3 Big Names, 3 Big Dividend Increases
Much has been written in the media about the “record numbers” of companies cutting or failing to raise their dividends. Even with a large number of companies not increasing their dividends this year, there is still an abundance of companies that have. For those companies that fail to increase their dividends, it is one less stock dividend investors have to track and analyze.
Below are three companies that recently increased their cash dividends:
Reynolds American (RAI) was formed as a result of the the mid-2004 merger of R.J. Reynolds and Brown & Williamson. Tuesday, the company increased its quarterly dividend 5.9% to $0.90/share. The dividend is payable on Jan. 4, 2010, to shareholders of record on Dec. 10, 2009. The ex-dividend date is Dec. 8. The current yield based on the new dividend is 7.7%.
ConocoPhillips (COP) is the the fourth largest integrated oil company in the world. Wednesday, the company raised its quarterly dividend 6% to $0.50 per share. The dividend is payable Dec. 1, 2009, to stockholders of record at the close of business Oct. 30, 2009. The current yield based on the new dividend is 4.02%.
In addition, the company also announced its plan to sell $10B in assets over next 2 years. Jim Mulva, chairman and chief executive officer stated:
These actions are consistent with our objectives of creating shareholder value and improving financial flexibility while pursuing our long-term strategic initiatives. This plan capitalizes on our large resource base and our strong portfolio of projects, while providing flexibility for potential changes in business conditions. We will replace reserves and grow production from a reduced, but more strategic, asset base.
RPM International Inc. (RPM) engages in the manufacture, marketing, and sale of various specialty chemical products to industrial and consumer markets worldwide. Thursday, the company declared quarterly cash dividend of $0.205/share. The dividend is payable on October 30, 2009, to stockholders of record as of October 19, 2009. The ex-dividend date is October 15, 2009. The dividend yield is 4.4%. RPM is a Dividend Achiever and has increased its dividend for the last 36 years. The current yield based on the new dividend is 4.4%. [Analysis]
The list of stocks that haven’t missed a dividend increase in the last 10 years continues to shrink, but there are still plenty to be found to satisfy this dividend investor. For a list of stocks with a long string of consecutive dividend increases, see this list.
Full Disclosure: No position in the aforementioned stocks. See a list of all my income holdings here.
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Just wondering how you select which stocks you follow/analyze. I understand you pick the ones with longtime dividend track records, but then you also don’t seem to track ALL of those (e.g. MO). So how do you decide which you do want to track?
Thanks!
Roger: I start with my “Stock Ideas” list and select ones that I think may have promise. As a matter of personal conviction, I don’t own “sin” stocks.
Best Wishes,
D4L