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10 Dividend Stocks Increasing Their Payouts
There are two types of dividend stocks: those that increase their annual dividend payments year after year, often referred to as Dividend Aristocrats, and those that grow their annual dividends by double-digit percentages every year. In early January, Rob Carrick, one of Canada’s best personal finance columnists, wrote an article about dividend stocks that doubled their payouts over the past 10 years. With an assist from Tom Connolly of DividendGrowth.ca, they’ve put together a list of stocks that have delivered 10-year annualized dividend growth of 7.2%. InvestorPlace – Stock Market News, Stock Advice & Trading Tips Why 7.2%? That’s the amount of growth you’d need based on the Rule of 72 — 72 divided by 7.2% equals 10– the number of years growth required to double a company’s dividend payout. Now the names on the list, while excellent businesses, are mostly traded exclusively on the Toronto Stock Exchange. Thus, some of them are only available over-the-counter, through a broker that has access to the TSX, or not at all. Of the 15, eight trade on a U.S. exchange. I’d check them out. Masco (NYSE:MAS) Rollins (NYSE:ROL) Moelis & Company (NYSE:MC) Tractor Supply (NASDAQ:TSCO) Victory Capital (NASDAQ:VCTR) GlaxoSmithKline (NYSE:GSK) T. Rowe Price (NASDAQ:TROW) S&P Global (NYSE:SPGI) Open Text (NASDAQ:OTEX) FirstService (NASDAQ:FSV) 7 Overvalued Stocks Investors Just Don’t Get Tired Of In the meantime, here are 10 dividend stocks that are likely to do the same. Dividend Stocks to Buy: Masco (MAS) Source: Africa Studio / Shutterstock.com Business has been good for the global leader in home improvement and building products whose brands include Behr Paint, Delta faucets, and Endless Pools. On Feb. 9, the Michigan-based company announced that it was increasing its annual dividend by 68% from 56 cents to 94 cents, starting with the Q2 2021 payment. Also, the company announced a new $2 billion share repurchase program effective immediately. “The anticipated dividend increase we’ve announced today, along with the new $2B share repurchase authorization, underscores our strong financial position and the Board’s confidence in our future,” stated Chief Executive Officer Keith Allman. In recent years, Masco has ridden the home improvement boom to deliver a five-year annualized total return of 17.3% through Feb. 12. With a trailing 12-month (TTM) free cash flow (FCF) of $840 million, it has an FCF yield of 5.3% based on an enterprise value of $15.8 billion. Rollins (ROL) Source: Shutterstock I’ve always liked Rollins, one of the world’s largest providers of pest control services. In May 2016, I included ROL in a group of 10 top stocks that ought to be in every retirement portfolio. It’s up 224% since then, and that doesn’t even include the dividends. “Over the long haul,…
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