Dividends Value » DLM

9 Stocks With A Vision Of Higher Dividends *

D4L — Fri, 11 Jun 2010 07:30:44 +0000

A vision is taking the time to contemplate and anticipate, in detail, what the future will bring. A financial vision needs to consider future earnings, savings and economic issues such as inflation. Then based on your vision, you formulate an action plan to ensure the best possible outcome given your unique circumstances. You can’t have a retirement plan until you have a retirement vision. It would seem to me that there are a lot or retirement plans out there but very few retirement visions.

A portion of my retirement planning includes dividend growth investments. Here are a few select companies that have recently followed through on their vision of providing increased cash dividends to their shareholders:

Flowers Foods (FLO) is one of the largest producers and marketers of bakery products in the United States. June 4th the company increased its quarterly dividend 14.3% to $0.20/share. The dividend is payable on July 2 to shareholders of record on June 18. The ex-dividend date is June 16. The yield based on the new payout is 3.22%.

Universal Health Realty (UHT) invests in healthcare and human service related facilities. June 4th the company raised its quarterly dividend to $0.605/share. The dividend is payable on June 30, 2010 to shareholders of record as of June 16, 2010. The ex-dividend date is June 14, 2010. UHT is a Dividend Achiever and has raised its dividend for 23 consecutive years. The yield based on the new payout is 7.59%.

Tri-Continental (TY) one of the largest publicly traded diversified U.S. closed-end funds. June 4th the fund increased its quarterly distribution 11% to $0.05/share. The dividend is payable on July 1 to shareholders of record on June 14. The ex-dividend date is June 10. The yield based on the new payout is 1.77%.

Communications Systems (JCS) provides modular connecting and wiring devices for voice and data communications and media and rate conversion products for telecommunications networks. June 7th the company raised its quarterly dividend 7% to $0.15/share. The dividend is payable on July 1 to shareholders of record on June 21. The ex-dividend date is June 17. The yield based on the new payout is 5.75%.

Caterpillar (CAT) is the the world’s largest producer of earth-moving equipment, is also a big maker of electric power generators and engines used in petroleum markets. June 9th the company increased its quarterly dividend to $0.44/share. The dividend is payable August 20, 2010, to stockholders of record at the close of business, July 20, 2010. The ex-dividend date is July 16. CAT is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 3.10%.

Target (TGT) operates about 1,490 Target and 250 SuperTarget general merchandise stores across the U.S. June 9th the company raised its quarterly dividend 47% to $0.25/share. The dividend is payable on September 10 to shareholders of record on August 20. The ex-dividend date is August 18. TGT is a Dividend Aristocrat and has raised its dividend for 43 consecutive years. The yield based on the new payout is 1.90%.

American Eagle (AEO) is a specialty retailer of casual apparel, accessories and footwear primarily for young men and women between the ages of 15 and 25. June 9th the company increased its quarterly dividend 10% to $0.11/share. The dividend is payable on July 9, 2010 to stockholders of record at the close of business on June 28, 2010. The ex-dividend date is June 24. The yield based on the new payout is 3.60%.

Del Monte (DLM) is one of the largest producers, distributors and marketers of premium quality, branded food and pet products for the U.S. retail market. Also produces private label food and pet products. June 10th the company raised its quarterly dividend 80% to $0.09/share. The yield based on the new payout is 2.29%.

National Fuel Gas (NFG) is an integrated energy company with six operating segments: utility, pipeline & storage, exploration & production, international, energy marketing, and timber. June 10th the company raised its quarterly dividend 3% to $0.345/share. The dividend is payable on July 15 to shareholders of record on June 30. The ex-dividend date is June 28. NFG is a Dividend Champion and has raised its dividend for 40 consecutive years. The yield based on the new payout is 2.80%.

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)

Nine Stocks Giving Shareholders A Raise In The Second Quarter *

D4L — Fri, 03 Jul 2009 10:30:39 +0000

In 1985 I graduated from college and took my first job as a staff accountant with a $21,000 annual salary. Now I am over the same department that I was hired into and entry level staff accountants start with a base salary of $56,500 per year. That equates to a 4.2% annual increase. Just as employees expect an annual raise, so do dividend investors.

