Dividends Value » HI

15 Stocks Growing Their Cash Dividends *

D4L — Fri, 10 Dec 2010 07:30:44 +0000

Throughout history there have always been great companies that stand head-and-shoulders above their peers and the competition. They are loved by their shareholders, hated by the competition and known by all. Just as all great companies have have something in common, great dividend companies also have something in common – they consistently raise their dividends each year.

Below are several companies stepping it up with higher cash dividends:

Hillenbrand (HI) manufactures and sells gasketed caskets made of carbon steel, stainless steel, copper & bronze; offers a cremation marketing system for funeral service professionals. December 3rd the company increased its quarterly dividend 1.3% to $0.19/share. The dividend is payable December 31, 2010, to shareholders of record at the close of business on December 15, 2010. The ex-dividend date is December 13, 2010. The yield based on the new payout is 3.9%.

Graco (GGG) is a U.S.-based global producer of industrial pumps, valves, meters, and accessories. December 3rd the company raised its quarterly dividend 5% to $0.21/share. The dividend is payable on February 2, 2011, to shareholders of record at the close of business on January 18, 2011. The ex-dividend date is January 14, 2010. GGG is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 2.2%.

Erie Indemnity (ERIE) provides sales, underwriting, and policy issuance services to the policyholders of Erie Insurance Exchange in the United States. December 7th the company increased its quarterly dividend 7.3% to $0.515/share. The dividend is payable on Jan. 20 to shareholders of record on Jan. 5. The ex-dividend date is Jan. 3. ERIE is a Dividend Achiever and has raised its dividend for 21 consecutive years. The yield based on the new payout is 3.27%.

Lawson Products (LAWS) manufactures, sells and distributes production and specialized component parts to the original equipment marketplace (OEM). December 7th the company raised its quarterly dividend to $0.12/share. The dividend is payable January 18, 2011, to stockholders of record on January 4, 2011. The yield based on the new payout is 2.1%.

CapLease (LSE) invests primarily in single tenant commercial real estate assets. December 8th the company raised its quarterly dividend 8% to $0.065/share. The dividend is payable on January 18, 2011 to stockholders of record as of December 31, 2010. The ex-dividend date is December 29, 2010. The yield based on the new payout is 4.2%.

Nucor (NUE) is largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. December 8th the company increased its quarterly dividend 0.7% to $0.3625/share. The dividend is payable on February 11, 2011 to stockholders of record on December 31, 2010. The ex-dividend date is December 29, 2010. NUE is a Dividend Achiever and has raised its dividend for 38 consecutive years. The yield based on the new payout is 3.5%.

Stryker (SYK) makes specialty surgical and medical products such as orthopedic implants, endoscopic items, and hospital beds. December 8th the company increases its quarterly dividend 20% to $0.18/share. The dividend is payable on January 31, 2011, to shareholders of record at the close of business on December 31, 2010. The ex-dividend date is December 29, 2010. SYK is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 1.4%.

One Liberty (OLP) invests primarily in improved commercial real estate under long-term net leases. December 8th the company increased its quarterly dividend 10% to $0.33/share. The dividend is payable January 4, 2011 to stockholders of record on December 23, 2010. The ex-dividend date is December 21, 2010. The yield based on the new payout is 8.2%.

Western Union (WU) is a leading independent provider of consumer money transfer services. December 8th the company raised its quarterly dividend 17% to $0.07/share. The dividend is payable December 31, 2010 to shareholders of record at the close of business on December 20, 2010. The ex-dividend date is December 16, 2010. The yield based on the new payout is 1.5%.

Freeport-McMoRan (FCX) is the world’s second largest copper producer and a major producer of gold and molybdenum. December 9th the company increased its quarterly dividend to $0.50/share, announced a $1.00/share supplemental dividend and also announced a 2-for-1 stock split. The yield based on the new payout is 1.8%.

W. P. Carey (WPC) is an investment firm that provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. December 9th the company raised its quarterly dividend 0.5% to $0.51/share. The dividend is payable on January 15, 2011 to shareholders of record as of December 31, 2010. The ex-dividend date is December 29, 2010. The yield based on the new payout is 6.9%.

Taubman Centers (TCO) is the general partner of The Taubman Realty Group L.P., an operating partnership that owns, operates and develops regional shopping centers across the U.S. December 9th the company increased its quarterly dividend 5.4% to $0.4375/share/share. The dividends are payable on Dec. 31 to shareholders of record on Dec. 17. The ex-dividend date is Dec. 15. The yield based on the new payout is 3.63%.

C.H. Robinson (CHRW) is a global provider of multimodal transportation and logistics solutions has a network of over 230 offices in North America, South America, Europe, and Asia. December 9th the company raised its quarterly dividend 16% to $0.29/share. The dividend is payable on January 3, 2011, to shareholders of record on December 20, 2010. The ex-dividend date is December 16, 2010. CHRW is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 1.5%.

