Dividends Value » DPL

28 Dividend Stocks Acting Like a Money Machine *

D4L — Fri, 28 Jan 2011 07:30:05 +0000

Readers of this space know that the primary focus of my investing efforts is to build an ever-increasing income income stream by investing in dividend growth securities. This means that often I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. As one that values diversity, I also invest in some high yield securities. However, any dividend stock that I invest in must have an increasing dividend.

Below are companies that have recently made their shareholders take notice with higher cash dividends:

Sensient Technologies (SXT) produces flavors, colors and fragrances for businesses operating in various industries, including food, pharmaceuticals and personal care. January 21st the company increased its quarterly dividend 5% to $0.21/share. The dividend is payable March 1, 2011, to shareholders of record on February 9, 2011. The ex-dividend date is February 7, 2011. The yield based on the new payout is 2.4%.

El Paso Pipeline (EPB) is a partnership owns and operates natural gas transportation pipelines and storage assets. January 21st the partnership raised its quarterly distribution 7.3% to $0.44/share. The distribution will be paid February 15, 2011, on all outstanding units to holders of record as of the close of business on February 1, 2011. The ex-distribution date is January 28, 2011. The yield based on the new payout is 5.2%.

Airgas (ARG) is a leading distributor of industrial, medical, and specialty gases and related equipment also distributes safety and other disposable supplies through its network of stores. January 21st the company increased its quarterly dividend 16% to $0.29/share. The dividend is payable on March 31, 2011 to shareholders of record as of March 15, 2011. The ex-dividend date is March 11, 2011. The yield based on the new payout is 1.8%.

Navios Maritime (NMM) owns and operates dry bulk carriers in Greece. January 21st the partnership raised its quarterly distribution 2.4% to $0.43/share. The distribution is payable on February 14, 2011 to unit holders of record as of February 9, 2011. The ex-distribution date is February 7, 2011. The yield based on the new payout is 9.1%.

Twin Disc Inc. (TWIN) designs, makes and distributes heavy-duty off-highway power transmission equipment for industrial, government, marine, and energy and natural resources markets. January 24th the company increased its quarterly dividend 14% to $0.08/share. The dividend is payable on March 1, 2011, to shareholders of record on February 11, 2011. The ex-dividend date is February 9, 2011. The yield based on the new payout is 1.1%.

Intel (INTC) is the world’s largest manufacturer of microprocessors, the central processing units of PCs, and also produces other semiconductor products. January 24th the company raised its quarterly dividend 15% to 18.12/share. The dividend is payable on March 1, 2011 to stockholders of record on February 7, 2011. The ex-dividend date is February 3, 2011. The yield based on the new payout is 3.48%.

Williams Partners (WPZ) is a limited partnership that engages in gathering, transporting, processing, and treating natural gas, as well as fractionating and storing natural gas liquids. January 24th the partnership increases quarterly distribution 2.2% to $0.7025/unit. The distribution is payable on February 11, 2011, to unitholders of record at the close of business on February 4, 2011. The ex-distribution date is February 2, 2011. The yield based on the new payout is 6%.

Bladex (BLX) offers financial services for banks and corporations in Latin American and Caribbean. January 24th the company raised its quarterly dividend 17.7% to $0.20/share. The dividend is payable on February 11, 2011 to stockholders registered as of February 3, 2011. The ex-dividend date is February 1, 2011. The yield based on the new payout is 4.6%.

Martin Midstream (MMLP) engages in the storage and distribution of petroleum products and by-products primarily in the United States Gulf Coast region. January 24th the company increased its quarterly distribution 1.3% to $0.76/share. The distribution is payable on February 14, 2011 to common unitholders of record as of the close of business on February 3, 2011. The ex-distribution date is February 1, 2011. The yield based on the new payout is 7.5%.

