5 Steady Dividend Stocks With More Room To Grow – (WTR, UMBF, MGRC, GD, CBU)

Investors give utmost importance to earning the maximum return on their investments and maximizing their wealth. On the other hand, a company needs funds in order to finance its long-term growth. If a company distributes most of its earnings as dividend, then for business requirements and further expansion it will be dependent upon external financing such as issue of debt or new shares.

Therefore, a firm’s dividend policy affects both the long-term financing and the wealth of shareholders. Stable dividends maintain an optimistic impact on the market price of shares. Stable dividends reduce the chance of speculation in the market and investors wishing for a fixed rate of return will of course be attracted towards such stocks. What does stability of dividend means? It means that either a company declares a constant amount per shares or a constant percentage of net earnings. This article discusses 5 stocks that have boosted dividends for 20 consecutive years.

Aqua America Inc (NYSE:WTR) annual dividend yield stands at 2.47% and maintains a dividend payout ratio of 62.54%. The stock has a dividend of $0.66 annually. WTR shares traded in the range of $19.28 – $26.93 in the last 52 weeks. WTR through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States.

UMB Financial Corporation (NASDAQ:UMBF) a multi-bank holding company, provides banking and other financial services to commercial, retail, government, and correspondent bank customers. UMB Financial Corporation pays a dividend of $0.82 annually. The company has an annual dividend yield of 1.59% and has a dividend payout ratio at 26.54%. Shares of UMBF have been floating in the range of $30.49 – $52.61 in the last 52 weeks.

McGrath RentCorp (NASDAQ:MGRC) has an annual dividend of $0.94 while keeping its dividend yield at 3.54%. The company maintains a dividend payout ratio of 45.44%. Shares of MGRC have been trading in the range of $21.61 – $33.35 in last 52 weeks. MGRC a diversified business to business rental company, engages in the rental and sale of relocatable modular buildings.

General Dynamics Corporation (NYSE:GD) an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions. General Dynamics Corporation pays a dividend of $2.04 annually. The stock has an annual dividend yield of 3.19% and maintains a dividend payout ratio of 27.57%. Shares of GD have been floating in the range of $53.95 – $74.54 in the last 52 weeks.

Community Bank System, Inc (NYSE:CBU) shares have been trading in the range of $21.67 – $29.47 in the last 52 weeks. The company pays a dividend of $1.04 annually and has a dividend payout ratio of 50.78%. The stock maintains an annual dividend yield of 3.79%. CBU operates as the bank holding company for Community Bank, N.A. that provides various banking and financial services to retail, commercial, and municipal customers.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.