Dividends Value » FUL

Stocks Trying To Entice Investors With Their Dividends *

D4L — Fri, 09 Jul 2010 07:30:13 +0000

The goals of an income portfolio are much different than those of a capital appreciation portfolio. The good news is an income portfolio consisting of quality dividend growth stocks can not only succeed, but excel during a market downturn. Dividend investors are focused on building a stream of steadily rising income from solid companies. While many panic when their portfolios decline, income investors see a downturn as an incredible buying opportunity as they are look for sustainable growing dividends.

This week only one stock rewarded their shareholders with higher cash dividends:

Computer Services (CSVI) provides service and software solutions for financial institutions. July 6th the company increased its quarterly dividend 15.8% to $0.1/share. The dividend is payable on September 24, 2010, to shareholders of record as of the close of business on September 1, 2010. The ex-dividend date is August 30, 2010. The yield based on the new payout is 2.2%.

Members of the Dividend Achievers Index are comprised of companies incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased their annual regular dividend payments for the last ten or more consecutive years. Several of these companies declared cash dividends this past week including:

Bank of the Ozarks (OZRK) provides retail & commercial banking products and services via 70 banking and two loan production offices in AR, TX, NC. July 2nd the company declares a $0.15/share quarterly dividend. The dividend is payable July 23, 2010 to shareholders of record as of July 16, 2010. The ex-dividend date is July 14, 2010. Yield on the dividend is 1.7%. OZRK has paid a higher dividend for the last 12 consecutive years.

RPM Int’l (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. July 6th the company declared a $0.205/share quarterly dividend. The dividend is payable on July 30, 2010, to stockholders of record as of July 16, 2010. The ex-dividend date is July 13, 2010. Yield on the dividend is 4.6%. RPM has paid a higher dividend for the last 37 consecutive years.

Northwest Natural Gas (NWN) is a U.S. gas distribution utility serving Oregon and southwest Washington. July 6th the company declared a $0.415/share quarterly dividend. The dividend will be paid August 13, 2010, to shareholders of record on July 30, 2010. The ex-dividend date is July 28, 2010. Yield on the dividend is 3.7%. NWN has paid a higher dividend for the last 38 consecutive years.

H.B. Fuller (FUL) is an international manufacturer of adhesives, sealants, paints and specialty construction products. July 7th the company declared a $0.07/share quarterly dividend. The dividend is payable on August 5, 2010 to shareholders of record at the close of business on July 22, 2010. The ex-dividend date is July 20, 2010. Yield on the dividend is 1.4%. FUL has paid a higher dividend for the last 41 consecutive years.

Eaton Vance Corp. (EV) is a Boston-based holding company is primarily engaged in investment management. July 7th the company declares a $0.16/share quarterly dividend. The dividend is payable August 13, 2010 to shareholders of record on July 30, 2010. The ex-dividend date is July 28, 2010. Yield on the dividend is 2.2%. EV has paid a higher dividend for the last 30 consecutive years.

Colgate-Palmolive (CL) is a major consumer products company markets oral, personal and household care, and pet nutrition products in more than 200 countries and territories. July 8th the company declared a $0.53/share quarterly dividend. The dividend is payable on August 13, 2010, to shareholders of record on July 26, 2010. The ex-dividend date is July 22, 2010. Yield on the dividend is 2.6%. CL has paid a higher dividend for the last 47 consecutive years.

Tanger Factory Outlet (SKT) develops, acquires, owns, operates and manages factory outlet shopping centers in the United States. July 8th the company declared a $0.3875/share quarterly dividend. The dividend is payable to holders of record on July 30, 2010. The ex-dividend date is July 28, 2010. Yield on the dividend is 3.6%. SKY has paid a higher dividend for the last 17 consecutive years.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised or maintained 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 CL. See a list of all my income holdings here.

(Photo Credit)

4 Dividend Stocks Raising Dividends and Expectations *

D4L — Fri, 16 Apr 2010 10:30:19 +0000

Have you ever pondered the concept of forever or infinity? It is truly mind boggling! What is even more astonishing is that when I buy a stock, my target holding period is forever. For most people, myself included, that is hard to grasp and to carry out. When things start going bad, our primal instinct of flight kicks in and we want to sell. In many cases, that is the time we should be buying. Holding a stock through an economic downturn is much easier when it pays a rising dividend.

Below are several companies giving their shareholders a reason not to sell by increasing their cash dividends:

Enterprise Products Partners (EPD) is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation, and terminalling. April 13th the partnership increased its quarterly distribution to $0.5675/unit. The quarterly distribution will be paid on Thursday, May 6, 2010, to unit holders of record as of the close of business on Friday, April 30, 2010. The ex-dividend date is April 28. The yield based on the new payout is 6.36%.

