50 Blue-Chip Dividend Stocks Increasing Payouts in Q1 2014
A look at the new payouts, dividend yields and more from some of Wall Street's biggest-name stocks
By
Kyle Woodley, Senior Investing Editor, Kiplinger
Apr 1, 2014, 5:58 am EST
If Q1 2014 felt like a middling quarter … well, that’s because it was. The S&P 500 entered the final day of first-quarter trading up fractionally year-to-date, and dividend stocks didn’t look much better. Funds focused around dividend stocks, such as Best Stocks contest entry Vanguard Dividend Appreciation ETF (VIG) and the SPDR S&P Dividend ETF (SDY), should end the quarter basically flat, too.
Still … that doesn’t mean Q1 was all bad news for anyone sitting on dividend stocks.
For one, Wall Street banks just received the results of their most recent federal stress tests, and they were widely positive. That should mean big bumps in the dividend yields of some huge blue-chip financials — Bank of America (BAC) and Morgan Stanley (MS) are forecast to produce some of the best payout improvements in the coming months.
We also got our regular deluge of paycheck increases from a wide array of dividend stocks, including a host of S&P 500 stocks, as well as six Dependable Dividend Stocks — companies that have upped their regular dividends for at least 25 consecutive years. And seven of the companies mentioned here have yet to go ex-dividend, meaning there’s still time to invest in these companies before they pay out at their newly improved dividend rates.
This batch of dividend stocks isn’t an end-all list of buy recommendations by any means. Far from it. But, it can provide you with a great jumping-off point for income investments. After all, companies that are able to increase their dividends typically are at least demonstrating more stability in their business — and, in many cases, you’re looking at some attractive dividend yields here, as well.
So, let’s get to it. Here are 50 of Wall Street’s bluest blue-chip stocks that have turned the dividend spigot just a little more during the past three months. We also list the new payout, percentage increase, yield based on the closing price on March 31, and payment and record dates:
American International Group (AIG)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.125
25%
1%
March 25
March 11
American International Group (AIG) announced its first dividend increase in mid-February — well less than a year after reinstating its payout! The improved quarterly dividend came alongside a Q4 report that showed AIG swinging to a profit after a year-ago loss, as well as news that the company planned on laying off about 3% of its global workforce.
Air Products & Checmicals (APD)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.77
8.5%
2.59%
May 12
April 1
Allstate (ALL)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.28
12%
1.98%
April 1
March 30
Apache Corp. (APA)*
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.25
25%
1.21%
May 22
April 22
* Goes ex-dividend April 17
BlackRock (BLK)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$1.93
15%
2.45%
March 24
March 7
Broadcom (BRCM)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.12
9.1%
1.53%
March 30
Feb. 14
Chubb (CB)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.50
13.6%
2.4%
April 1
March 14
Dependable Dividend StockChubb Corp. (CB) has really taken it on the chin early in 2014 after a fairly steady 30% ramp-up in 2013. The company is wildly underperforming the market, down more than 8% year-to-date. However, it offered a slight salve in the form of a roughly 14% bump to its dividend to 50 cents quarterly. The dividend on CB stock has now been hiked for 32 consecutive years, and it has improved by more than 7% annually over the past five years.
Cisco (CSCO)*
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.19
12%
3.39%
April 23
April 3
* Goes ex-dividend April 1
CME Group (CME)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.47
4%
2.54%
March 25
March 10
Comcast (CMCSA)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.225
15.4%
1.8%
April 23
April 2
The big news of the quarter for Comcast (CMCSA) was its proposed merger with Time Warner Cable (TWC). But the company also made waves for its deal with Netflix (NFLX) in response to “net neutrality” rules being hacked away, and is now making headlines again on reported talks with Apple (AAPL) over streaming TV service.
So, when the company announced it would be upping its quarterly payout to 22.5 cents per share … well, one can understand why that went mostly under the radar. Still, with the latest increase, CMCSA’s payout has more than tripled since 2009, when it was paying 7 cents quarterly. The new Comcast dividend yield sits just above 1.8%.
Comerica (CMA)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.19
12%
1.47%
April 1
March 14
Danaher (DHR)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.10
300%
0.53%
April 28
March 28
Danaher (DHR) made the biggest splash by far among the dividend stocks on this list, quadrupling its 2.5-cent quarterly dividend, with a 10-cent payout landing in late April. Granted, this dividend increase is the company’s first since 2011, so investors have been waiting quite a bit … plus, DHR still only yields 0.54%, so it hasn’t exactly vaulted Danaher into the ranks of dividend royalty.
Devon Energy (DVN)*
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.24
9%
1.43%
June 30
June 13
* Goes ex-dividend June 11
Dow Chemical (DOW)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.37
15%
3.05%
April 30
March 31
Family Dollar (FDO)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.31
19.2%
2.14%
March 12
Feb. 21
Ford (F)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.125
25%
3.21%
March 30
Jan. 31
General Dynamics (GD)*
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.62
10.7%
2.28%
May 9
April 11
* Goes ex-dividend April 9
General Dynamics (GD) investors can’t really ask for much more out of Q1. Holders of the defense company’s stock not only enjoyed a double-digit increase to the dividend, but a market-crushing 13% return through the final trading day of the quarter. That run was sparked by an excellent earnings report out in late January that was starkly different from the prior year, when the company’s information systems required a major writedown.
