At the same time, Lockheed Martin Corporation (NYSE:LMT) increased its full-year 2013 outlook for operating profit, EPS, and cash from operations. This will allow Lockheed to continue its track record of increasing dividends. Last fall, Lockheed raised its dividend by 15% after a 33% increase the year prior. All told, Lockheed has provided ten consecutive double-digit percentage increases in its shareholder payout.
On the subject of strong dividends, no discussion is complete without mentioning hamburger king McDonald’s Corporation (NYSE:MCD). McDonald’s Corporation (NYSE:MCD) is simply one of the most shareholder-friendly stocks in existence. McDonald’s Corporation (NYSE:MCD) has increased its dividend every year since its very first dividend in 1976, and through a combination of dividend payments and share buybacks, returns billions to investors every year.
Despite the slow-growing economy, McDonald’s Corporation (NYSE:MCD) remains resilient. Its recent quarterly net income rose 4% on the strength of a 1% increase in global same-store sales.
McDonald’s Corporation (NYSE:MCD) pays a 3.25% dividend yield at recent prices, and will surely increase its dividend at some point in the next couple months.
Ensure your financial future with a Roth IRA
If you own dividend stocks in a taxable account, you’ll have to fork over 15% of those distributions in taxes every year. And your tax bill could be even higher, depending on your income level.
The Roth IRA quite simply offers one of the best ways to enjoy years of tax-free returns. Moreover, if you fill your Roth with high-quality dividend stocks such as these, you’ll see your portfolio rise over time, thanks to the magic of compounding.
These stocks provide strong dividend yields that handily exceed the yield on the broader market, and have great track records of increasing their payouts regularly. For investors looking to save for retirement and also lessen the blow of taxes, do yourself a huge favor by opening a Roth IRA, and fill it with great stocks like these. I own Lockheed Martin and McDonald’s Corporation (NYSE:MCD) in a Roth IRA, and plan to reinvest those hefty dividends for many years to come, and I’d urge all Foolish investors to join me.
The article Why You Should Open a Roth IRA, and 3 Stocks to Fill it With originally appeared on Fool.com and is written by Robert Ciura.
Robert Ciura owns shares of McDonald’s and Lockheed Martin. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of Lockheed Martin and McDonald’s. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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