Summary

• You can’t spend earnings. This may seem like an odd or incorrect statement, but it is correct.
• Fraud and manipulation of financial statements can make earnings look impressive, but the dividend that arrives in your brokerage account can't be faked.
• An increasing cash dividend keeps pressure on management to generate cash.
• Here are several stocks where management recently met the challenge by raising their cash dividends.

You can't spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation, financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.

An increasing cash dividend keeps pressure on management to ensure the company is well run. If there are too many missteps, eventually the dividend will slip. Here are several stocks where management recently met the challenge by raising their cash dividends:

ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. July 16th the company increased its quarterly dividend 1.4% to $0.74 per share. The dividend is payable September 1, 2015 to stockholders of record on July 27, 2015, with an ex-dividend date of July 23, 2015. The yield based on the new payout is 5.1%.

The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food products worldwide. July 16th the company increased its quarterly dividend 4.7% to $0.67 per share. The dividend is payable September 1, 2015 to stockholders of record on August 14, 2015, with an ex-dividend date of August 12, 2015. The yield based on the new payout is 2.5%.

Kinder Morgan, Inc. (NYSE:KMI) operates as an energy infrastructure and energy company in North America. July 15th the company increased its quarterly dividend 2.1% to $0.49 per share. The dividend is payable August 14, 2015 to stockholders of record on July 31, 2015, with an ex-dividend date of July 29, 2015. The yield based on the new payout is 5.2%.

Omega Healthcare Investors, Inc. (NYSE:OHI) is a real estate investment firm investing in healthcare facilities, primarily in long-term healthcare facilities. July 15th the company increased its quarterly dividend 1.9% to $0.55 per share. The dividend is payable August 17, 2015 to stockholders of record on July 31, 2015, with an ex-dividend date of July 29, 2015. The yield based on the new payout is 6.2%.

Nordic American Tankers Limited (NYSE:NAT), a tanker company, engages in acquiring and chartering double-hull tankers. July 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable August 12, 2015 to stockholders of record on July 29, 2015, with an ex-dividend date of July 27, 2015. The yield based on the new payout is 10.1%.

National Retail Properties, Inc. (NYSE:NNN) is a publicly owned equity real estate investment trust that acquires, owns, manages, and develops retail properties in the United States. July 15th the company increased its quarterly dividend 3.6% to $0.435 per share. The dividend is payable August 14, 2015 to stockholders of record on July 31, 2015, with an ex-dividend date of July 29, 2015. The yield based on the new payout is 4.8%.

KLA-Tencor Corporation (NASDAQ:KLAC) designs, manufactures, and markets process control and yield management solutions worldwide. July 14th the company increased its quarterly dividend 4% to $0.52 per share. This increase is expected to take effect beginning with KLA-Tencor's quarterly dividend to be declared in August 2015. The yield based on the new payout is 3.7%.

Select Income REIT (NYSE:SIR), a real estate investment trust (REIT), primarily owns and invests in single tenant and net leased properties. July 13th the company increased its quarterly dividend 45% to $0.50 per share. The dividend is payable August 20, 2015 to stockholders of record on July 24, 2015, with an ex-dividend date of July 22, 2015. The yield based on the new payout is 9.2%.

Ryder System, Inc. (NYSE:R) provides commercial fleet management and supply chain solutions to small businesses and large enterprises worldwide. July 10th the company increased its quarterly dividend 11% to $0.41 per share. The dividend is payable September 18, 2015 to stockholders of record on August 24, 2015, with an ex-dividend date of August 20, 2015. The yield based on the new payout is 1.8%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.