Dividends Value » BOBE

9 Stocks Raising The Dividend Growth Bar *

D4L — Fri, 27 Aug 2010 07:30:52 +0000

Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confuse a buy-and-hold strategy with day-trading with a longer duration. A true implementation of buy-and-hold includes a focus on blue-chip stocks with a sustainable advantage, along with a reasonable asset allocation framework. One sign of a blue-chip stock is a long string of dividend increases.

Below are several companies that have recently raised the bar by increasing their cash dividends:

Lorillard (LO) is the third largest U.S. tobacco company and the leading manufacturer and marketer of menthol cigarettes. August 20th the company increased its quarterly dividend 12.5% to $1.125/share. The dividend is payable on September 10, 2010 to stockholders of record as of September 1, 2010. The ex-dividend date is August 30, 2010. The yield based on the new payout is 5.97%.

Northrim BanCorp (NRIM) is one of the largest commercial banks in Alaska, with operations primarily in Anchorage and Fairbanks. August 20th the company raised its quarterly dividend 20% to $0.12/share. The dividend is payable September 17, 2010, to shareholders of record at the close of business September 9, 2010. The yield based on the new payout is 2.93%.

Badger Meter (BMI) is a leading manufacturer and marketer of products incorporating liquid flow measurement and control technologies developed both internally and with other technology companies. August 20th the company increased its quarterly dividend $16.6% to $0.14/share. The dividend is payable on Sept. 15 to shareholders of record on Aug. 31. The ex-dividend date is Aug. 27. BMI is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 1.50%.

MGE Energy (MGEE) generates and distributes electricity and distributes natural gas in Wisconsin. August 20th the company raised its quarterly dividend to $0.3751/share. The dividend is payable on Sept. 15 to shareholders of record on Sept. 1. The ex-dividend date is Aug. 30. MGEE is a Dividend Achiever and has raised its dividend for 35 consecutive years. The yield based on the new payout is 4.14%.

G&K Services (GKSR) provides branded identity apparel and facility services programs. August 23rd the company increased its quarterly dividend 27% to $0.095/share. The dividend is payable on September 30, 2010 to shareholders of record at the close of business on September 16, 2010. The ex-dividend date is September 1. The yield based on the new payout is 1.93%.

Westlake Chemical (WLK) is an integrated manufacturer of petrochemicals, polymers and fabricated vinyl products. August 23rd the company raised its quarterly 10% dividend to $0.0635/share. The dividend is payable on September 16, 2010, to stockholders of record on September 1, 2010. The ex-dividend date is August 30. The yield based on the new payout is 1.02%.

Todd Shipyards (TOD) repairs, overhauls, converts, and constructs commercial and military ships in the Pacific Northwest. August 23rd the company increased its quarterly dividend to $0.10/share. This dividend is payable December 23, 2010, to shareholders of record as of December 8, 2010. The yield based on the new payout is 1.99%.

Bob Evans Farms (BOBE) owns and operates 571 Bob Evans Restaurants & 132 Mimi’s Cafes. It also produces and distributes pork sausage, complementary home-style convenience food items. August 25th the company raised its quarterly dividend 11.1% to $0.20/share. The dividend is payable on September 21 to stockholders of record at the close of business on September 7, 2010. The ex-dividend date is September 3, 2010. The yield based on the new payout is 3.14%.

Ship Finance (SFL) owns an international fleet of crude oil tankers, which are leased under long-term, fixed-price charters. August 26th the company increased its quarterly dividend to $0.35/share. The yield based on the new payout is 7.87%.

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)

11 Dividend Stocks Increasing Dividends and Long-Term Returns *

D4L — Fri, 20 Nov 2009 10:30:30 +0000

It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.

Here are several companies looking to increase their long-term returns by raising their cash dividends:

Intel (INTC) is the world’s largest manufacturer of microprocessors, the central processing units of PCs, and also produces other semiconductor products. November 16th, the company raised its quarterly dividend 12.5% to $0.1575/share. Paul Otellini, Intel president and CEO commented “With one of the highest dividend yields in the technology industry, the dividend increase is another sign of our confidence in business prospects going forward.” The yield based on the new payout is 3.26%.

Lancaster Colony (LANC) manufactures and markets consumer products in two segments: Specialty Foods, and Glassware and Candles. November 16th the company increased its dividend 5.3% to $0.30/share. The payable is payable December 31, 2009 to shareholders of record on December 10, 2009. The ex-dividend date is December 8. LANC is a Dividend Achiever and has increased its dividend for 47 consecutive years. The yield based on the new payout is 2.41%.

Brown-Forman (BF.A) on November 16 raised its dividend 4.3% to $0.30/share. Stockholders of record on December 7, 2009 will receive the cash dividend on January 4, 2010. This is Brown-Forman’s 64th consecutive year of quarterly dividends and the 26th consecutive year it has increased the annual dividend. The yield based on the new payout is 2.23%.

