What should I buy right now to fight against hot inflation? These 3 dividend stocks could give shareholders a sizeable pay raise — as soon as next month
It might be tempting to jump out of stocks completely, but here’s the reality: No one knows for sure what the market will do next.
The good news? You don’t have to time the market to make money in stocks. There are companies that provide cash returns to investors through highly reliable dividends.
Some of them even have the strength to consistently increase their payout year in and year out. For dividend investors, it’s like getting a pay raise — something that’s much-needed with inflation at 40-year highs.
Here are three companies that, in all likelihood, will hike their dividends in June.
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First Bancorp (FNLC)
Compared to the financial juggernauts on Wall Street, First Bancorp is a rather small institution. The bank has $2.5 billion in assets and provides commercial and retail banking services through its 18 locations in mid-coast and eastern Maine.
But there is a good reason to check out this under-the-radar stock: dividend growth.
Five years ago, the bank was paying quarterly dividends of 23 cents per share. Today, it pays 32 cents per share — marking a payout increase of 39%. The stock currently yields 4.3%.
The company has a solid business to back its generous shareholder returns. In Q1 of 2022, First Bancorp’s net income grew 8.8% year over year to $9.7 million. And its first-quarter dividend represented just 36% of its earnings per share for the period.
A conservative payout ratio leaves a margin of safety and room for future dividend hikes.
Considering that management last raised the company’s dividend in June 2021, they might want to continue the streak this year, too.
Kroger (KR)
In an era where physical stores are under serious threat from online merchants, Kroger remains a brick-and-mortar beast.
Shares of the supermarket giant are up 16% in 2022, in stark contrast to the S&P 500 Index’s…
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