Hewlett-Packard (HPQ) is one of the best performers on this list, up nearly 15% year-to-date after doubling in 2013. Yes, this is the same Hewlett-Packard that many deemed destined for the meat wagon after HPQ shares shed about three-quarters of their value from 2010-12. Still, Hewlett-Packard has been slowing its revenue declines and earnings keep heading higher, making HPQ a much different critter than we thought it’d be just a couple years ago.
Home Depot (HD)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.47
21%
2.38%
March 27
March 13
Ingersoll-Rand (IR)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.25
19%
1.75%
March 31
March 14
L Brands (LB)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.34
13%
2.4%
March 7
Feb. 21
McGraw-Hill Financial (MHFI)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.30
7.1%
1.57%
March 12
Feb. 26
Molson Coors Brewing (TAP)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.37
16%
2.51%
March 17
Feb. 28
Noble Corp. (NE)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.375
50%
4.58%
Feb. 20
Feb. 10
Noble Corp. (NE) is another company that announced a big dividend increase in the midst of a pretty poor quarter. NE shares enjoyed a 50% hike to the dividend as of February, and at current prices, the dividend yield is a healthy 4.7%. Of course, that has come after a rather unhealthy Q1 in which the stock dipped 13%.
Nordstrom (JWN)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.33
10%
2.11%
March 25
March 10
Norfolk Southern (NSC)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.54
3.8%
2.22%
March 10
Feb. 7
Oneok (OKE)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.40
5%
2.7%
Feb. 18
Feb. 10
PPL Corp. (PPL)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.3725
1%
4.5%
April 1
March 10
Praxair (PX)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.65
8%
1.99%
March 17
March 7
Qualcomm (QCOM)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.42
20%
1.78%
TBD
TBD
Qualcomm’s (QCOM) enjoyable 2014 was made even better thanks to an announced 20% hike to its dividend, effective as of its next payout sometime in June. Qualcomm, most known for its communications technologies and chipsets, also released a smartwatch — the Toq — in late December, and is increasingly trying to become a part of the “connected home.” So far, optimism in Qualcomm has resulted in 7% gains for QCOM for the year-to-date.
Realty Income (O)
New Payout**
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.1825
0.17%
5.36%
April 15
April 1
** Monthly payout
Realty Income (O), affectionately known as the “Monthly Dividend Company,” notched yet another uptick in its monthly income check with a 0.17% increase to 18.25 cents per share. The company currently boasts 66 consecutive quarterly increases to its payout, and at 5%-plus in dividend yield and 9% in gains so far this year, Realty Income has to be among Wall Street’s favorite dividend stocks this year.
Ross Stores (ROST)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.20
18%
1.12%
March 31
March 10
Sempra Energy (SRE)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.66
5%
2.73%
March 31
March 10
Sherwin-Williams (SHW)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.55
10%
1.12%
March 14
March 3
Sherwin-Williams (SHW) hit another milestone, celebrating its 35th consecutive year of increased dividend payouts thanks to its 10% hike in March. That announcement will keep SHW on the Dependable Dividend Stocks list for another year.
Spectra Energy (SE)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.335
9.8%
3.63%
March 10
Feb. 14
St. Jude Medical (STJ)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.27
8%
1.65%
April 30
March 31
Suncor Energy (SU)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.23
15%
2.37%
March 25
March 4
Time Warner Cable (TWC)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.75
15%
2.19%
March 17
Feb. 28
The other half of the Comcast merger party, Time Warner Cable (TWC), also bumped up its dividend this past quarter. With its latest increase — to 75 cents quarterly) — Time Warner’s payout has now grown by 88% since establishing regular dividends in 2010.
Toronto-Dominion Bank (TD)*
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.47
9.3%
3.6%
April 30
April 3
* Goes ex-dividend April 1
T. Rowe Price (TROW)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.44
16%
2.14%
March 28
March 14
UPS (UPS)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.67
8.1%
2.75%
March 11
Feb. 24
Valero Energy (VLO)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.25
11.1%
1.88%
March 12
Feb. 12
Walmart (WMT)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.48
2%
2.51%
April 1
March 11
Walmart (WMT) has not had itself a good 2014. The company suffered a substantial fourth-quarter sales and profit decline that it blamed heavily on lousy weather, and has been in the crosshairs of the minimum wage debate. WMT has declined 3.4% so far this year — underperforming the market — but considering any lack of positive spark, one could reasonably expect it to have done worse. Investors did receive an increase in Walmart’s quarterly dividend, but it was a token one — at just 2%, this is one of its weakest improvements ever.
Waste Management (WM)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.375
2.7%
3.57%
March 21
March 10
WellPoint (WLP)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.4375
17%
1.76%
March 25
March 10
Xerox (XRX)
New Payout
% increase
DIVIDEND Yield as of 3/31
Payment Date
Record date
$0.0625
8.7%
2.21%
April 30
March 31
Kyle Woodley is the Deputy Managing Editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley.