5 Stocks Boosting Dividends in January

Buying shares in any of these five stocks now, before they announce their regular dividend increases,  gives you a better chance of earning the dividend while also seeing a nice return on the share price in a short period of time. You must act quickly, the first announcement is coming up soon. 

Since the election, real estate investment trust (REIT) share prices have moved significantly higher along with a large portion of the stock market. To keep that momentum going into the new year, consider buying into those REITs that should announce higher dividend rates in the first month of 2017.

Each month, I like to list those real estate investment trusts (REITs) that should announce higher dividend rates in the upcoming months. This knowledge can give you a jump start on the rest of investing public, who will be surprised when the positive news is actually announced.

I maintain a database of about 130 REITs. With it, I track current yields, dividend growth rates, and the timing of the new dividend rate announcements. The majority of REITs announce a new dividend rate once a year and then pay that rate for the next four quarters. Currently, about 90 REITs in my database have recent and ongoing histories of dividend growth. Higher dividend announcements will come from different REIT companies within this group during almost every month of the year. With the potential of a Fed interest rate hike, the prospect of higher dividend payments in January will help to offset any share price disruptions that result from the Federal Reserve Board’s announcement.

Higher dividend announcements will come from different REIT companies within this group during almost every month of the year. With the potential of a Fed interest rate hike, the prospect of higher dividend payments in January will help to offset any share price disruptions that result from the Federal Reserve Board’s announcement.

My list shows five companies that historically announce higher dividends in January, and should do so again this year. Investors will start earning the higher payouts in the new year. But remember, you want to buy shares before the dividend announcement to get the benefit of the share price bump caused by the positive news. Here is the list of REITs to consider:

aivApartment Investment and Management (NYSE: AIV) is a mid-cap sized REIT that owns and operates about 200 apartment communities. About 40% of the company’s properties are located in coastal California, with the balance spread across major U.S. metropolitan areas. Last year, AIV increased its dividend by 13%. Cash flow growth has been slower in 2016, and I forecast a 4% to 5% dividend increase in January. The new dividend rate announcement will come out in late January, with a mid-February ex-dividend date and payment at the end of February. AIV yields 3.1%.

Last year, AIV increased its dividend by 13%. Cash flow growth has been slower in 2016, and I forecast a 4% to 5% dividend increase in January. The new dividend rate announcement will come out in late January, with a mid-February ex-dividend date and payment at the end of February. AIV yields 3.1%.

cptCamden Property Trust (NYSE: CPT) also owns and operates apartment communities. The company owns about 150 properties strung across the southern sunbelt of the U.S. Camden Property Trust has increased its dividend for six consecutive years. The quarterly payout has typically been boosted by 6% to 7%. Revenue and cash flow growth in the apartment sector

Revenue and cash flow growth in the apartment sector has been slower across the board in 2016. I expect a 3% to 4% higher dividend to be announced by Camden Property in January. The announcement will come at the end of January, with an end of March ex-dividend date and a mid-April payment of the new dividend rate. CPT goes ex-dividend on December 14 for the dividend to be paid in January. The stock currently yields 3.8%.

SEE ALSO: Tim Plaehn’s ‘Top Dividend Stocks to Own in 2017’

ddrDDR Corp. (NYSE: DDR) acquires, develops, owns and operates “power center” type shopping centers. The company has been selling off its lower quality centers to focus on retaining and improving the most profitable ones. DDR currently owns 168 properties. The quarterly dividend was increased by 10% in January 2016, and I am looking for a high single digits increase in 2017. The new dividend rate will be announced in early January. Ex-dividend will occur in early March with the payment coming in April. DDR goes ex-dividend on December 13 for the dividend to be paid on January 5. The stock currently yields 4.8%.

The new dividend rate will be announced in early January. Ex-dividend will occur in early March with the payment coming in April. DDR goes ex-dividend on December 13 for the dividend to be paid on January 5. The stock currently yields 4.8%.

eprEPR Properties (NYSE: EPR) focuses its real estate investments in three different business sectors. The primary sector is the ownership and triple-net leasing of entertainment complexes and multiplex theaters. The second sector is the ownership of golf and ski recreation centers, which are also triple net leased. The third sector is the construction, ownership, and leasing of private and charter schools. EPR pays monthly

EPR pays monthly dividend, and has grown the dividend rate by an average of 7% per year for the last six years. The new dividend rate is announced in mid-January, with an end of January record date and mid-February payment. EPR currently yields 5.4%.

hcpHCP, Inc. (NYSE: HCP) is a large cap healthcare sector REIT. In early November, HCP spun-off its skilled nursing facilities into a new, publicly traded company. When these types of spin-offs occur, the dividend rate gets effectively divided between the old and new companies. On November 1st, HCP announced its next dividend payment would be 37% lower than the rate being paid before the spin-off.

HCP is the only REIT that is also a Dividend Aristocrat, and the company has increased its dividend for 31 consecutive years. Historically, the new, higher dividend rate was announced in January with the first payment of the new dividend rate in February. Post spin-off, it is difficult to predict if HCP will follow its historical pattern. The stock currently yields 4.9%.

Stocks like the five above that have high current yields and the potential for dividend growth are an integral part of the income strategy for my newsletter, The Dividend Hunter. This is where I recommend the market’s strongest, most stable high-yield dividend payers, and there are 20 high-yield stocks currently available through my Monthly Dividend Paycheck Calendar system for generating a high monthly income stream from the market’s most stable high-yield stocks.

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About Tim Plaehn

Tim Plaehn is the lead investment research analyst for income and dividend investing at Investors Alley. He is the editor for The Dividend Hunter, an investment advisory delivering income investments with double digit growth in share price and dividend payments, and 30 Day Dividends, a specialty income service that takes advantage of opportunities for relatively fast, attractive profits around potential dividend payouts. Prior to his work with Investors Alley, Tim was a stock broker, a Certified Financial Planner, and F-16 Fighter pilot and instructor with the United States Air Force. During his time in the service he was stationed at various military locations in the U.S., Europe, and Asia. Tim graduated from the United States Air Force Academy with a degree in mathematics. Learn about Tim's new investment strategy for collecting income from the market each and every month without the use of options, futures, forex, covered calls, or risky trading strategies.