10 Stocks Using Real Cash To Pay Higher Dividends

On June 24, 2011, Dividend Growth Stocks published an article on their blog, www.dividend-growth-stocks.com discussing 10 stocks using real cash to pay higher dividends. Out of the 10 stocks mentioned, two are current holdings in our securities portfolio. The following is an excerpt of the article:

“You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.

An increasing cash dividend keeps pressure on management to ensure the company is well run. If there are too many missteps, eventually the dividend will slip. Here are several stocks where management recently met the challenge by raising their cash dividends:

Realty Income Corporation (O) engages in the acquisition and ownership of commercial retail real estate properties in the United States. June 21st the company increased its monthly dividend 0.2% to $0.144875 per share. The dividend is payable on July 15, 2011 to shareholders of record as of July 1, 2011. This is the 55th consecutive quarterly increase and the 62nd dividend increase since Realty Income went public in 1994. The yield based on the new payout is 5.2%.

Annaly Capital Management, Inc. (NLY), a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. June 20th the company increased its quarterly dividend 5% to $0.65 per share. This dividend is payable July 28, 2011 to common shareholders of record on June 30, 2011. The ex-dividend date is June 28, 2011. The yield based on the new payout is 13.9%.
Selecting stocks with increasing dividends is critical for an income growth strategy.”

As you can see Realty Income Corporation (O) and Annaly Capital Management, Inc. (NLY) are performing well and are ideal for MONOPOLY I, LLC’s income growth strategy.