These 20 stocks have ample dividend payouts between 8.16% and 15.74%. However, the goal was not just to focus on a large dividend payouts now. Rather, it was about companies that have a history of increasing their dividend yield at a steady pace over the past several years.

Why?

This pattern of dividend increases in the past is typically a sign that they will continue that healthy habit in the future. This increases the reliability of the income stream which usually attracts more investors which also bolsters the capital appreciation of shares. The sum total is a better expected total rate of return.

Shell Midstream Partners (SHLX) is the posture child for this habit of healthy dividend increases at the rate of 49.4% per year. In fact, SHLX has raised their quarterly dividend more than 19 times in a row. Shell Midstream is certainly is worthy of consideration in any portfolio desiring attractive income.

Sprague Resources (SRLP) is the right choice for those that just want to cut to the front of the line to find the stock with the top dividend yield. SRLP provides that in spades with their current 15.74% yield. They icing on the cake is the nearly 10% average annual increase in the dividend.

However, there is a touch more risk with SRLP. First, because it has not increased the dividend since May 2018. This may be a sign of slowing dividend increases. But secondly, Sprague is one of the smallest stocks on the list at only $386 market cap. The lack of size can sometimes create a little less stability in cash flow and thus dividend payments.

Tallgrass Energy (TGE) comes in second place for annual increase in dividend growth at 38%.  TGE is also the largest cap stock on the list to offer more stability then perhaps would be found with a smaller play like Sprague.

Just like SHLX, Tallgrass has a long, long history of quarterly dividend increases. So for as nice as the current 9.95% dividend yield appears, quite likely TGE will continue to increase it into the future.

OK…you get the idea. These are not just your ordinary income stocks. They have been specifically selected to also provide proof of consistent dividend increases. The full criteria for this stock search is shared at the bottom of the article. For now, just dive right in with the list of 20 stocks below.

Be sure to click on the ticker for each to research them in greater depth on StockNews.com. There you will find the history of dividend payments as well as all 5 aspects of the reviewing a stocks with the POWR Rating system. Enjoy!

Want more great stock picks? Then check out these additional resources:

High Dividend Yield Stock Screener

POWR Ratings Full Strong Buys List

Reitmeister Total Return portfolio

Research Method for Top 20 High Yield Stocks for 2020:

2,314 stocks with a POWR Ratings of A and B.  Always need to start the party with our proprietary ratings model that finds stocks with the best momentum and timeliness. Typically the strength in price action is a reflection of positive fundamental catalysts at play.

1,528 currently have a dividend yield.

87 of those stocks have 8% dividend yield or higher. So this single criteria quickly got rid of 95% of the potential candidates.

35 of those stocks had grown dividend payments by greater than 0% per year for the past 5 years. Meaning that many of them actually saw stable or declining dividends over time which is generally a sign of a poor investment.

20 stocks with 8% dividend yield and greater than 5% average annual increase in dividend yield the past 5 years. Again, this measure was the key attribute for this stock search and believe it will point to the healthiest dividend stock investments in the coming year.

SHLX shares were trading at $20.04 per share on Monday afternoon, up $0.34 (+1.73%). Year-to-date, SHLX has gained 32.72%, versus a 30.44% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

More Resources for the Stocks in this Article