Sysco (SYY) is the largest U.S. marketer and distributor of foodservice products. November 17th the company boosted its dividend to $0.25/share. The dividend is payable on January 22, 2010, to common shareholders of record at the close of business on December 31, 2009. The ex-dividend date is December 29, 2009. LANC is a Dividend Achiever and has increased its dividend for 39 consecutive years. The yield based on the new payout is 3.66%.

Royal Gold (RGLD) is the largest U.S.-based company engaged in the acquisition and management of precious metal royalty interests. November 18th the company increased its quarterly dividend 13% to $0.09/share. The dividend is payable January 15, 2010, to shareholders of record at the close of business on January 4, 2010. The ex-dividend date is December 31, 2009. The yield based on the new payout is 0.68%.

PennantPark (PNNT) specializes in direct and mezzanine investments in middle-market companies. November 18th the company raised its quarterly dividend 4.2% to $0.25/share.The dividend is payable on January 4, 2010 to stockholders of record as of December 24, 2009. The ex-dividend date is December 22. The yield based on the new payout is 11.96%.

Harsco (HSC) is a industrial service provider and manufacturer has operations in steel
mill services and access services, as well as construction. November 19th the company boosted it quarterly dividend for the 16th consecutive year to $0.205/share. The dividend is payable February 16, 2010 to Harsco stockholders of record as of January 15, 2010. The ex-dividend date is January 13. The dividend yield on the new payout is 2.5%. LANC is a Dividend Achiever and has increased its dividend for 19 consecutive years. The yield based on the new payout is 2.52%.

NSTAR (NST) was created through the 1999 merger of BEC Energy and Commonwealth Energy System. November 19th the company increased its quarterly dividend 6.7% to $0.40/share.The payable February 1, 2010 to shareholders of record as of January 8, 2010. The ex-dividend date is January 6. The yield based on the new payout is 4.98%.

Laclede Group (LG) distributes natural gas on a retail basis in St. Louis and nearby suburban areas. November 19th the company raised its quarterly dividend to $0.395/share. The dividend will be payable on January 4, 2010, to shareholders of record on December 11, 2009. The ex-dividend date is December 9, 2009. Yield on the dividend is 5%. The yield based on the new payout is 5.00%.

Bob Evans Farms (BOBE) owned and operated 571 Bob Evans Restaurants & 132 Mimi’s Cafes. November 19th the company announced a 12.5% increase in the quarterly cash dividend to $0.18/share. The dividend is payable on Dec. 15 to stockholders of record at the close of business on Dec. 4. The yield based on the new payout is 2.83%.

Nike (NKE) is the world’s leading designer and marketer of high-quality athletic
footwear, athletic apparel, and accessories. November 19th, the company increased its quarterly dividend 8% to $0.27/share. The dividend is payable on January 4, 2010 to shareholders of record at the close of business on December 7, 2009. The yield based on the new payout is 1.70%.

When looking for stocks with growing dividends, longevity of consecutive increases is important. For a list of stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: Long INTC, SYY. See a list of all my income holdings here.

(Photo Credit)

Looking for the Perfect Dividend Stock *

D4L — Fri, 14 Nov 2008 11:30:00 +0000

In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate ratable with its increasing dividend. All of this would be driven by increasing earnings and cash flow.

I haven’t found the perfect dividend stock yet. However, here are several stocks that recently raised their raised their cash dividends:

Community Trust Bancorp (CTBI) Boosts Qtr. Dividend by 3.45% to $0.30/Share (4.11%)
Baxter International (BAX) Raises Qt Dividend 20% to $0.26/Share (1.76%)
Automatic Data Processing (ADP) Increases Qtr. Dividend 13% to $0.33/Share (3.88%)
Massey Energy (MEE) Boosts Qtr. Dividend 20% to $0.06/Share (1.43%)
Bob Evans Farms (BOBE) Raises Qtr. Dividend by 14.3% to $0.16/Share (3.83%)
Equity LifeStyle Properties (ELS) Increases Qtr. Dividend by 25% to $0.25/Share (2.29%)
CNB Financial (CCNE) Boosts Qtr. Dividend by 3% to $0.165/Share (5.28%)
BorgWarner (BWA) Raises Qtr. Dividend 9% to $0.12/Share (2.80%)
New Jersey Resources (NJR) Increases Qtr. Dividend by 10.7% to $0.31/Share (3.15%)
Adams Resources & Energy (AE) Boosts Annual Dividend by 6% to $0.50/Share (2.82%)

After running these companies through my D4L-PreScreen.xls model, none of the above stocks qualified as the perfect dividend stock or even justified a more complete evaluation. CTBI, ADP and BWA had positive NPV of MMA Differentials, but below the level that would warrant a more detailed evaluation. I guess I will have to keep looking for the elusive perfect dividend stock.

Disclosure: No position in any of the aforementioned stocks.

(Photo: Steve Woods)