Understanding the importance of increasing dividends, these big-name companies raised their dividends in the second quarter:

Cardinal Health (CAH) – Yield: 2.28% – Analysis
Clorox (CLX) – Yield: 3.53% – Analysis
Del Monte Foods (DLM) – Yield: 2.08%
IBM (IBM) – Yield: 2.10%
Johnson & Johnson (JNJ) – Yield: 3.43% – Analysis
PepsiCo (PEP) – Yield: 3.18% – Analysis
Target (TGT) – Yield: 1.76%

Just this last week these two companies rewarded their shareholders with increased cash dividends:

General Mills (GIS) is a major producer of packaged consumer food products, including Big G cereals and Betty Crocker desserts/baking mixes. On June 29th, the company announced a 9% increase to its dividend to $0.47/share. The dividend is payable August 3, 2009, to shareholders of record July 10, 2009. At the new rate, the stock is yielding 3.23%.

MFA Financial (MFA) is a real estate investment trust that invests in secured by pools of mortgages on single family residences. This week MFA increased it quarterly dividend by 13.6% to $0.25/share. The ex-dividend date is July 9, 2009 and the dividend will be paid on July 31, 2009 to stockholders of record on July 13, 2009. At the new rate, the stock is yielding 14.29%.

The first step to identify excellent income stocks is to look for those that increase their dividend each year. For stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: Long CLX, JNJ, PEP. See a list of all my income holdings here.

(Photo Credit)

distributes and markets private label food and pet products.

PetSmart (PETM) Announces a 233% Dividend Increase *

D4L — Fri, 26 Jun 2009 10:30:58 +0000

In this environment many income investors are happy to see any dividend increase. Not all companies are hiding behind the economic downturn and short-changing their dividend increases. To the contrary, PetSmart (PETM) after an extensive analysis of expected free cash flows showed confidence in their our operating plan with a generous dividend increase and share repurchase plan.

PETM operates more than 1,100 pet stores in the U.S. and Canada, offering pet food, supplies and services. Tuesday the company PETM announced an increase its quarterly dividend of 233% to $0.10/share. In addition, its Board of Directors authorized a $350 million stock purchase plan. In a statement the company said it plans to continue to grow the business by opening about 40 stores per year for the foreseeable future. At the new rate, the stock is yielding 1.92%.

Below are some other companies rewarding their shareholders with increased cash dividends:

Del Monte Foods (DLM) is one of the largest producers, distributors and marketers of premium quality branded food and pet products for the U.S. retail market. The company also produces, distributes and markets private label food and pet products. Recently, DLM increased its quarterly dividend 25% to $0.05/share. The dividend is payable on August 6, 2009 to stockholders of record as of the close of business on July 23, 2009. At the new rate, the stock is yielding 2.22%.

Duke Energy (DUK) provides service to about 3.9 million electric customers in North Carolina, South Carolina, Indiana, Ohio and Kentucky, and 500,000 gas customers in Kentucky and Ohio. Tuesday, the company raised its quarterly dividend 4.3% to $0.24/share. “Despite challenging economic conditions, Duke Energy continues to successfully implement its business strategy. We are pleased to share this success with our investors,” said James E. Rogers, chairman, president and CEO. At the new rate, the stock is yielding 6.67%.

Darden (DRI) operates the Red Lobster, Olive Garden, Bahama Breeze and Seasons 52 chains, as well as the LongHorn Steakhouse and Capital Grille chains. On June 23rd the company announced a 25% increase in its quarterly dividend to $0.25/share. At the new rate, the stock is yielding 3.13%.

Hatteras Financial (HTS) is an externally managed mortgage real estate investment trust (REIT) formed to invest in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by a U.S. government agency. HTS on Tuesday increased its quarterly dividend by 4.71% to $1.10/share. The dividend will be paid on July 24, 2009, to stockholders of record on July 6, 2009, with an ex-dividend date of July 1, 2009. At the new rate, the stock is yielding 16.52%.

Though it may seem that most companies are cutting their dividends, many continue to show strength and increase their dividends. For stocks with a long string of consecutive dividend increases, see this list.

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

(Photo Credit)

distributes and markets private label food and pet products.