The Dividend Triple Play

By | July 3, 2007

The Dividend Triple Play

Washington Mutual (NYSE: WM) had a growing dividend yield of 3.9% back at the beginning of 2000. Over the previous five years, the bank had demonstrated a commitment to rewarding shareholders by just about doubling its dividend.

That commitment has continued. The dividend has increased another 224% since 2000. If you had bought shares that day, you would be sitting on an effective 12.7% yield.

That’s right … 12.7%!

Cigarette maker Reynolds American (NYSE: RAI), mining company Southern Copper (NYSE: PCU), banking giant Bank of America (NYSE: BAC), and coal and natural gas concern Penn Virginia Resource Partners (NYSE: PVR) all are triple-play companies. They all have dividend yields higher than 4.5% and have grown operating earnings by 10% or better each of the past five years. They have also all at least doubled or nearly doubled both their dividends and stock price over the same time frame.

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