With all the other investment strategies out there, why should investors consider dividend or income investing? There are a multitude of reasons to follow a dividend growth strategy. These include: investment stability, security of cash, continuous feedback, potential higher returns, low maintenance, et. al. But for me the most important reason is the inflation hedge that a growing income will provide in my retirement years.
Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends:
Royal Gold, Inc. (NASDAQ:RGLD) acquires and manages precious metals royalties, metal streams, and similar interests. On November 10 the company increased its quarterly dividend 4.5% to $0.23 per share. The dividend is payable January 22, 2016 to stockholders of record on January 8, 2016, with an ex-dividend date of January 6, 2016. The yield based on the new payout is 2.4%.
New Jersey Resources Corporation (NYSE:NJR), an energy services holding company, provides regulated gas distribution services and retail and wholesale energy services. On November 10 the company increased its quarterly dividend 6.7% to $0.24 per share. The dividend is payable January 4, 2016 to stockholders of record on December 17, 2015, with an ex-dividend date of December 15, 2015. The yield based on the new payout is 3.2%.
McDonald’s Corporation (NYSE:MCD) is the largest fast-food restaurant company in the world, with about 35,000 restaurants in 119 countries. On November 10 the company increased its quarterly dividend 5% to $0.89 per share. The dividend is payable December 15, 2015 to stockholders of record on December 1, 2015, with an ex-dividend date of November 27, 2015. The yield based on the new payout is 3.1%.
Prudential Financial, Inc. (NYSE:PRU) provides insurance, investment management, and other financial products and services to individual and institutional customers in the United States and internationally. On November 10 the company increased its quarterly dividend 21% to $0.70 per share. The dividend is payable December 17, 2015 to stockholders of record on November 24, 2015, with an ex-dividend date of November 20, 2015. The yield based on the new payout is 3.2%.
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