Dividends Value » AFG

9 Dividend Stocks Enriching Their Shareholders *

D4L — Fri, 08 Oct 2010 07:30:48 +0000

In one form or another, I get the this question, “What do you think of the market? Where’s it headed?” Normally, I politely respond as expected, but occasionally I will startle the person with a reply like, “I don’t know. For me it really doesn’t matter much.” My investing goals are not defined by movements in the market. Instead of looking at the market and its direction, dividend investors should focus on quality, price and ultimate value of individual stocks.

Below are several companies enriching their shareholders by raising their cash dividends:

MFA Financial (MFA) is a real estate investment trust that invests in ARM-MBS, which are primarily secured by pools of mortgages on single family residences. October 1st the trust increased its quarterly quarterly dividend 18% to $0.225/share. The dividend is payable on October 29, 2010 to stockholders of record on October 12, 2010. The ex-dividend date is October 7, 2010. The yield based on the new payout is 11.39%.

American Financial Group (AFG) provides specialty and multi-line property and casualty insurance, and sells tax-deferred annuities. October 1st the company raised its quarterly dividend 18% to $0.1625/share. The dividend is payable on October 25, 2010 to holders of record on October 15, 2010. The ex-dividend date is October 13, 2010. The yield based on the new payout is 2.15%.

Thor Industries (THO) is engaged in manufacturing and selling a range of recreation vehicles, and small and mid-size buses. October 1st the company increased its quarterly dividend 43% to $0.10/share. The dividend is payable on October 29, 2010 to shareholders of record on October 18, 2010. The ex-dividend date is October 14, 2010. The yield based on the new payout is 1.15%.

WD-40 Company (WDFC) produces WD-40 and 3-IN-ONE Oil lubricants; Lava and Solvol heavy-duty hand cleaners; and X-14, 2000 Flushes, Carpet Fresh and Spot Shot household cleaning products. October 1st the company raised its quarterly dividend 8% to $0.27/share. The yield based on the new payout is 2.76%.

Northwest Natural Gas (NWN) provides service to some 590,000 residential, 61,000 commercial and 900 industrial sales customers in Oregon and southwestern Washington. October 4th the company increased its quarterly dividend 5% to $0.435/share. The dividend will be paid November 15, 2010, to shareholders of record on October 29, 2010. The ex-dividend date is October 27, 2010. NWN is a Dividend Achiever and has raised its dividend for 38 consecutive years. The yield based on the new payout is 3.59%.

Senior Housing Properties (SNH) is a real estate investment trust (REIT) with 298 properties located in 35 states and Washington, D.C. October 4th the trust raised its quarterly dividend to $0.37/share. The dividend is payable on Oct. 15 to shareholders of record on Nov. 12. The ex-dividend date is Nov. 10. The yield based on the new payout is 6.11%.

West Pharmaceutical (WST) manufactures components and systems for injectable drug delivery and plastic packaging and delivery system components. October 4th the company increased its quarterly dividend 6.25% to $0.17/share. The dividend will be paid on November 3, 2010 to shareholders of record on October 20, 2010. WST is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 1.99%.

Collectors Universe (CLCT) provides value-added grading, authentication and information services and products to dealers and collectors of high-end collectibles. October 6th the company raised its quarterly dividend 8% to $0.325/share. The dividend is payable on November 19, 2010 to stockholders of record on November 5, 2010. The ex-dividend date is November 1, 2010. The yield based on the new payout is 9.3%.

Artesian Resources (ARTNA) distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers in the state of Delaware. October 6th the company increased its quarterly dividend to $0.1892/share. The dividend is payable on November 19, 2010 to shareholders of record at the close of business on November 8, 2010. The ex-dividend date is November 4, 2010. The yield based on the new payout is 4%.

RPM International Inc. (RPM) makes specialty coatings and products for the structural waterproofing and corrosion control markets, as well as products for the consumer, do-it-yourself, and hobby markets. October 7th the company raised its quarterly dividend 2.4% to $0.21/share. The dividend is payable on October 29, 2010, to stockholders of record as of October 18, 2010. The ex-dividend date is October 14, 2010. RPM is a Dividend Achiever and has raised its dividend for 38 consecutive years. The yield based on the new payout is 4.1%.

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.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

(Photo Credit)

http://dividendsvalue.com/4783/3-high-yield-telecom-dividend-stocks/

HCC Insurance Holdings Inc. (HCC) Dividend Stock Analysis *

D4L — Mon, 04 Oct 2010 07:30:25 +0000

This article originally appeared on The DIV-Net September 27, 2010.

Linked here is a detailed quantitative analysis of HCC Insurance Holdings Inc. (HCC). Below are some highlights from the above linked analysis:

Company Description: HCC Insurance Holdings Inc. is a multi-line insurer specializes in aviation, marine, medical stop-loss, offshore energy and property and casualty insurance in the U.S. and the U.K.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:

1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number

HCC is trading at a discount to 1.), 3.) and 4.) above. The stock is trading at a 9.7% discount to its calculated fair value of $28.99. HCC earned a Star in this section since it is trading at a fair value.

Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%

HCC earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. HCC earned a Star for having an acceptable score in at least two of the four Key Metrics measured. Rolling 4-yr Div. > 15% means that dividends grew on average in excess of 15% for each consecutive 4 year period over the last 10 years (2000-2003, 2001-2004, 2002-2005, etc.) I consider this a key metric since dividends will double every 5 years if they grow by 15%. The company has paid a cash dividend to shareholders every year since 1996 and has increased its dividend payments for 14 consecutive years.

Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:

1. NPV MMA Diff.
2. Years to > MMA

HCC earned a Star in this section for its NPV MMA Diff. of the $2,883. This amount is in excess of the $2,100 target I look for in a stock that has increased dividends as long as HCC has. If HCC grows its dividend at 15.0% per year, it will take 5 years to equal a MMA yielding an estimated 20-year average rate of 3.71%.

Memberships and Peers: HCC is a member of the Broad Dividend Achievers™ Index. HCC’s peer group includes: American Financial Group Inc. (AFG) with a 1.8% yield, American National Insurance Co. (ANAT) with a 4.1% yield, Assurant Inc. (AIZ) with a 1.6% yield and Unitrin Inc. (UTR) with a 3.5% yield.

Conclusion: HCC earned one Star in the Fair Value section, earned three Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a total of five Stars. This quantitatively ranks HCC as a 5 Star-Strong Buy.

Using my D4L-PreScreen.xls model, I determined the share price would need to increase to $29.56 before HCC’s NPV MMA Differential decreased to the $2,100 minimum that I look for in a stock with 14 years of consecutive dividend increases. At that price the stock would yield 1.89%.

Resetting the D4L-PreScreen.xls model and solving for the dividend growth rate needed to generate the target $2,100 NPV MMA Differential, the calculated rate is 13.9%. This dividend growth rate is below the 15% used in this analysis, thus providing a margin of safety. HCC has a risk rating of 1.50 which classifies it as a low risk stock.

HCC’s diverse business mix along with its underwriting discipline have positioned it well in an environment that has left many other insurers struggling. The company’s investment portfolio reflects management’s conservative bias and a culture that rewards profitability rather than growth. With very little debt and a low free cash flow payout, HCC’s financials are strong. The stock is favorably priced to my calculated fair value of $28.99. However, its yield of 2.14% is below by current minimum, so for now I will stay on the sidelines. For additional information, including the stock’s dividend history, please refer to its data page.

Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Full Disclosure: At the time of this writing, I held no position in HCC (0.0% of my Income Portfolio). See a list of all my income holdings here.

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8 Dividend Stock Delivering Good News *

D4L — Fri, 20 Aug 2010 07:30:28 +0000

If you closely follow the daily financial news as presented by the mainstream media, it is easy become jaded and start believing that there isn’t any good news out there. Don’t be confused by the noise. There are still many great companies committed to generating superior returns and rewarding their shareholder by increasing cash dividends.

Below are several companies that have recently raised their cash dividends:

Cincinnati Financial (CINF) markets primarily property and casualty coverage. It also conducts life insurance and asset management operations. August 16, 2010 the company increased its quarterly dividend to $0.40/share. The dividend is payable October 15, 2010, to shareholders of record as of September 22, 2010. CINF is a Dividend Aristocrat and has raised its dividend for 50 consecutive years. The yield based on the new payout is 5.85%.

Autoliv (ALV) develops, manufactures and supplies automotive safety systems to the automotive industry; and designs, develops and manufactures airbag modules. August 17th the company raised its quarterly dividend 16.7% to $0.35/share. The dividend is payable on Thursday, December 9, 2010 to shareholders of record on the close of business on Thursday, November 4, 2010. The ex-dividend will be Tuesday November 2, 2010. The yield based on the new payout is 2.48%.

Nordson (NDSN) manufactures equipment used for precision dispensing, testing and inspection, and surface preparation and curing. August 17th the company increased its quarterly dividend to $0.21/share. The dividend is payable on Sept. 14 to shareholders of record on Aug. 31. The ex-dividend date is Aug. 27. NDSN is a Dividend Achiever and has raised its dividend for 47 consecutive years. The yield based on the new payout is 1.27%.

TrustCo Bank (TRST) operates 132 community banking offices and 134 ATMs throughout its market area. August 17th the company raised its quarterly dividend 5% to $0.066/share. The dividend is payable on Oct. 1 to shareholders of record on Sept. 3. The ex-dividend date is Sept. 1. The yield based on the new payout is 4.74%.