Norfolk Southern (NSC) operates 21,200 route miles serving 22 eastern states, the District of Columbia, and Ontario, Canada. January 25th the company raised its quarterly dividend 11% to $0.40/share. The dividend is payable on March 10, 2011, to stockholders of record on Feb. 4, 2011. The ex-dividend date is February 2, 2011. The yield based on the new payout is 2.5%.

National Instruments (NATI) is a provider of software and hardware technology solutions for creating custom measurement and automation systems typically used for design, control and test applications. January 25th the company increased its quarterly dividend 15.4% to $0.15/share. The dividend is payable on February 21, to shareholders of record on February 4, 2011. The ex-dividend date is February 2, 2011. The yield based on the new payout is 1.5%.

Rollins (ROL) provides pest and termite control services to residential and commercial customers. January 25th the company raised its quarterly dividend 16.7% to $0.07/share. The dividend is payable on March 10 to shareholders of record on Feb. 10. The ex-dividend date is Feb. 8. The yield based on the new payout is 1.45%.

Buckeye Tech (BKI) manufactures and markets specialty cellulose and absorbent fibers used in a variety of consumer products. January 26th the company increased its quarterly dividend 25% to $0.05/share. The yield based on the new payout is 1%.

RPC Inc. (RES) provides a range of specialized oilfield services and equipment primarily to independent and oil and gas companies. January 26th the company raised its quarterly dividend 47% to $0.07/share. The dividend is a 47% increase from the current rate of $0.0475/share. The dividend is payable March 10, 2011 to common stockholders of record at the close of business on February 10, 2011. The ex-dividend date is February 8, 2011. The yield based on the new payout is 1.6%.

Praxair (PX) is the largest producer of industrial gases in North and South America, and the second largest worldwide. It also provides ceramic and metallic coatings. January 26th the company increased its quarterly dividend 11% to $0.50/share. The dividend is payable on March 15, 2011 to shareholders of record on March 7, 2011. The ex-dividend date is March 3, 2011. PX is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 2.2%.

Energen Corp (EGN) is involved in natural gas distribution, and oil and gas exploration and production. January 26th the company raised its quarterly dividend 3.8% to $0.135/share. The dividend is payable March 1, 2011, to shareholders of record on February 15, 2011. The ex-dividend date is February 11, 2011. EGN is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 1%.

Teekay GP (TGP) provides marine transportation services for liquefied natural gas, liquefied petroleum gas (LPG), and crude oil. January 26th the partnership increased its quarterly distribution 5% to $0.63/share. The cash distribution is payable on February 14, 2011 to all unitholders of record on February 7, 2011. The ex-distribution date is February 3, 2011. The yield based on the new payout is 7.1%.

DPL Inc. (DPL) owns Dayton Power & Light, a utility that serves more than 500,000 electric retail customers in west central Ohio. January 26th the company increased its quarterly dividend 10% to $0.3325/share. The dividend is payable March 1, 2011 to common shareholders of record on February 15, 2011. The ex-dividend date is February 11, 2011. The yield based on the new payout is 5.0%.

Cardinal Financial (CFNL) provides banking products and services to customers in Virginia and greater Washington, D.C. metropolitan area. January 26th company raised its quarterly dividend 50% to $0.03/share. The dividend is payable on February 25, 2011 to shareholders of record as of the close of business on February 10, 2011. The ex-dividend date is February 8, 2011. The yield based on the new payout is 1%.

Eaton (ETN) products include electrical systems and components for power management, truck transmissions and fluid power systems, and services for industrial, mobile and aircraft equipment. January 27th the company increased its quarterly dividend 17% to $0.68 per common share. The dividend is payable on February 25 to shareholders of record at the close of business on February 7, 2011. The ex-dividend date is February 3. The yield based on the new payout is 2.6%.

Time Warner (TWC) is the largest pure-play U.S. cable multiple system operator (MSO), recently counting nearly 12.6 million customers, mostly located in New York, the Carolinas, Ohio, Southern California, and Texas. January 27th the company raised its quarterly dividend 20% to $0.48/share. The quarterly dividend is payable in cash on March 15, 2011 to stockholders of record at the close of business on February 28, 2011. The ex-dividend date is February 24, 2011. The yield based on the new payout is 2.8%.

