Dividends Value » HCSG

12 Stocks Sending A Strong Message With Higher Dividends *

D4L — Fri, 15 Oct 2010 07:30:54 +0000

One of the many reasons I like dividend stocks is because they provide continuous feedback. As time passes, dividend investors see their income grow steadily. You don’t have to wait five to ten years to determine if the strategy is working. Each dividend and dividend increase provides reassurance that the strategy is working. When companies like 3M Company (MMM), Emerson Electric (EMR) and Dover Corp. (DOV) put together a string of consecutive dividend increases in excess of 50 years, they are sending a strong message to their shareholders.

Below are a few companies with not quite the legacy of those above, but nevertheless are providing positive feedback to their investors by with higher cash dividends:

Targa Resources (NGLS) is a natural gas midstream operator engaged in the business of gathering, compressing, treating, processing and selling natural gas and fractionating and selling natural gas liquids, or NGLs, and NGL products. October 8th the company increased its quarterly distribution to $0.5375/unit. The distribution is payable on November 12 to unitholders of record on October 18. The yield based on the new payout is 7.16%.

PAA Natural Gas Storage (PNG) is engaged in the business of acquisition, development, operation and commercial management of natural gas storage facilities. October 12th the company raised its quarterly distribution 58.8% to $0.3375/share. The distribution is payable on November 12, 2010, to holders of record of such units at the close of business on November 2, 2010. The ex-distribution date is October 29, 2010. The yield based on the new payout is 5.55%.

Bladex (BLX) is a Panama-based company that offers financial services for banks and corporations in Latin American and Caribbean. October 12th the company increased its quarterly cash dividend to $0.17/share. The dividend is payable on November 1, 2010 to stockholders registered as of October 22, 2010. The yield based on the new payout is 4.63%.

Goodrich (GR) is one of the world’s largest providers of equipment, parts and services to the large commercial, regional, business and military jet markets. October 12th the company raised its quarterly dividend 7% to $0.29/share. The dividend is payable December 30, 2010 to shareholders of record as of December 1, 2010. The yield based on the new payout is 1.51%.

Healthcare Services Group (HCSG) provides housekeeping, laundry, linen, facility maintenance and food services to hospitals and other health care facilities. October 12th the company increased its quarterly dividend 1% to $0.2325/share. The company also announced a 3-for-2 stock split. The yield based on the new payout is 3.80%.

Genesis Energy (GEL) operates crude oil common carrier pipelines, is an independent gatherer and marketer of crude oil, and operates a wholesale CO2 business. October 13th the company raised its quarterly distribution 3.3% to $0.3875/unit. The distribution will be paid on November 12, 2010, to unitholders of record at the close of business on November 2, 2010. The ex-distribution date is October 29, 2010. The yield based on the new payout is 6.15%

Calumet Specialty Products (CLMT) is an independent U.S. refiner and marketer that operates refineries in Louisiana and facilities in Pennsylvania and Texas, and distributes product throughout North America. October 13th the company increased its quarterly dividend to $0.46/unit. The distribution is payable on Nov. 12 to shareholders of record on Nov. 2. The ex-dividend date is Oct. 29. The yield based on the new payout is 8.79%.

Enterprise Products Partners L.P. (EPD) is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation, and terminalling. October 14th the partnership raised its quarterly distribution 1.3% to $0.5825/unit. The quarterly distribution will be paid on November 8, 2010, to unitholders of record as of the close of business on October 29, 2010. The ex-distribution date is October 27, 2010. EPD is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 5.60%.

Duncan Energy (DEP) gathers, transports, markets, and stores natural gas, as well as in transporting and storing natural gas liquids (NGLs) and petrochemicals in the U.S. October 14th the company raised its quarterly distribution to $0.4525/unit. The distribution is payable on Monday, November 8, 2010, to unitholders of record at the close of business on Friday, October 29, 2010. The ex-distribution date is October 27, 2010. The yield based on the new payout is 5.47%.

Enterprise GP Holdings (EPE) owns the general partner of Enterprise Products Partners, L.P. (EPD), a North American midstream energy company. October 14th the partnership increased its quarterly distribution 2.7% to $0.575/unit. The distribution is payable on November 8, 2010, to unitholders of record as of the close of business on October 29, 2010. The ex-distribution date is October 27, 2010. The yield based on the new payout is 3.63%.

A. Schulman (SHLM) sells plastic resins in various forms, which are used as raw materials by its customers, who include manufacturers, custom molders, processors and extruders. October 14th the company raised its quarterly dividend 3.3% to $0.155/share. The dividend is payable November 1, 2010, to shareholders of record on October 25, 2010. The ex-dividend date is October 21, 2010. The yield based on the new payout is 2.99%.

Omega Healthcare (OHI) invests in and provides financing to the long-term care industry. Its portfolio includes health care facilities in 27 states. October 14th the company increased its quarterly dividend 2.8% to $0.37/share. The dividend is payable November 15, 2010 to common stockholders of record on October 29, 2010. The ex-dividend date is October 27, 2010. The yield based on the new payout is 6.41%.

