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30 Blue-Chip Dividend Stocks Increasing Payouts in Q3 2014

This year’s third quarter wasn’t exactly the strongest for big, dividend-paying stocks. While the S&P 500 advanced by about 1% over the past three months, dividend funds such as the SPDR S&P Dividend ETF (SDY) and the iShares Select Dividend ETF (DVY) actually found themselves in the red by 1.5% and 3.5%, respectively.

blue-chip-dividend-stocks-dividend-yieldOf course, true dividend investors couldn’t care less about capital appreciation over a three-month period. After all, dividend stocks are about the long haul and the cash.

On that front, there was plenty to cheer about in Q3, as hundreds of companies boosted their regular payouts. As always, we highlight some of the biggest players in the game, this time looking at 30 blue-chip dividend stocks that announced bigger cash distributions during the past quarter.

This group of blue-chips includes a few Dow Jones Industrial Average components and a host of S&P 500 stocks. Moreover, 11 of these companies haven’t even gone ex-dividend yet, which means if you’ve been thinking about buying any of these stocks, you can get in before they pay out their first dividend at the new higher rate.

As a note, we’re not recommending any of the dividend stocks mentioned. Instead, this is just a reference for anybody looking into income investments, especially those that are keeping upward pressure on their payouts.

So, here’s a look at 30 blue-chip dividend stocks that have opened up their wallets during the past three months, including the new payout, percentage increase, dividend yield based on the closing price on Sept. 29, and payment and record dates:

Altria (MO)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.52 8.3% 4.52% Oct. 10 Sept. 15
Bank of America (BAC)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.05 400% 1.18% Sept. 26 Sept. 5

Bank of America (BAC) was by far and away the most generous improver of its dividend — at least on a percentage basis. BofA announced the first increase to its payout since the 2008-09 financial crisis forced the bank to whittle its dividend down from 64 cents to 32, then just a penny per share. The company tried to increase its dividend to 5 cents earlier this year, but the Federal Reserve nixed the plan after BofA’s capital plan submission was found to have accounting errors. Still, even with the 400% juicing to its dividend, BAC is no dividend titan — the company yields little more than 1%.

Bank of Nova Scotia (BNS)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.66 3.125% 4.24% Oct. 29 Oct. 7
* Goes ex-dividend Oct. 3
CBS Corp. (CBS)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.15 25% 1.1% Oct. 1 Sept. 10
ConocoPhillips (COP)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.73 5.8% 3.75% Sept. 2 July 21
Covidien (COV)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.36 13% 1.64% Nov. 6 Oct. 7
* Goes ex-dividend Oct. 3

Irish medical products company Covidien (COV) jumped 25% after Medtronic (MDT) announced that it was acquiring COV in a so-called “inversion deal” that would allow Medtronic to reincorporate in Ireland and lessen its tax burden. However, the Treasury Department laid down new rules cracking down on such deals, which could change the nature of this acquisition — or even cause the deal fall through completely. While COV shareholders wait this one out, they’ll enjoy a 13% improvement to their quarterly dividends.

Cummins (CMI)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.78 23.8% 2.35% Sept. 2 Aug. 22
Duke Energy (DUK)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.795 1.9% 4.29% Sept. 16 Aug. 15
DuPont (DD)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.47 4.4% 2.61% Sept. 12 Aug. 15
Harris Corp. (HRS)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.47 12% 2.8% Sept. 23 Sept. 9
Hershey (HSY)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.535 10% 2.26% Sept. 15 Aug. 25
International Paper (IP)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.40 14% 3.34% Dec. 15 Nov. 17
* Goes ex-dividend Nov. 13
KLA-Tencor (KLAC)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.50 11% 2.5% Sept. 2 Aug. 18
Kroger (KR)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.185 12.1% 1.42% Dec. 1 Nov. 14
* Goes ex-dividend Nov. 12

Kroger’s (KR) blockbuster year continued in Q3, when the company announced a 12.1% sweetening of its dividend to 18.5 cents per share. Consider that the cherry on the top of KR shares’ 30% run through nine months.

Lockheed Martin (LMT)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$1.50 13% 3.31% Dec. 26 Dec. 1
* Goes ex-dividend Nov. 26
McDonald’s (MCD)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.85 5% 3.53% Dec. 15 Dec. 1
* Goes ex-dividend Nov. 26

McDonald’s (MCD) maintained its place among InvestorPlace’s Dependable Dividend Stocks by upping its payout 5% this past quarter to 85 cents per share. That provided a little bit of comfort to shareholders that have watched McDonald’s decline 1% in a broader market that’s up by the high single digits. That’s not bad for new money, though — McDonald’s now yields closer to 4% than 3%.

Microsoft (MSFT)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.31 11% 2.67% Dec. 11 Nov. 20
* Goes ex-dividend Nov. 18

Microsoft’s (MSFT) unusually brisk stock performance this year — 25% gains year-to-date — obviously has pleased MSFT stock holders that have suffered rangebound movement for years. Microsoft’s latest dividend increase of 11% doesn’t exactly catch the quarterly payout up with the stock’s gains, but no one’s complaining.

Nabors Industries (NBR)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.06 50% 1.04% Sept. 30 Sept. 9
Oneok (OKE)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.575 3% 3.48% Aug. 14 Aug. 4
Paychex (PAYX)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.38 8.6% 3.44% Aug. 15 Aug. 1
Philip Morris International (PM)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$1.00 6.4% 4.84% Oct. 10 Sept. 25
Republic Services (RSG)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.28 7.7% 2.89% Oct. 15 Oct. 1
Royal Bank of Canada (RY)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.75 5.6% 4.21% Nov. 24 Oct. 27
* Goes ex-dividend Oct. 23

We occasionally bring up the virtue of Canadian banks, which typically pay much more robust dividends than their American counterparts. Well, another of those banks has pushed its dividend even farther up the hill, with Royal Bank of Canada (RY) bumping its regular payout up by more than 5%. RY stock now yields nearly 3.8%.

Royal Caribbean Cruises (RCL)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.30 20% 1.79% Oct. 2 Sept. 22
Texas Instruments (TXN)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.34 13% 2.82% Nov. 17 Oct. 31
* Goes ex-dividend Oct. 23
Union Pacific (UNP)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.50 8.7% 1.84% Oct. 1 Aug. 29
Valero Energy (VLO)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.275 10% 2.35% Sept. 17 Aug. 20
Verizon Communications (VZ)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.55 3.8% 4.42% Nov. 3 Oct. 10
* Goes ex-dividend Oct. 8
Williams Cos. (WMB)
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.56 31.8% 4% Sept. 29 Sept. 12

Energy infrastructure firm Williams Cos. (WMB) announced its third dividend increase this year, which means the company has now padded its payout for 12 consecutive quarters. WMB shareholders are doing nothing but cheering this year, thanks to gains of 45% — helped by June’s news that Williams was moving to purchase the remaining interest in Access Midstream Partners, LP (ACMP).

Yum Brands (YUM)*
New Payout % increase DIVIDEND Yield as of 9/29 Payment Date Record date
$0.41 10.8% 2.26% Nov. 7 Oct. 17
* Goes ex-dividend Oct. 15

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

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Article printed from InvestorPlace Media, https://investorplace.com/2014/09/blue-chip-dividend-stocks-q3/.

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