Sandy Spring (SASR) owns and operates Sandy Spring Bank, which offers commercial banking, retail banking, and trust services in Maryland. January 27th the company raised its quarterly dividend to $0.08/share. The dividend is payable February 16, 2011 to shareholders of record on February 9, 2011. The ex-dividend date is February 7, 2011. The yield based on the new payout is 1.7%.

Magellan Midstream Partners (MMP) is engaged in the transportation, storage and distribution of refined petroleum products primarily through its 9,500-mile pipeline system. January 27th the partnership increased its quarterly distribution 2% to $0.7575/share. The distribution is payable February 14 to unitholders of record at the close of business on February 7, 2011. The ex-distribution date is February 3, 2011. The yield based on the new payout is 5.5%.

Harte-Hanks (HHS) provides direct marketing services and shopper advertising opportunities to local, regional, national and international consumer and business-to-business marketers. January 27th the company increased its quarterly dividend to $0.08/share. The dividend is payable on March 11 to shareholders of record on Feb. 25. The ex-dividend date is Feb. 23. The yield based on the new payout is 2.43%.

MarkWest Energy Partners (MWE) gathers, transports, and processes natural gas in the U.S. It also transports natural gas liquids and gathers and transports crude oil. January 27th the partnership increased its quarterly distribution 2% to $0.65/unit. The yield based on the new payout is 6.1%.

Arthur J. Gallagher (AJG) an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois. January 27th the company raised its quarterly dividend 3% to $0.33/share. The dividend is payable on April 15, 2011 to shareholders of record as of March 31, 2011. The yield based on the new payout is 4.4%.

Parker Hannifin (PH) is a global maker of industrial pneumatic, hydraulic, and vacuum motion/control systems, including related pumps, valves, filters, hoses, etc. Its products are used in everything from jet engines to trucks and autos and utility turbines. January 27th the company increased its quarterly dividend 10% to $0.32/share. The dividend is payable March 4, 2011 to shareholders of record as of February 10, 2011. The ex-dividend date is February 8, 2011. PH is a Dividend Achiever and has raised its dividend for 55 consecutive years. The yield based on the new payout is 1.5%.

J. M. Smucker’s (SJM) products include coffee, fruit spreads, peanut butter, shortening and oils, ice cream toppings, health and natural foods, and beverages. January 27th the company raised its quarterly dividend 10% to $0.44/share. The dividend is payable on Tuesday, March 1, 2011, to shareholders of record at the close of business on Friday, February 11, 2011. The ex-dividend date is February 9, 2011. SJM is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 2.8%.

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.

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

(Photo Credit)

8 Dividend Stocks Delivering Tangible Value *

D4L — Fri, 11 Dec 2009 10:30:38 +0000

A stock dividend, also known as a “scrip dividend”, is a dividend payment made with stock instead of cash. Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? In short, a stock dividend is nothing more than a glorified stock split. At the end of the process, the shareholder has more shares that are worth less. Like a stock split, you can not create value by issuing paper and getting nothing in exchange.

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 delivering real and tangible value in the form of increased cash dividends:

Graco (GGG) is a U.S.-based global producer of industrial pumps, valves, meters and accessories. December 4th the company increased its quarterly dividend 5% to $0.20/share. The dividend is payable on February 3, 2010, to shareholders of record at the close of business on January 19, 2010. The ex-dividend date is January 15, 2009. The yield based on the new payout is 2.80%.

Brandywine Realty Trust (BDN) is a real estate investment trust that owns, manages or has ownership interests in office and industrial properties. December 8th the company raised its quarterly dividend by 50% to $0.15/share. The dividend is payable on January 20, 2010 to holders of record on January 6, 2010. The yield based on the new payout is 5.87%.