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 MMM, EMR. See a list of all my income holdings here.

(Photo Credit)

13 Stocks Growing Their Cash Dividends *

D4L — Fri, 16 Jul 2010 07:30:46 +0000

Dividend growth investing in its classic form focuses on identifying solid companies with a long record of growing their dividends each year; and an expectation that they will continue to do so into the future. The focus is not solely on yield but a combination of yield and dividend growth. Often it is the lower yield, higher growth, security that will provide the best return over time.

Here are several stocks living up to shareholders’ expectations by raising their cash dividends:

Fastenal Company (FAST) distributes fasteners and other industrial and construction supplies through 2,400 stores throughout the U.S. and in a few foreign countries. July 12th the company increased its semi-annual dividend to $0.42/share. The dividend is payable September 3, 2010 to shareholders of record at the close of business on August 20, 2010. FAST is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 1.62%.

Genesis Energy (GEL) is a limited partnership that operates crude oil common carrier pipelines, is an independent gatherer and marketer of crude oil and operates a wholesale CO2 business. July 13th the partnership raised its quarterly distribution 8.7% over Q2/2009 to $0.375/unit. The distribution will be paid on August 13, 2010, to Common Unitholders of record at the close of business on August 3, 2010. The ex-distribution date is July 30, 2010. The yield based on the new payout is 7.39%.

Enterprise Products (EPD) is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation, and terminalling. July 13th the partnership increases its quarterly distribution 5.5% to $0.575/unit. The quarterly distribution will be paid on Thursday, August 5, 2010, to unitholders of record as of the close of business on Friday, July 30, 2010. The ex-distribution date is July 28, 2010. EPD is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 6.21%.

Duncan Energy Partners (DEP) transports, markets, and stores natural gas, as well as in transporting and storing natural gas liquids (NGLs) and petrochemicals in the U.S. July 13th the partnership raised its quarterly distribution 3.4% to $0.45/unit. The distribution will be paid Friday, August 6, 2010, to unitholders of record at the close of business on Friday, July 30, 2010. The ex-distribution date is July 28, 2010. The yield based on the new payout is 6.31%.

Cummins (CMI) i a leading manufacturer of truck engines also makes stand-by power equipment and industrial filters. July 13th the company increased its quarterly dividend 50% to $0.2625/share. The dividend is payable on Sept. 1 to shareholders of record on August 23. The ex-dividend date is August 21. The yield based on the new payout is 1.42%.

Healthcare Services Group (HCSG) provides housekeeping, laundry, linen, facility maintenance and food services to hospitals and other health care facilities. July 13th the company increases its quarterly dividend 4.5% to $0.23/share. The dividend is payable on August 6, 2010 to shareholders of record at the close of business July 23, 2010. The ex-dividend date is July 21, 2010. The yield based on the new payout is 4.96%.

National Semi (NSM) is a leading manufacturer of a broad line of semiconductors, including analog, digital and mixed-signal integrated circuits. July 14th the company raised its quarterly dividend 25% to $0.10/share. The dividend will be paid on Oct. 12, 2010 to shareholders of record at the close of business on Sept. 20, 2010. The ex-dividend date is September 16, 2010. The yield based on the new payout is 2.79%.

Walgreen (WAG) is the largest U.S. retail drug chain and operates more than 7,500 drug stores throughout the U.S. and Puerto Rico. July 14th the company increased its quarterly dividend 27% to $0.175/share. The dividend is payable Sept. 11, 2010, to shareholders of record Aug. 19, 2010. The ex-dividend date is August 15, 2010. WAG is a Dividend Aristocrat and has raised its dividend for 35 consecutive years. The yield based on the new payout is 2.38%.

ONEOK Partners (OKS) is a leading transporter of natural gas and natural gas liquids (NGLs) in the Mid-Continent area to market centers in the U.S. July 14th the partnership raised its quarterly distribution to $1.12/unit. The distribution is payable August 13, 2010, to unitholders of record as of July 30, 2010. The ex-distribution date is July 28, 2010. The yield based on the new payout is 6.55%.

National Retail Properties (NNN) invests in high-quality, freestanding retail properties subject to long-term net leases with major retail tenants. July 15th the REIT raised its quarterly dividend 1.3% to $0.38/share. The dividend is payable August 16, 2010 to common shareholders of record on July 30, 2010. The ex-dividend date is July 28, 2010. NNN is a Dividend Achiever and has raised its dividend for 19 consecutive years. The yield based on the new payout is 6.67%.

PPG Industries (PPG) is a leading manufacturer of coatings and resins, flat and fiber glass, and industrial and specialty chemicals. July 15th the company increased its quarterly dividend 1.9% to $0.55/share. The dividend is payable September 10, 2010, to shareholders of record August 10, 2010. The ex-dividend date is August 6, 2010. PPG is a Dividend Achiever and has raised its dividend for 37 consecutive years. The yield based on the new payout is 3.40%.

ONEOK (OKE) is an integrated natural gas company also has an energy marketing and trading business. July 15th the company raised its quarterly dividend 5% to $0.46/share. The dividend is payable August 13, 2010, to shareholders of record at the close of business July 30, 2010. The ex-dividend date is July 28, 2010. The yield based on the new payout is 4.00%.

