30 Massive Dividend Increases From the Past Year

The S&P 500's dividend stocks provided shareholders with an average payout boost of more than 8% in 2019. However, a number of outstanding companies announced far more substantial dividend increases - 20%, 30% or more. In a few cases, companies more than doubled their payouts overnight.

Companies often authorize significant upgrades in their regular dividends to attract new investors or stand out from industry competitors. While one-time influxes of cash will often go toward buybacks or one-time special dividends, firms that believe they can maintain heightened levels of profitability will return some of that money through larger regular payouts.

You'll notice that many of the past year's largest dividend increases came from the banking industry. That's in part because some large banks that were sitting on stockpiles of cash received permission from government regulators to distribute their excess capital to investors. Another major impetus for dividend growth was tax reform, which bumped up after-tax profits for many American companies, including banks.

Here, we look at 30 companies that stood out over the past year because of their outsize dividend increases. Each dividend growth stock listed here improved its regular payout by at least 20% in 2019, though in numerous cases, the dividend improved by considerably more. Let's take a look.

SEE ALSO: The Pros' Picks: 13 Top Dividend Stocks for 2020

Read more: https://www.kiplinger.com/slideshow/investing/T018-S001-30-massive-dividend-increases-from-the-past-year/index.html

5  Ways Your 401(k) Is a Tax Trap (and What to Do about It)

Just about every financial expert I know advises savers to contribute to their company's 401(k) plan -- at least enough to receive the employer's matching contribution.

I can't argue any differently.

That company match is free money -- a bonus from the boss -- so why not cash in if you can?

And, of course, the tax breaks are another bonus. Because the money comes out of your paycheck before taxes are calculated and compounds every year without a bill from Uncle Sam, investing in a defined contribution plan is bound to make April 15 more tolerable.

Not a bad deal, right?

Until you're ready to retire, that is. That's when a 401(k) (or 403(b) or traditional IRA) suddenly becomes the worst possible retirement plan, from a tax perspective, a saver could have. Here's why:

SEE ALSO: The 9 Types of People You'll Meet in Retirement

Written by Michael Reese, CFP®, the founder and principal of Centennial Advisors LLC, which has offices in Austin, Texas, and Traverse City, Mich. Michael's vision is to help American retirees "re-think" how they manage their financial portfolios during their retirement years.

Read more: https://www.kiplinger.com/slideshow/retirement/T001-S014-why-your-401k-is-a-tax-trap-and-what-you-should-do/index.html

Page 1 of 3

National Weather

Click on Map for Forecast

The Opinion Poll

advertisement

advertisement