Western Union (WU) is a leading independent provider of consumer money transfer services. December 9th the company boosted its quarterly dividend 600% to $0.06/share. The dividend is payable December 30, 2009 to shareholders of record at the close of business on December 21, 2009. The ex-dividend date is December 17, 2009. The company also authorized a new $1 billion share repurchase authorization. The new $1 billion, three year share repurchase authorization is effective as of January 1, 2010. The yield based on the new payout is 1.27%.

Valspar (VAL) manufactures and distributes a wide range of paints and coatings for architectural, industrial, packaging, automotive refinish and other markets. December 9th the company increased its quarterly dividend 7% to $0.16/share. The dividend is payable January 15, 2010 to all common stockholders of record on December 31, 2009. The ex-dividend date is December 29. VAL is a Dividend Achiever and has increased its dividend for 29 consecutive years. The yield based on the new payout is 3.29%.

DPL Inc. (DPL) is a utility that serves more than 500,000 electric retail customers in west central Ohio. December 9th the company raised its quarterly dividend 7% to $0.3025/share. The yield based on the new payout is 4.27%.

Horace Mann (HMN) markets and underwrites personal lines of property and casualty and life insurance and retirement annuities in the U.S. December 9th the company boosted its quarterly dividend 52% to $0.08/share. The dividend is payable on December 31, 2009 to shareholders of record as of December 21, 2009. The yield based on the new payout is 2.66%.

Erie Indemnity (ERIE) provides sales, underwriting, and policy issuance services to the policyholders of Erie Insurance Exchange in the United States. December 10th the company increased its quarterly dividend $0.48/share. The dividend is payable January 20, 2010, to shareholders of record as of January 5, 2010, with a dividend ex-date of December 31, 2009. ERIE is a Dividend Achiever and has increased its dividend for 19 consecutive years. The yield based on the new payout is 5.15%.

Edison International (EIX) is the holding company for Southern California Edison; businesses include electric power generation, financial investments, and real estate development. December 10th the company boosted its quarterly dividend 2% to $0.315/share. The dividend is payable January 31, 2010, to shareholders of record on December 31, 2009. The yield based on the new payout is 3.55%.

When a company raises its cash dividend, management is making a positive statement on their view of the future. 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)

10 Companies Increasing Dividends and Long-Term Returns *

D4L — Fri, 12 Dec 2008 11:30:00 +0000

It is well-documented 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 10 companies looking to increase their long-term returns by raising their cash dividends:

Interactive Data (IDC) Raises Qtr. Dividend 33% to $0.20/Share (3.48%)
Graco (GGG) Boosts Qtr. Dividend by 3% to $0.19/Share (3.50%)
Hillenbrand (HI) Raises Qtr. Dividend 1.4% to $0.185/Share (4.51%)
Triangle Capital Corporation (TCAP) Increases Dividend 33.3% To $0.40 Per Share (15.46%)
Nucor (NUE) Raises Qtr. Dividend by 9.4% to $0.35/Share (3.14%)
Progress Energy (PGN) Boosts Qtr. Dividend to $0.62/Share (6.20%)
DPL Inc. (DPL) Raises Qtr. Dividend by 3.6% to $0.285/Share (5.49%)
Valspar (VAL) Boosts Dividend from $0.14 to $0.15/Share
Erie Indemnity (ERIE) Raises Qtr. Dividends 2.3% (4.72)
Harsco (HSC) Raises Qtr. Dividend by 2.6% to $0.20/Share (3.20%)

NUE was reviewed on 9/1/2008 with a 5 Star-Buy rating. After running the remaining companies through my D4L-PreScreen.xls model, the Dividend Achiever PGN with a NPV of MMA Differential of $4,626 is one that I own and have on my watch list. None of the other companies’ NPV of MMA Differentials were close enough to warrant a more complete evaluation.

Disclosure: Long NUE and PGN.

(Photo: Steve Woods)