Omega Healthcare (OHI) invests in and provides financing to the long-term care industry. Its portfolio includes health care facilities in 27 states. July 15th the REIT increased its quarterly dividend 12.5% to $0.36/share.The dividend is to be paid August 16, 2010 to common stockholders of record on July 30, 2010. The ex-dividend date is July 28, 2010. The yield based on the new payout is 6.90%.

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

(Photo Credit)

Seven Companies Raising Their Dividends *

D4L — Fri, 17 Jul 2009 10:30:12 +0000

It is well-documented that a significant portion of the historical equity returns are a result of reinvested dividends. Performance in any given year is driven by capital appreciation, but long-term returns are largely the result of reinvested dividends. It is important to note that you can reinvest dividends without participating in a formal DRIP plan. However, you can’t reinvest dividends unless the company pays them, and the really good companies increase their cash dividends each year.

Last week we saw only one company increasing its dividend. This week seven companies stepped up and rewarded their shareholders with higher cash dividends:

A. O. Smith (AOS) is a manufacturer of electric motors and residential and commercial water heaters. This past week, AOS increased its dividend 2.6% to $0.195/ share. The dividend is payable on August 17th to shareholders of record July 31st. AOS is a Dividend Achiever and has increased its dividend for 16 consecutive years. The current yield based on the new dividend is 2.29%.

Healthcare Services (HCSG) provides housekeeping, laundry, linen, facility maintenance and food services to hospitals and other health care facilities. Tuesday, the company raised its dividend by 6% to $0.19/share. The dividend is payable on August 7th to shareholders of record at the close of business July 24th. HCSG paid its first dividend in 2003 and has increased each year since then. The current yield based on the new dividend is 4.08%.

Harleysville (HARL) is a Pennsylvania-based bank holding company, with total assets of $825.7 million at September 30, 2008. Wednesday, the company boosted its quarterly dividend 5.6% to $0.19/share. The dividend is payable on August 19th to stockholders of record on August 5th. HARL is a Dividend Achiever and has increased its dividend for 22 consecutive years. The current yield based on the new dividend is 4.94%.

Landstar (LSTR) operates a family of truckload carriers using independent drivers, truck brokers, and commissioned sales agents. This week, the company increased it quarterly dividend 13% to $0.045/share. The current yield based on the new dividend is 0.52%.

Unum (UNM) is a leading provider of individual and group disability coverage was formed through the June 1999 merger of Provident Cos. and UNUM Corp. Thursday, the company raised its quarterly dividend 10% to $0.0825/share. the dividend will be paid on August 21st to stockholders of record on July 31st. The current yield based on the new dividend is 2.03%.

ONEOK (OKE) in an integrated natural gas company has an expanding energy marketing and trading business. The company boosted its quarterly dividend 5% to $0.42/share. The dividend is payable on August 14th to shareholders of record at the close of business July 31st. The current yield based on the new dividend is 5.55%.

Ryder (R) provides truck leasing and rental, logistics and supply chain management solutions worldwide. Thursday, the company raised its quarterly dividend by 8.7% to $0.25/share. The dividend is payable on September 18th to shareholders of record on August 24th. The current yield based on the new dividend is 3.74%.

All income investors appreciate more dividends to reinvest. For stocks with a long string of consecutive dividend increases, see this list.

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

(Photo Credit)

Healthcare Services (HCSG) Increases Qtr. Dividend 7% and Others *

D4L — Thu, 16 Oct 2008 10:30:00 +0000

I love a sale! Last week equities around the world went on sale. Some stocks that had I wondered if they would ever be cheap enough to buy were last week. I felt like my wife the day after Thanksgiving. Everywhere I turned there were stocks selling at a cut rate. But not all of them were bargains. Some of them deserved to have their prices slashed. It is our job as investors to cut through the noise and find the real values.

One indication of the strong company is the ability to raise its dividend in the face of adverse market and economic conditions. Here are a few select companies that recently raised their cash dividends:

BCB Bancorp (BCBP) Increases Qtr. Dividend 20% to $0.12/Share (3.63%)
RPM Intl (RPM) Boosts Qtr Dividend 5% to $0.20/Share (4.99%)
Compass Diversified (CODI) Raises Qtr Dividend 5% to $0.34/Share (10.40%)
Healthcare Services (HCSG) Increases Qtr. Dividend 7% to $0.16/Share (4.52%)
Park National (PRK) Boosts Qtr. Dividend 1% to $0.95/Share (5.09%)

After running these companies through my D4L-PreScreen.xls model, RPM with a NPV of MMA Differential of $5,538 and a dividend yield of 4.99% could warrant an additional look. HCSG has only paid a dividend for 6 years, but during that time it has an impressive record with a 3-year compound annual growth rate over 35%. This is one I will keep an eye on.

None of the others achieved the necessary NPV of MMA Differential to justify a full evaluation.

Disclosure: No position in the aforementioned stocks.

(Photo: Steve Woods)