Edison Int’l (EIX) is the holding company for Southern California Edison. Other businesses include electric power generation, financial investments, and real estate development. December 9th the company increased its quarterly dividend 1.6% to $0.32/share. The dividend is payable January 31, 2011, to shareholders of record on December 31, 2010. The ex-dividend date is December 29, 2010. The yield based on the new payout is 3.4%.

IAMGOLD (IAG) is a Canada-based mining and exploration company. December 9th the company raised its quarterly dividend 33% to $0.08/share. The dividend is payable January 14, 2011 to shareholders of record as of the close of trading on December 24, 2010. The ex-dividend date is December 22, 2010. In future, the Company plans to pay its dividend semi-annually. The yield based on the new payout is 1.9%.

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 NUE. See a list of all my income holdings here.

(Photo Credit)

Best Stocks For 2010 *

D4L — Tue, 22 Dec 2009 10:30:13 +0000

I always enjoy this time of year. The Christmas music, decorations, family gatherings, holiday plays and stock picks. Stock picks? Yes, ’tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind the picks. As a long-term buy and hold investor, generally most aren’t useful for me; nevertheless, I find them entertaining and sometimes there is a gem to be found.

Andrea Tse, in an article from TheStreet.com believes consumer-goods stocks are poised to grow next year as the economy lifts and consumer spending rebounds. Here are her 6 picks for 2010:

Scotts Miracle-Gro (SMG) - A leading international supplier of products for the lawn and garden market.
Clorox (CLX) – A manufacturer and marketer of consumer products including Clorox bleach, Armor All, STP, Kingsford, Hidden Valley, etc. CLX is a Dividend Aristocrat that has increased its dividend for the last 32 consecutive years.
Procter & Gamble (PG) – A leading consumer products company that markets its household and personal care products in more than 180 countries. PG is a Dividend Aristocrat that has increased its dividend for the last 53 consecutive years. [Analysis]
Philip Morris International (PMI) – An international tobacco company.
Johnson & Johnson (JNJ) – A leader in the pharmaceutical, medical device and consumer products industries. JNJ is a Dividend Aristocrat that has increased its dividend for the last 47 consecutive years. [Analysis]
PepsiCo (PEP) – a major international producer of branded beverage and snack food products. PEP is a Dividend Aristocrat that has increased its dividend for the last 37 consecutive years. [Analysis]

Fortune says it’s unlikely that equities will enjoy a repeat of the mass revival of 2009. But, they believe these 10 companies should prosper even if the markets don’t:

MasterCard (MA) – A global leader in credit card transaction processing and brand licensing providing services in over 210 countries and territories.
Amedisys (AMED) – A provider of home health care and hospice services in the eastern, southern and southeastern U.S.
Qualcomm (QCOM) – Focuses on developing products and services based on its advanced wireless broadband technology.
Petrohawk Energy (HK) – Independent oil and gas company that is engaged in the acquisition, production, exploration, and development of oil and gas properties.
Baxter International (BAX) – Global medical products and services company provides critical therapies for people with life-threatening conditions.
Quanta (PWR) – Provides specialized contracting services, offering end-to-end network solutions to the electric power, gas, telecommunications and cable television industries.
Salesforce.com (CRM) – A leading provider of on-demand customer relationship management applications.
American Tower (AMT) – Operates the largest independent portfolio of wireless communications and broadcast towers in North America.
Renhe (RNHEF) – Develops air-raid shelters in China.
Vornado (VNO) – REIT that owns a diverse group of properties, including Northeast retail properties, New York City office buildings, and other interests. VNO is a Dividend Achiever that has increased its dividend for the last 37 consecutive years.

James Altucher in an article on Daily Finance presented his 10 favorites for 2010:

Assured Guaranty (AGO) – Provides financial guaranty insurance and reinsurance, as well as mortgage guaranty coverage.
Wellcare Health Plans (WCG) – Provides managed care services targeted exclusively to government-sponsored health care programs.
Potash (POT) – One of the world’s largest diversified fertilizer companies and the world’s largest potash producer.
Cash America (CSH) – Owns and operates pawnshops in the United States.
Becton Dickison (BDX) - Provides a wide range of medical devices and diagnostic products used in hospitals, doctors’ offices, research labs and other settings. BDX is a Dividend Aristocrat that has increased its dividend for the last 37 consecutive years. [Analysis]
Hillenbrand (HI) – Hillenbrand is the largest supplier of products to the funeral service industry.
Telecom Corp. of New Zealand (NZT) – Provides telecommunications and information technology products and services to residential and business customers in New Zealand and Australia.
STEC (STEC) – Designs, makes and markets custom and open-standard memory solutions based on Flash memory and dynamic random access memory DRAM technologies.
Alvarion (ALVR) – Sells wireless broadband connectivity infrastructure products that allow telecom carriers and service providers to deliver high-speed data and voice services.
GlaxoSmithKline (GSK) – International pharmaceutical company formed in December 2000 through the merger of British drugmakers GlaxoWellcome and SmithKline Beecham.

