The dividend stocks we’ve identified have increased their investor distributions recently
SmallCapPower | May 7, 2020: Many companies have been forced to either cut, or eliminate, their dividend as a result of the economic uncertainty related to COVID-19. The dividend stocks on our list, though, have actually announced an increase in their investor payout since the COVID-19 pandemic began.
*Returns are based on closing stock prices as of May 6, 2020
American Water Works Company, Inc. (NYSE:AWK) – $117.78
American Water Works is the largest and most geographically diverse U.S. publicly-traded water and wastewater utility company, providing regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. The Company expects to grow its earnings per share at compound annual rate of 7% to 10% through 2024. As well, American Water Works has grown its dividend payout by more than 10% per year on average compounded during the past five years. On April 29, 2020, the Company announced a 10% increase its quarterly cash dividend payment to $0.55 per share. American Water Works has a target payout ratio between 50% to 60% of net income. AWK stock has a current yield of 1.8%.
- One-Year Return: 12% (Excluding dividends)
Newmont Corporation (NYSE:NEM) – $62.43
Newmont, publicly traded since 1925, is the world’s leading gold company and a producer of copper, silver, zinc as well as lead and is the only gold producer listed in the S&P 500 Index. The Company produced 1.5 million attributable gold ounces during Q1 2020 as well as $611 million of free cash flow. NEM asserts that it expects to generate an addition $400 million in free cash flow annually for each $100 increase in the gold price. Newmont recently increased its quarterly dividend by 79% to $0.25 per share. NEM stock has a current yield of 1.5%.
- One-Month Return: 112% (Excluding dividends)
Johnson & Johnson (NYSE:JNJ) – $148.08
Johnson & Johnson is the world’s largest and most broadly-based healthcare company with well-known brands such as Tylenol and Listerine. During the first quarter of 2020, the Company reported a 3.3% increase in sales to $20.7 billion along with a 56% surge in earnings per share. JNJ raised its dividend by 6% in April, its 58th consecutive year of annual dividend increases and the Company has a payout ratio of about 44%. Johnson & Johnson stock has a current yield of 2.7%.
- One-Year Return: 7% (Excluding dividends)
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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