I talked before about Social Security and the pathetic $20 “raise” the average senior will receive next year.
While the data from the Social Security Administration is disappointing, I want to make sure you know that it’s not all bad news out there.
In fact, retirees who followed our research and invested in dividend-paying companies are receiving much higher income payments from their savings!
Thanks to the steady recovery in our economy and strength in key areas of the market, many companies are raising their dividends. And this gives investors a much bigger raise than what Social Security is paying.
In some cases, income is increasing by 30%… 60%… or more!
Today, we’re taking a quick look at five income plays that recently increased their dividends — giving you more income for your retirement.
Hopefully, you can add a few of these names to your investment account and start cashing the bigger dividend checks!
Dividend Hike #1: Income From 5G Cash Towers
The first dividend hike I want to show you today comes from Crown Castle International Corp. (CCI).
The company leases space on its 40,000 cell phone towers. And it charges tolls for networking companies that tap into CCI’s 80,000 miles of fiber optic cable.
As the rollout of 5G networks continues to drive more data online, CCI should profit from its part in keeping that data flowing.
This week, CCI announced that it’s increasing its quarterly dividend from $1.20 per share to $1.33. In other words, investors will be getting a 10.8% raise in the amount of income they receive from this play.
Not a bad bump in income, especially considering low interest rates and the pathetic 1.3% cost of living adjustment from the Social Security Administration!
If you buy shares of CCI today, the new dividend payment will give you a 3.25% yield. And keep in mind as CCI’s business continues to grow, we should see more dividend hikes in years to come!
Dividend Hike #2: Profits From Power
Our second dividend hike comes from one of the most reliable industries in modern history — electric utility!
Investors turned their nose up at utility stocks for years because they were seen as boring. But in today’s low interest rate environment, utilities are becoming popular because of the reliable income they generate.
Yesterday, American Electric Power Co. (AEP) announced it’s increasing its quarterly dividend by 5.7%. The new dividend is $0.74 per share, giving investors a very attractive 3.3% yield on their investment.
I love utility stocks for income because these companies make profits in both good times and bad.
Think about it…
Even when individuals and businesses take an income cut, they’re still going to prioritize paying their electric bill.
In addition to the 3.3% yield from this stock, I also expect you to make profits from shares of AEP trading higher. As investors look for more ways to generate income, they’ll naturally be drawn to the higher dividend payment at AEP.
So more buy orders will naturally drive the stock price higher, while you continue to collect 3.3% in dividend payments.
What’s not to love?
Dividend Hike #3: Outdoor Leisure Is Where It’s At!
It’s no secret that outdoor activities have been popular with consumers this year. Many of us are looking for ways to get outside with the risk of spreading coronavirus in enclosed spaces.
This trend naturally helps recreational companies like Brunswick Corp. (BC).
BC makes all kinds of boats and boating equipment, which have been wildly popular with consumers this year.
Wall Street analysts expect BC to generate $4.17 per share in profits for 2020.
And as the company rolls out more watercraft and equipment for existing customers next year, BC’s profits should grow by 25%.
The company just announced a 12.5% increase to its dividend payment, offering investors $0.27 per quarter.
If you invest in BC today, you’ll be locking in a yield of about 1.66%. And while that level of income may not be impressive on the surface, it’s certainly higher than what you’ll get from just about any savings account.
Plus, investors still have the opportunity to grow their wealth as the stock trades higher. And I expect BC to continue to increase its dividend over time as profits grow.
Dividend Hike #4: Income From Artificial Intelligence
Today’s technology continues to advance at a lightning-fast pace. And companies at the cutting edge of new applications like self-driving cars, artificial intelligence and machine learning are making big profits.
One of those companies is Infosys Ltd. (INFY). The consulting company helps businesses tap into new opportunities made available by the latest tech advances.
I love INFY because the company has customers in many different industries — which makes the overall business much more stable.
Just this week, the management team at INFY announced a 32% increase in the company’s dividend. Similar to shares of BC, investors are now receiving a 1.6% yield on their money.
And in addition to the higher dividend payment, INFY should benefit from a strong rebound in the economy and new applications for advanced technology.
Dividend Hike #5: It’s a Red Hot Housing Market!
Our final dividend hike this week comes from one of my favorite areas of the economy right now — the housing market!
Low interest rates have made mortgages more affordable for home buyers. Meanwhile, there simply aren’t enough new homes to meet a growing level of demand.
All of this favors established home builder companies like KB Homes (KBH).
Selling more homes at higher prices has kicked home builder profits into high gear. And now, investors are getting paid bigger dividend payments fueled by these profits.
This week, KBH announced a whopping 66.7% increase in its quarterly dividend. That’s exactly the kind of dividend hike we would expect to see from one of the strongest areas in the economy right now!
All five of these companies have strong fundamental businesses that are growing profits.
They’ve also all agreed to pay more of these profits to investors through bigger dividend payments.
And all five of these stocks deserve consideration in your retirement account to help grow your wealth and income.