Genesis Energy (GEL) is a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the United States. April 14th the partnership raised its quarterly distribution 8.9% over the first quarter 2009 to $0.3675/unit. The distribution will be paid on May 14, 2010, to Common Unitholders of record at the close of business on May 4, 2010. The ex-dividend date is April 30, 2010. The yield based on the new payout is 7.20%.

HB Fuller (FUL) is an international manufacturer of adhesives, sealants, paints and specialty construction products. April 15th the company increased its quarterly dividend 2.9% to $0.07/share. FUL is a Dividend Achiever and has raised its dividend for 41 consecutive years. The yield based on the new payout is 1.17%.

Donegal (DGICA) offers personal and commercial lines of insurance to businesses and individuals in 18 Mid-Atlantic, Midwestern and Southeastern states. April 15th the company raised its quarterly dividend 2.2% to $0.115/share. The dividend is payable May 17, 2010 to stockholders of record as of the close of business on May 3, 2010. The yield based on the new payout is 3.08%.

In addition to the above dividend raisers, the following Dividend Aristocrats declared regular quarterly cash dividends:

April 12th Walgreens (WAG) declared a quarterly dividend of $0.1375/share with a 1.5% yield. The dividend is payable June 12, 2010, to shareholders of record May 20, 2010. The ex-dividend date is May 6, 2010. [Analysis]

Pitney Bowes (PBI) on April 12 declared a quarterly dividend of $0.365/share with a 5.9% yield. The dividend is payable June 12, 2010, to shareholders of record on May 14, 2010. The ex-dividend date is May 12, 2010.

April 15th Consolidated Edison, Inc. (ED) declared a quarterly dividend of $0.595/share with a 5.3% yield. The dividend is payable June 15, 2010, to stockholders of record as of May 12, 2010. The ex-dividend date is May 10, 2010.

If you invest in good solid stocks that increase their dividends on a consistent basis, day-to-day share movements will not concern you. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

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

(Photo Credit)

Elite Dividend Stocks *

D4L — Wed, 29 Apr 2009 10:30:44 +0000

There are many lists of dividend companies such as S&P 500 Dividend Aristocrats, US Broad Dividend Achievers™ Index and The U.S. Dividend Champions. They all have one thing in common – trying to narrow the population to the very best dividend companies. When combined, as I did with the Stock Ideas list, this is a large and daunting list of 319 unique companies. So, how do we find the Elite companies on this list?

In an effort to narrow down the list, I considered what criteria makes an Elite Dividend company. Here is what I came up with (financial data from morningstar.com):

A Long Track Record Of Consecutive Dividend Increases: Aristocrats and Champions have increased their dividends for 25 consecutive years, while Achievers have done so for 10 years. The quickest way to narrow the list down was only include companies with 35 or more years of consecutive dividend increases. This reduced the population to 65 companies.

Ability To Generate Positive Free Cash Flows: To have cash available for dividends, a company must have cash left over after paying the operating expenses and normal capital expenditures. For this I looked for companies that had positive free cash flow for the last 10 years.

Free Cash Flow Sufficient To Pay The Dividend: Free cash flow can be positive, but still not enough to cover an increasing dividend. To ensure adequate coverage, I screened for companies with a 60% or less Free Cash Flow payout ratio.

Low Debt: Dividends paid out of Free Cash Flow must compete for other needs of the business such as interest and debt payments. Lower debt and interest requirements provide more cash for dividend payments. For this item, I eliminated all companies that had a debt to total capital percent in excess of 35%.

Low Risk: An Elite Dividend company will provide you a superior return without subjecting your investment to undue risk. My usual measure of risk indirectly incorporates the stock’s current valuation. I wanted this list to be valuation independent (e.g. a great stock could be on the list, but not be a buy because it is overvalued). For this measure I opted to use S&P’s Qualitative Risk Assessment. This is described by S&P as “the equity analyst’s view of a given company’s operational risk, or the risk of a firm’s ability to continue as an ongoing concern. The Qualitative Risk Assessment is a relative ranking to the S&P U.S. STARS universe, and should be reflective of risk factors related to a company’s operations, as opposed to risk and volatility measures associated with share prices. The rankings include Low, Medium and High.” I only included companies with a Low risk rating.

