Dividends Value » HON

22 Dividend Stocks Building Long-Term Returns *

D4L — Fri, 17 Dec 2010 07:30:38 +0000

Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company’s increasing intrinsic value. Great companies that increase dividends tend to have rising share prices over time. Holding only first-rate businesses protects your dividend streams and helps ensure you’ll also get steady price appreciation.

Below are several companies building future returns with higher cash dividends:

BCE (BCE) is a Canadian wireline and wireless telecommunications company. December 10th the company raised its annual dividend 7.7% to $1.97/share. The dividend is payable on April 15, 2011 to shareholders of record at the close of business on March 15, 2011. The ex-dividend date is March 11, 2011. The yield based on the new payout is 5.5%.

Occidental (OXY) has global exploration and production operations. Its subsidiary, OxyChem, is one of the largest U.S. merchant marketers of chlorine and caustic soda. December 10th the company increased its quarterly dividend 21% to $0.46/share. The yield based on the new payout is 2.02%.

General Electric (GE) sells products ranging from jet engines and gas turbines to consumer appliances, railroad locomotives and medical equipment. It also owns NBC Universal, and is a leading provider of consumer and commercial financing. December 10th the company raised its quarterly dividend 17% to $0.14/share. The dividend is payable on Jan. 25 to shareholders of record on Dec. 27. The ex-dividend date is Dec. 22. The yield based on the new payout is 3.27%.

Honeywell (HON) is the world’s largest maker of cockpit controls, small jet engines and climate control equipment and also makes industrial materials and automotive products. December 10th the company increased its annual dividend 10% to $1.33/share. The yield based on the new payout is 2.55%.

Horace Mann (HMN) is an insurance holding company that markets and underwrites personal lines of property and casualty insurance, retirement annuities and life insurance. December 10th the company raised its quarterly dividend 37% to $0.11/share. The dividend is payable on Dec. 31 to shareholders on record as of Dec. 20. The ex-dividend date is Dec. 16. The yield based on the new payout is 2.48%.

Iron Mountain (IRM) provides information protection and storage services. December 13th the company increased its quarterly dividend 200% to $0.1875/share. The dividend is payable on January 14, 2011 to stockholders of record on December 27, 2010. The ex-dividend date is December 23, 2010. The yield based on the new payout is 3.2%.

Dynex Capital (DX) invests principally in single-family residential and commercial mortgage loans and securities. December 13th the company raised its quarterly dividend 8% to $0.27/share. The dividend is payable on January 31, 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 9.5%.

Pfizer (PFE) is the world’s largest pharmaceutical company. It produces a wide range of drugs across a broad therapeutic spectrum. December 13th the company increased its quarterly dividend 11.1% to $0.20/share. The dividend is payable March 1, 2011, to shareholders of record at the close of business on February 4, 2011. The ex-dividend date is February 2, 2011. The yield based on the new payout is 4.68%.

CSC (CSC) is a computer services company provides consulting, systems integration and outsourcing services. December 13th the company raised its quarterly dividend 33% to $0.20/share. The dividend is payable on January 13, 2011 to stockholders of record at the close of business on December 23, 2010. The ex-dividend date is December 21, 2010. The yield based on the new payout is 1.7%.

Colony Financial (CLNY) operates as a commercial mortgage REIT that focuses on acquiring and originating commercial real estate mortgage loans and real estate-related debt. December 13th the company increased its quarterly dividend 20% to $0.30/share. The dividend is payable on January 14, 2011, to stockholders of record on December 31, 2010. The ex-dividend date is December 29, 2010. The yield based on the new payout is 6.1%.

Bristol-Myers Squibb (BMY) engages in discovering, developing, and delivering medicines that help patients prevail over serious diseases. December 14th the company raised its quarterly dividend to $0.33/share. The dividend is payable on February 1, 2011, to stockholders of record at the close of business on January 7, 2011. The ex-dividend date is Jan. 5. The yield based on the new payout is 4.97%.

U-Store-It Trust (YSI) engages in the ownership, operation, acquisition, and development of self-storage facilities in the United States. December 14th the company increased its quarterly dividend 180% to $0.07/share. The dividend is payable on January 21, 2011 to common shareholders of record on January 7, 2011. The yield based on the new payout is 3.1%.

NB&T Financial (NBTF) provides commercial banking and financial services to individuals and corporate customers in southwestern Ohio. December 14th the company raised its quarterly dividend 3.5% to $0.30/share. The dividend is payable January 24, 2011 to shareholders as of record December 31, 2010. The ex-dividend date is December 29, 2010. The yield based on the new payout is 5.3%.

Realty Income (O) leases its retail properties primarily to regional and national retail chain store operators. December 15th the company increased its monthly dividend to $0.14425/share. The dividend is payable on January 18, 2011 to shareholders of record as of January 3, 2011. The ex-dividend date is December 31, 2010. O is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 5.2%.

