3 Great Stocks Raising Their Dividends

First-quarter-earnings releases are well under way, and with them come announcements about dividend increases. In today's low-interest environment, investors are continuously seeking out stocks that give back. With that in mind, today I'll look at three strong companies that just announced they are boosting quarterly payouts.

1. Kinder Morgan (NYSE: KMI  ) and Kinder Morgan Energy Partners (UNKNOWN: KMP.DL  )
The Kinder Morgan family got off to a great start in the first quarter of 2013, and all its entities were able to increase their dividends. KMI bumped its quarterly payout 19% year over year to $0.38 per share and $1.52 annualized.

Management intends to continue to increase dividends as the year progresses so that the final realized annual payout is $1.57. KMP increased its distribution to $1.30 per unit, or $5.20 annualized. It is an increase of 8% over 2012's first-quarter payout. 

2. Enterprise Products Partners (NYSE: EPD  )
Enterprise recently announced it will increase its distribution for the 35th straight quarter. The partnership will pay out $0.67 per unit, which is $2.68 on an annualized basis. It is a 6.8% increase year over year. 

Enterprise has a distribution reinvestment program that allows unit holders to receive a 5% discount on additional units. It is an excellent benefit given Enterprise's history of distribution increases and 102% growth in its unit price over the past five years. 

Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand-new premium research report on the company.

3. Plains All American Pipeline (NYSE: PAA  )
Plains All American is bumping its distribution up 10% compared to a year ago. Its quarterly distribution will rise to $0.575 per unit, or $2.30 on an annualized basis. The partnership has increased its payout for 15 straight quarters, and 34 of the last 36 quarters.

Plains' distribution has a compound annual growth rate of 7.7%, and management is targeting 9%-10% distribution growth for 2013. So far, it is right on track.

More info on MLPs
With the exception of Kinder Morgan, all of the stocks listed above are structured as master limited partnerships. This business structure mandates high payouts to investors, but that's not all you need to know before you buy in. The Fool has some great resources for investors looking to broaden their portfolio to include these high-yielding investments.

Suggestions for future reading:

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2377050, ~/Articles/ArticleHandler.aspx, 10/1/2016 11:36:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 14 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:01 PM
EPD $27.63 Up +0.21 +0.77%
Enterprise Product… CAPS Rating: ****
KMI $23.13 Up +0.37 +1.63%
Kinder Morgan CAPS Rating: *****
KMP.DL $0.00 Down +0.00 +0.00%
Kinder Morgan Ener… CAPS Rating: *****
PAA $31.41 Up +0.34 +1.09%
Plains All America… CAPS Rating: ****