Dividends Value » GIS

4 Dividend Stocks Increasing Shareholder Wealth With Higher Dividends *

D4L — Fri, 02 Jul 2010 07:30:56 +0000

Dividend growth investing is a long-term strategy. A growing dividend is a sign that the company is becoming more valuable. Companies that consistently increase dividends tend to have steadily rising share prices and the best way to benefit from this is to buy and hold the stocks. Diversification and a focus on blue-chip stocks provides insurance for the few companies that don’t pan out.

Below are some companies that are increasing shareholder wealth by raising their cash dividends:

General Mills (GIS) is a major producer of packaged consumer food products, including Big G cereals and Betty Crocker desserts/baking mixes. June 28th the company increased its quarterly dividend 17% to $0.28/share. The dividend is payable August 2, 2010, to shareholders of record July 12, 2010. The ex-dividend date is July 8, 2010. The yield based on the new payout is 3.15%. Ken Powell, DIS’s Chairman and Chief Executive Officer stated, “Strong and growing cash dividends are an important component of General Mills’ total return to our shareholders. The dividend increase announced today is a reflection of our company’s robust financial condition and excellent future growth prospects.”

MSC Industrial (MSM) is direct marketer focusing on maintenance, repair and operations supplies. June 30th the company increased its quarterly dividend 10% to $0.22/share. The dividend is payable on July 27, 2010 to shareholders of record at the close of business on July 13, 2010. The ex-dividend date is July 9, 2010. The yield based on the new payout is 1.74%.

Freeport McMoRan Copper and Gold Inc. (FCX) is the world’s second largest copper producer. June 24nd the company raised its quarterly dividend 100% to $0.30/share. The dividend is payable on August 16, 2010, to shareholders of record at the close of business July 15, 2010. The yield based on the new payout is 2.03%.

Government Properties Income Trust (GOV) is a real estate investment trust, or REIT, which owns properties leased primarily to the U.S. Government and state governments located throughout the United States. July 1st the company increased its quarterly dividend. The dividend is payable shareholders of record as of the close of business on July 16, 2010 and distributed on or about August 16, 2010. The yield based on the new payout is 6.31%.

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)

8 Stocks Compounding Their Dividends *

D4L — Fri, 18 Dec 2009 10:30:24 +0000

Compound interest is what occurs when interest previously earned is added to the principle and is considered when calculating future interest – i.e. earning interest on interest. So, what’s more powerful than compound interest? Compound dividends! Compound dividends are like compound interest on steroids – you are not only earning on reinvested dividends, but the dividend rate is increasing.

Here are several companies compounding their dividends by recently raising their cash distributions to shareholders:

Safeway (SWY) is a major food retailer that operates about 1,750 stores in the U.S. and Canada. December 11th the company increased its quarterly cash dividend to $0.10/share. The dividend is payable on January 14, 2010 to stockholders of record at the close of business on December 24, 2009. The ex-dividend date is December 22. The yield based on the new payout is 1.87%.

Pfizer (PFE) is the world’s largest pharmaceutical company. It produces a wide range of drugs across a broad therapeutic spectrum. December 14th the company raised its quarterly dividend 12.5% to $0.18/share. The dividend is payable March 2, 2010, to shareholders of record at the close of business on February 5, 2010. The yield based on the new payout is 3.91%.

General Mills (GIS) is a major producer of packaged consumer food products, including Big G cereals and Betty Crocker desserts/baking mixes. December 14th the company boosted its quarterly dividend 12% $0.49/share. The dividend is payable February 1, 2010, to shareholders of record January 11, 2010. The yield based on the new payout is 2.87%.

Hatteras Financial (HTS) is a REIT investing in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities. December 15th the company increased its quarterly dividend to $1.20/share. The dividend will be paid on January 22, 2010, to stockholders of record on December 28, 2009, with an ex-dividend date of December 23, 2009. The yield based on the new payout is 15.82%.

Moody’s (MCO) is a leading global credit rating, research and risk analysis concern. December 15th the company increased its quarterly dividend 5% to $0.105/share. The dividend is payable March 10, 2010 to stockholders of record at the close of business on February 20, 2010. The yield based on the new payout is 1.56%.

BCE (BCE) is a Canadian wireline and wireless telecommunications company. December 17th the company raised its annual dividend 7% to $1.74/share. The first quarter installment is payable on April 15, 2010 to shareholders of record at the close of business on March 15, 2010. The yield based on the new payout is 6.80%.

Waste Management (WM) is the largest U.S. trash hauling/disposal company. December 17th the company increased its quarterly dividend 9% to $0.315/share. This marks the sixth consecutive year that the Company has increased its quarterly dividend. The yield based on the new payout is 3.85%.

Urstadt Biddle Properties (UBA) this REIT owns and manages commercial real estate properties primarily in the northeastern United States. December 17th the company boosted its quarterly dividend to $0.2425/share. The dividends are payable January 22, 2010 to stockholders of record on January 8, 2010. The yield based on the new payout is 6.44%.

To maximize the compounding effect, a company must raise their dividends each year. 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.

The Few, The Proud, The Dividend Raisers! *

D4L — Fri, 13 Mar 2009 10:30:45 +0000

This last week was similar to each of the two prior weeks in that we saw another large bank slash its dividend by more than 80%. Last Friday, Wells Fargo & Company (WFC) cut its dividend by 85% to $0.05. The company said it would help them retain an additional $5 billion in common equity each year.

During the week several big name companies declared dividends, including:

Safeway (SWY) $0.0828/share – yield 1.87%
General Mills (GIS) $0.43/share – yield 3.46%
Microsoft (MSFT) $0.13/share – yield 3.43% – (Analysis)
Heinz (HNZ) $0.415/share – yield 5.40%
Target (TGT) $0.16/share – yielding 2.35% - (Analysis)
Kraft (KFT) $0.29/share – yield 5.25% - (Analysis)

It is great when companies, like those above, follow through and pay their regular dividends at the appointed time. But it is even more important for companies to follow through and raise their dividend at the appropriate time. Unfortunately, fewer companies are increasing their dividends. This week there were only two to note:

Piedmont Natural Gas Company Inc. (PNY) is an energy services company that distributes natural gas to 1,016,000 residential, commercial and industrial customers in portions of North Carolina, South Carolina and Tennessee. On March 6th, the company declared a 3.8% increase in its quarterly dividend of $0.27/share. The dividend is payable April 15, 2009, to shareholders of record at the close of business on March 25, 2009. The stock now yields 4.85%. This is the 31st consecutive year PNY has raised its dividend. The company is a dividend Achiever and a dividend Champion.

Warwick Valley Telephone Company (WWVY) provides telephone, Internet and video services to customers in the towns of Warwick, Goshen and Wallkill, New York and West Milford and Vernon townships, New Jersey. On March 10th, the company increased its quarterly cash dividend by 10% to $0.22/share up from $0.20/share. The dividend will be paid on March 31, 2009 to shareholders of record as of March 20, 2009. Wisner H. Buckbee, Chairman of the Board, said “This dividend increase demonstrates the Board’s confidence in the continued strong performance of WVT’s business, our cash generation capabilities, and our firm commitment to our shareholders.” The stock now yields 9.78%.

For more companies around the world with a long string of consecutive dividend increases, see Dividends Value’s Stock Ideas page.

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

(Photo: Steve Woods)