This part of the year, when kids escape school and people head to the beach, isn’t usually heavy with dividend raises. Still, investors wanting to boost their overall yield can take advantage of a few recent hikes from notable companies.
Two dependable operators that have declared dividend raises in recent days, in fact, haven’t yet hit their ex-dividend dates. Happily, this means that investors can still buy into those hikes. Read on for more about the latest lifts from Deere (NYSE: DE) and Realty Income (NYSE: O).
A habitual shareholder payer, Deere declared its latest in a history of dividend raises at the end of May. The farm equipment mainstay is cranking its quarterly payout 8% higher to $1.13 per share.
The world is facing a shortage in food crops largely because of the war in Ukraine, so Deere is an important manufacturer these days. This is reflected in the company’s recent results; despite the supply chain shortages all manufacturers have to endure, Deere still managed to boost its net sales 9% higher on a year-over-year basis, and expand net income by a robust 17% in its most recently reported quarter.
The future is exciting for Deere, as innovation should keep the goods rolling out of the factory. The company has invested heavily in automated technology, to the point where it’s soon to introduce an autonomous tractor. This, combined with the pinpoint accuracy of its See & Spray Ultimate crop spraying solutions, will surely keep Deere’s competitive edge sharp and make its stock an increasingly compelling investment.
Deere’s dividend raise kicks in on Aug. 8, when the next distribution is to be paid. This will be handed out to stockholders of record as of June 30. At the most recent closing share price, the new distribution would yield 1.4%.
2. Realty Income
As Deere is to agricultural machinery, Realty Income is to retail spaces. The latter company is a real estate investment trust (REIT) that specializes in leasing space to stores in shopping centers and malls.
Famous as a monthly dividend payer, Realty Income declared a new payout in mid-June. It’s enacting a marginal dividend raise of less than 1%, to just shy of $0.25 per share.
In business for 53 years, Realty Income has accumulated a massive portfolio of more than 11,200 properties, and its tenant list comprises some of the most recognized retailers. Walgreens Boots Alliance‘s Walgreens tops the list, with convenience store 7-Eleven close behind. FedEx and CVS Health are also regular rent payers.
Speaking of rent, Realty Income tends to sign its tenants to long-term triple net leases that stipulate annual increases.
That not only saves expenses, it also keeps the cash flowing in for years from those renters, many of whom operate strongly recession-resistant businesses. The REIT is able to consistently raise its revenue and profitability, and with its strong cash flow and dividend policy, it has become one of the few REITs on the list of hallowed Dividend Aristocrats.
Realty Income’s freshly raised monthly dividend will be handed out on July 15 to investors of record as of July 1. It would yield 4.6% at the current stock price.