, I simply buy more and average down my cost and enjoy a higher yield on my current buy. This is why I always say buy companies with “safe” and reliable dividends instead of simply chasing the attractive yields. Safe is in quotes because no dividend, no matter which company pays it is ever guaranteed, no matter the cash flow, no matter the payout ratio. Dividends are not rights, though sometimes as shareholders we feel entitled to them. Thank you for stopping by and commenting.

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