As a long-term, buy-and-hold income investor, many of the stocks in the above lists don’t meet my criteria for a buy. Dividend investors are looking for stocks that will perform well over the long run, not just 2010. As such, I prefer to start with this list of stocks.

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

(Photo Daniela Baack)

11 Dividend Stocks Giving You More To Spend *

D4L — Fri, 04 Dec 2009 10:30:20 +0000

You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.

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 raising their cash dividends:

New Jersey Resources (NJR) supplies gas to more than 478,000 customers in central and northern New Jersey. December 1st the company increased its quarterly dividend 10% to $0.34/share. The dividend will be paid January 4, 2010 to shareholders of record on December 15, 2009. The ex-dividend date is December 11, 2009. The yield based on the new payout is 3.78%.

Toro Co. (TTC) makes, and markets outdoor maintenance and beautification products for home, recreation, and commercial landscapes. December 2nd the company raised its quarterly dividend 20% to $0.18/share. The dividend is payable on January 12, 2010 to shareholders of record on December 18, 2009. The ex-dividend date is December 16, 2009. The yield based on the new payout is 1.77%.

Lincoln Electric (LECO) manufactures arc welding products, robotic welding systems, and oxyfuel cutting equipment. December 2nd the company boosted its dividend 3.7% to $0.28/share. The dividend is payable January 15, 2010, to shareholders of record on December 31, 2009. The yield based on the new payout is 2.02%.

Enbridge (ENB) transports crude oil and other liquid hydrocarbons; and engages in gas utility operations that serve residential, commercial, industrial customers in Canada. December 2nd the company increased its quarterly dividend 15% to $0.425/share. The dividend is payable on March 1, 2010 to shareholders of record on February 15, 2010. The yield based on the new payout is 3.67%.

Nucor Corporation (NUE) the largest minimill steelmaker in the U.S. with one of the most diverse product lines of any steelmaker in the Americas. December 2nd the company raised its quarterly dividend 3% to $0.36/share. The dividend is payable on February 11, 2010 to stockholders of record on December 31, 2009. The ex-dividend date is December 29, 2009. Yield on the dividend is 3.2%. NUE is a Dividend Achiever and has increased its dividend for 36 consecutive years. The yield based on the new payout is 3.29%.

Universal Health Realty Income Trust (UHT) is a real estate investment trust invests in healthcare and human service related facilities. December 2nd the company boosts its quarterly dividend to $0.60/share. The dividend will be paid on December 31, 2009 to shareholders of record as of December 16, 2009. The yield based on the new payout is 7.86%.

Hillenbrand (HI) manufactures and sells gasketed caskets made of carbon steel, stainless steel, copper & bronze; offers a cremation marketing system for funeral service professionals. December 2nd the company increased its quarterly Dividend to $0.1875/share. The dividend is payable December 31, 2009, to shareholders of record at the close of business on December 17, 2009. The yield based on the new payout is 3.94%.

Comcast (CMCSA) is the largest U.S. cable multiple system operator (MSO), as well as a provider of cable programming content. December 3rd jumped its annual dividend 40% to $0.378/share. The dividend is payable on January 27, 2010 to shareholders of record as of the close of business on January 6, 2010. The yield based on the new payout is 2.38%.

Cameco Corporation (CCJ) explores, develops, mines, refines, converts, and fabricates uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and globally. December 3rd the company increased it annual dividend 17% to $0.28/share. The company’s board of directors also declared a quarterly cash dividend of $0.06 per common share, payable on January 15, 2010 to shareholders of record on December 31, 2009. The yield based on the new payout is 0.71%.

OGE Energy (OGE) delivers and manages electricity and natural gas primarily in the south central United States. December 3 the company raised its annual dividend to $1.45/share. The dividend will be paid Jan. 29, 2010, to shareowners of record Jan. 8, 2010. The yield based on the new payout is 4.05%.

Ecolab (ECL) is the leading worldwide marketer of cleaning, sanitizing and maintenance products and services for the hospitality, institutional and industrial markets. December 3rd the company boosted its quarterly 11% to $0.155/share. The dividend will be paid January 15, 2010, to shareholders of record at the close of business on December 15, 2009. The ex-dividend date is December 11, 2009. ECL is a Dividend Achiever and has increased its dividend for 18 consecutive years. The yield based on the new payout is 1.37%.

Earnings can be manufactured, cash can not. One sign of a company’s ability to generate cash is an ever-increasing dividend. For a list of stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: Long NUE. 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)