Scholastic Corp. (SCHL) publishes and distributes childrens books, as well as the develops educational technology products in the United States and internationally. December 15th the company raised its quarterly dividend 33% to $0.10/share. The dividend is payable on March 15, 2011 to shareholders of record as of the close of business on January 31, 2011. The ex-dividend date is January 27, 2011. The yield based on the new payout is 1.3%.

Moodys Corp (MCO) provides credit ratings and related research, data, and analytical tools; risk management software; and quantitative credit risk measures and credit portfolio management solutions. December 15th the company increased its quarterly dividend 9.5% to $0.115/share. The dividend is payable March 10, 2011 to stockholders of record at the close of business on February 20, 2011. The ex-dividend date is February 17, 2011. The yield based on the new payout is 1.7%.

ABM Industries (ABM) provides janitorial, parking, security, engineering, and lighting services for commercial, industrial, institutional, and retail facilities in the U.S. and Canada. December 16th the company raised its dividend 3.7% to $0.14/share. The dividend is payable on February 7, 2011 to stockholders of record on January 6, 2011. The ex-dividend date is January 4, 2011. ABM is a Dividend Achiever and has raised its dividend for 16 consecutive years.

Ensign Group (ENSG) provides skilled nursing and rehabilitative care services in California, Arizona, Texas,Washington, Utah, Colorado, and Idaho. December 16th the company raised its quarterly dividend 10% to $0.055/share. December 16, 2010 7:26 AM EST The Ensign Group, Inc. (Nasdaq: ENSG) has declared a quarterly cash dividend of $0.055 per share, $0.22 annualized. The yield based on the new payout is 1.0%.

Waste Management (WM) provides integrated waste management services in North America including collection, transfer, recycling, disposal, and waste-to-energy services. December 16th the company increased its quarterly dividend 8% to $0.34/share. The yield based on the new payout is 3.8%.

Autoliv (ALV) develops, manufactures, and supplies automotive safety systems to automotive industry. December 16th the company increased its quarterly dividend 14% to $0.40/share. The dividend is payable on Thursday, March 3, 2011 to shareholders of record on the close of business on Thursday February 3, 2011. The ex-dividend date is February 1, 2011. The yield based on the new payout is 2%.

Pentair (PNR) operates as a diversified industrial manufacturing company worldwide. The company’s Water segment offers products and systems that are used in the movement, storage, treatment, and enjoyment of water. December 16th the company raised its annual dividend 5% to $0.80/share. PNR is a Dividend Achiever and has raised its dividend for 34 consecutive years. The yield based on the new payout is 2.2%.

Urstadt Biddle (UBA) engages in the acquisition, ownership, and management of commercial real estate properties. December 16th the company increased its quarterly dividend to $0.245/share. The dividend is payable January 21, 2011 to stockholders of record on January 7, 2011. The ex-dividend date is January 5, 2011. UBA is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 5.2%.

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

(Photo Credit)

Are Defense Stocks Good Defensive Stocks? *

D4L — Wed, 03 Jun 2009 10:30:39 +0000

When the economy and the market starts heading south, many investors start buying Dividend Stocks. They have long been considered a defensive position in turbulent times. Given many investors recent defensive stance, one might ask how about some real defense stocks, as in the Aerospace and Defense industry. Here are five for your consideration:

Honeywell International Inc. (HON)
The company is the world’s largest maker of cockpit controls, small jet engines and climate control equipment, HON also makes industrial materials and automotive products. HON has an attractive yield of over 3.5%, but with only two consecutive years of dividend increases this defense stock misfired as a defensive stock.

Northrop Grumman Corp. (NOC)
NOC is the world’s third largest producer of military arms and equipment, and also has a large government IT services business. NOC is another stock with a good yield of around 3.5%, but with only five years of consecutive dividend increases it is too early to invite it into my income portfolio.

The Boeing Co. (BA)
The company is the world’s second largest commercial jet and military weapons manufacturer, and the U.S.’s largest exporter. BA has an impressive dividend yield close to 4%, but with only five years of consecutive dividend increases, I am not ready to fly solo with it.

General Dynamics Corp (GD)
General Dynamics is the world’s sixth largest military contractor and also one of the world’s biggest makers of corporate jets. This Dividend Achiever’s stock is currently yielding a little over 2.5% and has increased its dividend for the last 15 years. I was very high on GD back when I did this analysis, but with its recent increase in share price and drop in yield, I am waiting for a more favorable entry point.

United Technologies Corp (UTX)
UTX is an aerospace-industrial conglomerate whose portfolio includes Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators, and Carrier air conditioners, among other products. This Dividend Achiever’s stock is currently yielding around 3% and has increased its dividend for the last 17 years. See my most recent analysis.

