Top 5 Dividend Increases for March

Dividends are a powerful thing.
But not just any old dividend will do it. The best dividend-paying stocks are those that are consistently paying investors more.
The Vanguard Dividend Appreciation ETF (NYSEArca: VIG) focuses on consistent dividend-paying companies, as opposed to high-yield dividends. Since inception in the mid-2000s, the Vanguard ETF has posted a total return (dividends plus stock-price appreciation) of 90%. Meanwhile, the S&P 500 total return over the same period is 84%. It clearly pays to own the consistent dividend growers.
So while high dividends sound enticing, it is best to look for stocks that will keep paying you more. With that in mind, here are the top five dividend increases for March:

No. 1 March Dividend Increase: Reynolds American (NYSE: RAI)

Reynolds American just completed its merger with Lorillard last year, forming a North American tobacco powerhouse. The tobacco company is upping its quarterly dividend by 17% to $0.42 a share. That equates to a 3.3% dividend yield.
Reynolds American is also getting out in front of the e-cigarette trend. It now owns the two best-selling e-cigarette brands in the U.S.: Blu and Vuse. Together, the two make up more than half of U.S. e-cigarette sales.
Shares trade ex-dividend March 8.

No. 2 March Dividend Increase: General Motors (NYSE: GM)

General Motors shares are down 19% over the last year as weakness has hit the entire auto industry. However, General Motors is upping its quarterly dividend by close to 6% and will be paying $0.38 a share. This puts its dividend yield up to 5.2%. The stock is trading at just 5 times next year’s earnings estimates.
General Motors is already out in front of the smart car movement. It has 1 million connected vehicles and has fully embraced the tech movement, with high-speed 4G LTE data capability built into many of its vehicles.
Shares trade ex-dividend March 9.

No. 3 March Dividend Increase: American International Group (NYSE: AIG)

AIG is a giant in the insurance business and is offering a 2.5% dividend yield. This is the same company that activist investor Carl Icahn is trying to break up. AIG is upping its quarterly dividend by 14% this month. It will now be paying out $0.32 a share.
The company is trading at just 66% of book value and Icahn thinks that shares are worth more broken up. It remains to be seen how the breakup talk turns out, but in the meantime, AIG is planning to do a big share buyback over the next two years – worth upward of $25 billion – which could reduce shares outstanding by 40%.
AIG trades ex-dividend March 10.

No. 4 March Dividend Increase: Coca-Cola (NYSE: KO)

Coca-Cola is one of the best-known beverage stocks around. It’s upping its quarterly dividend by 6% to $0.35 a share.
Coca-Cola is paying a 3% dividend yield, which tops the PepsiCo (NYSE: PEP) dividend of 2.8%. Growth-wise, Coca-Cola is looking to expand into faster-growing markets like Africa. Coca-Cola is also investing in other beverages, such as energy drinks, iced teas and coffee.
However, Coca-Cola still takes a lot of heat for its soda business, with consumers shifting away from sugary beverages. Nonetheless, the company continues to innovate to meet changing consumer tastes, including rolling out low-calorie beverages and smaller package sizes.
Coca-Cola trades ex-dividend March 11.

No. 5 March Dividend Increase: Las Vegas Sands (NYSE: LVS)

Shares of Las Vegas Sands are down 11% for the last year and are off close to 45% since hitting five-year highs in 2014. But the company is upping its quarterly dividend by 11% this month to $0.72 cents a share. It’s now paying a dividend yield of 6%.
Trading at around 19 times next year’s earnings estimates, Las Vegas Sands is right in line with other major casino operators. However, its dividend yield is superior and it offers a double-digit return on invested capital.
And with its diversification, Las Vegas Sands is a better pick than other Macau operators, including Wynn Resorts (NASDAQ: WYNN). That’s because Las Vegas Sands doesn’t rely as heavily on high-end VIP gambling in Macau.
Shares of Las Vegas Sands trade ex-dividend March 18.
For more top dividend picks that have a proven track record of raising payouts year after year, click here.