Lawson Products (LAWS) is a marketer of systems, services and products to the industrial, commercial, institutional, and governmental maintenance repair and operations (MRO) marketplace. August 17th the company increased its quarterly dividend 33% to $0.08/share. The dividend is payable October 12, 2010 to stockholders of record on September 28, 2010. The ex-dividend date is September 26, 2010. The yield based on the new payout is 2.10%.

First Capital (FCAP) owns and operates First Harrison Bank, which provides banking services through 13 offices in Indiana. August 19th the company raised its quarterly dividend 5.6% to $0.19/share. The dividend is payable on September 30, 2010 to shareholders of record as of September 16, 2010. The ex-dividend date is September 14, 2010. The yield based on the new payout is 5.03%.

American Financial Group (AFG) provides specialty and multi-line property and casualty insurance, and sells tax-deferred annuities. August 19th the company increased its quarterly dividend 18% to $0.1625/share. The yield based on the new payout is 2.24%.

Getty Realty Corp. (GTY) specializes in the ownership and leasing of retail motor fuel and convenience store properties and petroleum distribution terminals in the U.S. August 19th the company raised its quarterly dividend 1.1% to $0.48/share. The dividend is payable on October 14, 2010 to holders of record on September 30, 2010. The ex-dividend date is September 28, 2010. GTY is a Dividend Achiever and has raised its dividend for 14 consecutive years. The yield based on the new payout is 7.95%.

Full Disclosure: Long CINF. See a list of all my income holdings here.

(Photo Credit)

10 Stocks Taking Their Dividends Up A Notch *

D4L — Fri, 30 Oct 2009 10:30:55 +0000

Throughout history there have always been great companies that stand head-and-shoulders above their peers and the competition. They are loved by their shareholders, hated by the competition and known by all. Just as all great companies have have something in common, great dividend companies also have something in common.

All great dividend companies have at least one characteristic in common – they consistently raise their dividends each year. Below are several companies stepping up with higher cash dividends:

SouthWest Water (SWWC) provides a range of services, including water production, treatment and distribution; wastewater collection and treatment; and utility billing and collection. October 23rd the company doubled its dividend to $0.05/share. The dividend is payable on November 20, 2009, to stockholders of record on November 4, 2009. The yield based on the new payout is 3.51%.

Torchmark (TMK) a financial services company that derives most of its earnings from life and health insurance operations. October 23rd the company raised its quarterly dividend to $0.15/share The dividend will be paid on February 1, 2010. The yield based on the new payout is 1.40%.

Inergy (NRGY) markets, sells and distributes propane to retail and wholesale customers. October 26th the company increased its quarterly cash distribution to $0.675/unit. The distribution will be paid on November 13, 2009, to unitholders of record as of November 6, 2009. The ex-dividend date is November 4, 2009. This represents the 32nd consecutive quarterly increase. The yield based on the new payout is 8.81%.

Bank of Marin Bancorp (BMRC) offers banking products and services via eight branches in Marin County, three in Sonoma County & a loan production office in San Francisco. October 26th the company raised its quarterly cash dividend of $0.15/share. The cash dividend is payable on November 13, 2009 to shareholders of record at the close of business on November 2, 2009. The yield based on the new payout is 1.79%.

Inergy Holdings, L.P. (NRGP) assets include incentive distribution rights in Inergy, LP, which operates a retail and wholesale propane supply, marketing and distribution business. October 26th the company boosted its distribution 9% to $0.85/unit. The distribution will be paid on November 13, 2009, to unitholders of record as of November 6, 2009. The yield based on the new payout is 7.00%.

American Financial Group (AFG) provides specialty and multi-line property and casualty insurance, and sells tax-deferred annuities. October 26th the company increased its quarterly dividend 6% to $0.1375/share. The yield based on the new payout is 2.08%.

Questar (STR) is engaged in gas and oil exploration, energy marketing, gas gathering, transportation and storage, and retail gas distribution. October 27th the company increased its quarterly dividend to $0.13/share. The dividend is payable Dec. 14, 2009, to shareholders of record on Nov. 20, 2009. The yield based on the new payout is 1.30%.

Brandywine Realty (BDN) is a real estate investment trust owns, manages or has ownership interests in office and industrial properties aggregating some 38 million square feet. October 28th the company bumped its quarterly $0.15/share. The yield based on the new payout is 6.10%.

Strayer Education (STRA) offers academic programs via traditional classroom and online courses. October 29th the company boosted its annual dividend 67% to $3.00. The yield based on the new payout is 1.43%.

APCapital (ACAP) provides medical professional liability insurance in the U.S. October 29th the company increased its quarterly dividend 9% to $0.09/share. The dividend is payable on December 31, 2009 to shareholders of record on December 11, 2009. The yield based on the new payout is 1.22%.

It is impossible to say with perfect assurance what company will become the next great dividend stock. However, I can say with a high degree of confidence that the next great one raised its dividend this year. 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.