My Elite Dividends List that started with 319 companies, then dropped to 65 companies now after considering all the above, it is left with the following six companies:

Nucor Corp. (NUE) – Recent Analysis

Consecutive Dividend Increases: 35
Debt % of Total Capital: 29.2%
Free Cash Flow Payout: 22.9%

Illinois Tool Works (ITW) – Recent Analysis

Consecutive Dividend Increases: 45
Debt % of Total Capital: 32.4%
Free Cash Flow Payout: 29.9%

Johnson & Johnson (JNJ) – Recent Analysis

Consecutive Dividend Increases: 47
Debt % of Total Capital: 21.8%
Free Cash Flow Payout: 42.7%

3M Company (MMM) – Recent Analysis

Consecutive Dividend Increases: 51
Debt % of Total Capital: 17.6%
Free Cash Flow Payout: 40.9%

Procter & Gamble Co. (PG) – Recent Analysis

Consecutive Dividend Increases: 52
Debt % of Total Capital: 34.5%
Free Cash Flow Payout: 37.7%

Genuine Parts Co. (GPC) – Recent Analysis

Consecutive Dividend Increases: 53
Debt % of Total Capital: 17.7%
Free Cash Flow Payout: 59.4%

This is not a buy list. As noted above, the Elite Dividend List ignores valuation and other factors you must consider before purchasing one of these companies. Also, there were some very good companies that were close, but came up slightly short in just one category such as:

Coca-Cola Company (KO) had a Free Cash Flow payout % of 61.0% vs. a 60% target
Sysco Corp. (SYY) had a debt to total capital percentage of 37.5% vs. a 35% target
PepsiCo Inc. (PEP) had a debt to total capital percentage 40.2% vs. a 35% target
Lancaster Colony Corp. (LANC) did not have an S&P Qualitative Risk Assessment
H.B. Fuller Company (FUL) had an S&P Qualitative Risk Assessment of Medium vs. a Low target
Wal-Mart Stores Inc. (WMT) had a debt to total capital percentage of 39.9% vs. a 35% target

Full Disclosure: Long NUE, ITW, JNJ, MMM, PG, KO, SYY, PEP, WMT (my income holdings)

Procter & Gamble (PG) Increases Dividend 10% *

D4L — Fri, 17 Apr 2009 10:30:27 +0000

If you closely follow the daily financial news, it is easy become jaded and start believing that there isn’t any good news good news out there. Don’t be confused by the noise. There are still great companies committed to generating superior returns and rewarding their shareholder ever-increasing dividends. One blue-blood aristocrat did just that this week.

On Tuesday April 14, 2009, The Procter & Gamble Company (PG) announced a 10% increase in its quarterly dividend to $0.44/share. The dividend is payable on or after May 15, 2009 to shareholders of record at the close of business on April 24, 2009. This dividend increase extends PG’s string to 53 consecutive years. After the increase, PG’s dividend yield is 3.61%. PG is focused on providing branded consumer goods products. The Company markets its products in more than 180 countries. (Analysis)

This week several other companies joined PG and rewarded their shareholders with higher cash dividends:

Anworth Mortgage Asset Corporation (ANH) increased its quarterly common stock dividend 15.4% to $0.30/share. The dividend is payable on May 19, 2009 to common stockholders of record as of the close of business on April 30, 2009. The new dividend yield is 18.18%. Anworth is a mortgage real estate investment trust which invests primarily in securities guaranteed by U.S. Government-sponsored agencies, such as Fannie Mae, Freddie Mac or Ginnie Mae.

International Speedway Corporation (ISCA) declared an annual dividend of $0.14 per share, payable on June 30, 2009, to common stockholders of record on May 29, 2009. The dividend represents a 16.6% increase from the annual dividend of $0.12 declared last year. The new dividend yield is 0.70%. ISCA promotes motorsports activities in the U.S., and owns and/or operates major motorsports facilities.

H.B. Fuller (FUL) raised its quarterly dividend by 3% to $0.068/share. The dividend is payable on May 14, 2009 to shareholders of record at the close of business on April 30, 2009. The new dividend yield is 1.55%. FUL is an international manufacturer of adhesives, sealants, coatings, paints and specialty products.

Donegal Group (DGICA) boosted its quarterly dividend by 7.1% to $0.1125/share. The dividend will be payable on May 15 to shareholders of record on May 1. The new dividend yield is 2.72%. DGICA offers personal and commercial lines of insurance to businesses and individuals in 18 Mid-Atlantic, Midwestern and Southeastern states.

Southside Bancshares (SBSI) increased its quarterly dividend by 7.7% to $0.14/share. The new dividend yield is 2.55%. Headquartered in Tyler, TX, SBSI is a community-focused financial institution that offers a range of financial services to individuals, businesses, municipal entities and non-profit organizations in the communities served by it.

It was good to see the dividend raisers return. This is a busy time of the year for dividend increases. I look forward to seeing an increase in activity over the coming weeks. For the best companies with a long string of consecutive dividend increases, see this list.

Full Disclosure: No position in any of the aforementioned securities.

(Photo: Steve Woods)