Aerospace and defense companies that do a lot of government work usually enjoy long contracts and are in a good position to weather economic downturns. However, to varying degrees, each of the above companies also is engaged in non-government commercial business that will be more affected by the economic downturn. There is certainly a spot for aerospace and defense in my income portfolio, but I will wait for the right time and entry price.

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

3M (MMM) and Manulife (MFC) Answer The Leadership Call *

D4L — Fri, 13 Feb 2009 11:30:51 +0000

When the world appears to be collapsing in around you and things look their darkest, it is then when character is determined and leaders rise to the top. On Tuesday, U.S. Treasury Secretary Timothy Geithner called for a new program that combines public and private capital to be used in a fund that will buy troubled assets of up to $1 trillion, aimed at unfreezing credit markets. The the markets were underwhelmed. Many companies, such as Harley-Davidson (HOG) and Dow Chemical (DOW), used this smoke screen to slash dividends, but in the midst of the turmoil, an American Aristrocrat and a Canadian Achievier stood tall.

3M Co. (MMM) is a diversified global company has operations in electronics, health care, industrial, consumer and office, telecommunications, safety and security, and other markets. On Wednesday its Board declared a dividend of $0.51/share, a 2% increase. The dividend is payable on March 12, 2009, to shareholders of record at the close of business on February 20, 2009. This is the 51st consecutive year the company has increased its dividend. 3M’s Board also approved an extension to the company’s $7 billion share repurchase authorization which would have expired this month. The stock’s dividend yield is over 4%.

Manulife Financial (MFC) is a Canadian insurer that is among the world’s largest life insurers, offering products and services mostly in North America and Asia. On Thursday, its Board of Directors declared a quarterly dividend of $0.26/share, payable on and after March 19, 2009 to shareholders of record at the close of business on February 25, 2009. The stock’s dividend yield is 5.80%. (stock analysis)

Other companies flexing their financial muscles with higher dividends include:

Compass Minerals (CMP) Raises Qtr. Dividend to $0.355/share (yield 2.36%)
QNB Corp. (QNBC) Increases Dividend to $0.355 (yield 2.36%)
Terra Nitrogen (TNH) Boosts Qtr. Dividend by 6% to $2.97/unit (yield 10.66%)
Northeast Utilities (NU) Raises Qtr. Dividend by 11.7% to $0.2375/share (yield 4.03%)
Sigma-Aldrich (SIAL) Increases Qtr. Dividend by 11.5% to $0.145/share (yield 1.51%)
Progress Energy (PGN) Boosts Qtr. Dividend to $0.62/share (yield 6.47%)
Honeywell (HON) Raises Quarterly Dividend to $0.3025/share (yield 3.80%)
APCapital (ACAP) Increases Quarterly Dividend 10% to $0.11/share (yield 0.98%)
Robert Half International (RHI) to Bumps Quarterly Dividend 9% to $0.12 (yield 2.7%)

Finally, the reining dividend champion, Diebold (DBD) increased its dividend 4% to %0.26/share for the company’s 56th consecutive year. The company develops, makes, and services self-service transaction systems, electronic & physical security systems, and software used to equip bank facilities, voting terminals. The stock’s dividend yield is 4.22%.

For other companies around the world with a string of consecutive dividend increases still in tact, see Dividends Value’s Stock Ideas page.

Full Disclosure: Long MFC, PGN

(Photo: Steve Woods)

Big Names, Big Dividend Increases *

D4L — Fri, 19 Dec 2008 11:30:00 +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 big-name companies compounding their dividends by raising their cash distributions to shareholders:

Honeywell (HON) Boosts Qtr. Dividend 10% to $1.21/Share (3.50%)
AT&T (T) Raises Qtr. Dividend by 2.5% to $0.41/Share (6.05%)
Waste Management (WMI) to Increase Qtr. Dividend by 7.4% to $0.29/Share (3.48%)
Boeing (BA) Raises Qtr. Dividend by 5% to $0.42/Share (4.21%)
Eli Lilly (LLY) Increase Qtr. Dividend from $0.47 to $0.49 (5.45%)
ITT (ITT) Management To Recommend 22% Dividend Increase (1.58%)
BB&T (BBT) Boosts Qtr. Dividend 2.2% to $0.47/Share (6.58%)

LLY was reviewed on 7/7/2008. However, I currently rate it as a 5 Star-Strong Buy. BBT was reviewed on 6/23/2008 with a 4-Star Buy rating.

After running the remaining companies through my D4L-PreScreen.xls model, the Dividend Achiever T with a NPV of MMA Differential of $8,911 is one that I have on my watch list. WMI with a

NPV of MMA Differential of $5,991, BA with a NPV of MMA Differential of $18,730 and ITT with a NPV of MMA Differential of $17,946 are ones worthy of additional consideration. None of the other companies’ NPV of MMA Differentials were close enough to warrant a more complete evaluation.

Disclosure: Long LLY, BBT.

(Photo: Steve Woods)