Top 5 Dividend Increases for September

Thanks to the recent tumble in the stock market, the average S&P 500 dividend yield is now over 2%. However, that’s a small consolation for those having suffered through a 5% fall in the index over the last two weeks.
Meanwhile, the month of September could offer some relief – at least in the sense that you can collect more money from the market. Month in and month out there are always stocks upping their dividends. Many fly under the radar and it looks like September will be no exception.
(For a smorgasbord of high yielders that pay all year long, click here.)
On the surface, September appears to be an unexciting month for dividend seekers. Sure, dividend champs like PepsiCo (NYSE: PEP), Merck & Co. (NYSE: MRK) and Coca-Cola (NYSE: KO) are all paying dividends in September, but they’re not actually upping their payments.
It’s the underrated stocks that are offering to pay you more. With that, here are the top five dividend increases for September:

No. 1 September Dividend Increase: American International Group (NYSE: AIG)

AIG is more than doubling its quarterly dividend payment next month. Specifically, it’s upping its dividend payment by 124% to 28 cents a share. That puts its pro forma dividend yield up to 1.8%, and it’s still only paying out 25% of its earnings via dividends.
After garnering a lot of negative press related to its government rescue in 2008, AIG has come roaring back, with shares up 75% over the last three years. Yet the company still trades at 80% of book value. Much of its issues are now resolved and its focus is on the steady insurance business, which will benefit from higher interest rates.
Shares trade ex-dividend Sept. 10.

No. 2 September Dividend Increase: Briggs & Stratton Corp. (NYSE: BGG)

Briggs & Stratton is upping its quarterly dividend by 8% to 13.5 cents a share next month. It’s offering a 2.7% dividend yield and has managed to up its dividend for three straight years.
This isn’t a sexy company. It makes engines for power equipment, generators, lawn mowers and snow blowers. But the stock has been flat over the last three years or so because of a string of poor acquisitions, leading to a compression of its returns on invested capital and various write-downs of asset carrying values. This is really a turnaround play that’s paying a modest dividend and buying back stock.
Shares trade ex-dividend Sept. 15.

No. 3 September Dividend Increase: Starwood Waypoint Residential Trust (NYSE: SWAY)

Starwood Waypoint is upping its dividend by 35% in September to 19 cents a share. It’s offering a solid 3.1% dividend yield. This real estate investment trust started paying a dividend in 2014, and this is its first ever dividend increase.
This REIT focuses on the single-family rental business. It’s down 9% over the last year on some interim occupancy issues. It’s a 2014 spinoff from Starwood Property Trust (NYSE: STWD) and has also been working through management changes. It’s now trading at 90% of book value.
Shares trade ex-dividend Sept. 28.

No. 4 September Dividend Increase: B&G Foods (NYSE: BGS)

B&G Foods offers one of the highest dividend yields on our list at 4.8%. It has upped its dividend for four straight years and next month is upping its quarterly dividend from 34 cents a share to 35 cents.
B&G Foods is a maker of various foods and has been known for making strategic acquisitions through the years. The stock is basically flat over the last year, as a recent string of buyouts proved to be less accretive to earnings than initially thought. However, after going more than 12 months without an acquisition, look for B&G to get back on the proverbial horse and continue being a consolidator of the food industry.
Shares trade ex-dividend Sept. 28.

No. 5 September Dividend Increase: VEREIT Inc. (NYSE: VER)

VEREIT has had a rough year, including an accounting scandal that led to the founder removing himself from the company. The company suspended its dividend and changed its name from American Realty Capital Properties. But things are slowly getting back on track for the real estate owner – and this starts with reinstating its dividend.
Its last dividend payment was in December 2014, when it paid 8.3 cents a share. Now it will be paying 13.75 cents a share starting next month. On a pro forma basis, VEREIT is offering a 6.6% dividend yield.
Beyond that, the accounting issues don’t appear to have had an impact on the company’s actual assets and core business of renting out properties under a triple-net lease setup.
Shares trade ex-dividend Sept. 28.
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