One of the biggest threats behind income investors who are living off dividends
in retirement is inflation. Even a portfolio consisting of the highest yielding
stocks today, which maintain their distributions, would produce an income which
loses purchasing power over time. As a result investors should focus on
companies which can afford to regularly raise distributions every year. A good
starting point includes companies which have consistently raised dividends for a
long period of time. I have highlighted several stocks, which not only have
raised distributions for over five years in a row, but also announced dividend
increases over the past week: Archer Daniels Midland Company (NYSE: ADM )
procures, transports, stores, processes, and merchandises agricultural
commodities and products in the United States and internationally. It operates
in three segments: Oilseeds Processing, Corn Processing, and Agricultural
Services. The company raised its quarterly dividend by 6.70% to 16 cents/share.
This marked the thirty-sixth consecutive annual dividend increase for this
dividend aristocrat . This dividend growth stock has managed to increase
distributions by 12.60% per year over the past decade. Yield: 1.80% ( analysis )
Avon Products Inc. (NYSE: AVP ) manufactures and markets beauty and related
products worldwide. The company raised its quarterly dividend by 4.50 % to 23
cents/share. This marked the 22nd consecutive annual dividend increase for this
dividend achiever . This dividend growth stock has managed to increase
distributions by 9.10% per year over the past decade. Yield: 3.20% Meredith
Corporation (NYSE: MDP ) a media and marketing company, engages in magazine and
book publishing, television broadcasting, integrated marketing, and interactive
media business in the United States. It operates in two segments, Publishing and
Broadcasting. The company raised its quarterly dividend by 10.90% to 25.50
cents/share. This marked the 17th consecutive annual dividend increase for this
dividend achiever . This dividend growth stock has managed to increase
distributions by 11.10% per year over the past decade. Yield: 3% Avista
Corporation (NYSE: AVA ), an energy company, engages in the generation,
transmission, and distribution of energy and energy-related businesses in the
United States and Canada. The company operates through two segments, Avista
Utilities and Advantage IQ. The company raised its quarterly dividend by 10% to
27.50 cents/share. This marked the ninth consecutive annual dividend increase
for this dividend stock. This dividend growth stock has managed to increase
distributions by 7.60% per year over the past decade. Yield: 4.80% DCP Midstream
Partners, LP (NYSE: DPM ) engages in gathering, compressing, treating,
processing, transporting, and selling natural gas. The company raised its
quarterly distribution to 61.75 cents/unit. This marked the sixth consecutive
annual distribution increase for this master limited partnership . This dividend
growth stock has managed to increase distributions by 7.00% per year over the
past three years. Yield: 6.30% Nu Skin Enterprises, Inc. (NYSE: NUS ) develops
and distributes anti-aging personal care products and nutritional supplements
worldwide. The company raised its quarterly dividend by 8% to 13.50 cents/share.
This marked the eleventh consecutive annual dividend increase for this dividend
achiever. This dividend growth stock has managed to increase distributions by
6.80% per year over the past five years. Yield: 1.80% Jack Henry & Associates,
Inc. (NASDAQ: JKHY ) provides integrated computer systems and services for
in-house and outsourced data processing to commercial banks, credit unions, and
other financial institutions primarily in the United States. The company raised
its quarterly dividend by 10.50% to 10.50 cents/share. This marked the 19th
consecutive annual dividend increase for this dividend achiever. This dividend
growth stock has managed to increase distributions by 14.30% per year over the
past decade. Yield: 1.40% Ross Stores, Inc. (NASDAQ: ROST ), together with its
subsidiaries, operates two chains of off-price retail apparel and home
accessories stores in the United States. The company raised its quarterly
dividend by 37.50% to 22 cents/share. This marked the sixteenth consecutive
annual dividend increase for this dividend achiever . This dividend growth stock
has managed to increase distributions by 23.70% per year over the past decade.
Yield: 1.30% Hasbro, Inc. (NASDAQ: HAS ) engages in the design, manufacture, and
marketing of games and toys. The company raised its quarterly distributions by
20% to 30 cents/share. This marked the eight consecutive annual dividend
increase for Hasbro. This dividend growth stock has managed to increase
distributions by 14.70% per year over the past decade. Yield: 2.70% J.B. Hunt
Transport Services, Inc. (NASDAQ: JBHT ), together with its subsidiaries,
operates as a surface transportation and delivery services company in North
America. The company raised its quarterly dividend by 8.33 % to 13 cents/share.
This marked the eight consecutive annual dividend increase for this dividend
achiever . This dividend growth stock has managed to increase distributions by
14.90% per year over the past five years. Yield: 1.30% All of the stocks
mentioned above have managed to increase distributions at a rate that is higher
than the rate of inflation. Before initiating a position in a prospective
dividend stock however, investors should evaluate the business, try to avoid
paying top dollar for it and ensure that distributions are sustainable. Full
Disclosure: Long ADM. For more information, visit DividendGrowthInvestor.com.
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