Investors who need income from their portfolios have increasingly turned to dividend-paying stocks. By offering both reliable quarterly income and the potential for growth, dividend stocks look a lot more attractive than low-rate bank accounts and bonds that can’t even keep up with inflation.
The best dividend stocks in the business don’t just sustain their payouts year in and year out. They also provide regular dividend increases in a predictable manner. In particular, the three stocks we’ll discuss here have traditionally announced dividend increases around this time of year, and all signs point toward their doing so again in 2021. Let’s take a closer look at all three of these dividend giants.
Dover (NYSE: DOV) isn’t a household name among most investors, but it has one of the longest track records of dividend growth in stock market history. For 65 straight years, the industrial company has boosted its annual payout to shareholders, with its most recent boost having come last August. With a quarterly payout of $0.495 per share, Dover carries a yield of 1.3%.
Dover makes a wide array of industrial equipment and components. The company serves a number of end users in different industries ranging from engineered products to refrigeration and food equipment. Its business generates ample cash flow, and Dover’s earnings growth has been modest but consistent over the long haul.
Dover typically declares annual dividend increases in early August, and that’s likely again this year. Given the minimal size of increases in recent years, shareholders should probably expect just a tiny 1% boost to $0.50 per share each quarter to keep its streak alive. Nevertheless, with many companies cutting dividends in the past year, even a small increase would be a nice bonus for Dover investors.
2. PPG Industries
Paint specialist PPG Industries (NYSE: PPG) also has an impressive record of long-term dividend growth. For 50 straight years, PPG has delivered annual dividend increases to shareholders. The most recent came in July 2020, which took the size of the quarterly payment up to $0.54 per share.
PPG has proven to be a big winner during the COVID-19 pandemic, as property owners turned their attention homeward to spruce up their living quarters during lockdowns. That’s sent the stock soaring, adding dramatically to total returns on top of PPG’s 1.3% dividend yield.
PPG is scheduled to report its latest earnings results on July 19, and historically, the company has often taken the opportunity to announce its annual dividend increase on the same day. That gives intrepid investors less than a week before a boost could come, and given last year’s increase of 6%, a payout of $0.57 per share each quarter going forward isn’t out of the realm of possibility for PPG.
3. Stanley Black & Decker
Lastly, Stanley Black & Decker (NYSE: SWK) is a likely dividend booster in the imminent future. Investors have enjoyed 54 straight years of dividend increases, with a current payout of $0.70 per share giving investors a 1.4% dividend yield. The most recent increase got paid out to shareholders last August.
Stanley Black & Decker’s hardware and power tool business has proven to be a growth opportunity during the pandemic as well, given the increased demand from do-it-yourselfers looking to do work on their homes and vehicles to economize. The 2010 merger of Stanley Works and Black & Decker combined complementary businesses that together have created a leader in its industry niche.
It was a year ago almost to the day that Stanley Black & Decker announced its most recent dividend increase, so another boost could come as soon as this week. Investors can hope that an increase will be larger than the $0.01-per-share increase that the company paid last year, as the 6% to 9% rises that were more common in the late 2010s could justify an increase to $0.75 per share.
Be ready for higher dividends
There’s no guarantee that even these three dividend giants will extend their track records of payout performance. However, with Stanley Black & Decker, PPG Industries, and Dover all weighing in with solid business prospects, income investors can be optimistic that they’ll get a little more in dividends from these three companies soon.
10 stocks we like better than Dover
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Dover wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of June 7, 2021