Dividends Value » HSY

16 Dividend Stocks Growing Future Yield *

D4L — Fri, 04 Feb 2011 07:30:03 +0000

Yield does not come without a price, usually in the form of added risk and/or complexity. Ultimately, dividend growth investors realize that long-term and sustainable high-yield investments are grown over time. This is accomplished by purchasing high-quality dividend investments with a reasonable yield and a long history of growing their dividends, and waiting for the yield on cost to grow.

Below are several companies planting the seeds for future yield by recently increasing their cash dividends:

Quality Systems Inc. (QSII) develop and market computer-based practice management, electronic health records and revenue cycle management applications. January 28th the company increased its quarterly dividend 17% to $0.35/share. The dividend is payable on April 5, 2011. The yield based on the new payout is 1.7%.

Limited Brands (LTD) operates 2,662 specialty stores in the United States and its brands are sold in more than 700 company-operated and franchised additional locations world-wide. January 28th the company raised its quarterly dividend 33% to $0.20/share. The dividend is payable on March 11, 2011, to shareholders of record at the close of business on Feb. 25, 2011. This is the company’s 145th consecutive quarterly dividend. The yield based on the new payout is 2.7%

Commerce Bancshares (CBSH) operates as the bank holding company for Commerce Bank, N.A. that provides various general banking services to individuals and businesses. January 28th the company increased its quarterly dividend 2.2% to $0.23/share. The dividend is payable on March 28, 2011 to stockholders of record at the close of business on March 11, 2011 and marks the 43rd consecutive year that the company has increased total dividends per adjusted shares. The yield based on the new payout is 2.2%.

Regis Corporation (RGS) is the beauty industry’s global leader in beauty salons, hair restoration centers and cosmetology education. January 31st the company increased its quarterly dividend 50% to $0.06/share. The dividend is payable on February 24, 2011, to shareholders of record as of February 10, 2011. The yield based on the new payout is 1.4%.

Time Warner (TWX) is a global leader in media and entertainment with businesses in television networks, filmed entertainment and publishing. February 2nd the company raised its quarterly cash dividend of 11 percent to $0.235/share. The dividend is payable in on March 15, 2011 to stockholders of record at the close of business on February 28, 2011. The yield based on the new payout is 2.6%.

Apartment Investment and Management Company (AIV) is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the 20 largest markets in the United States. February 2nd the company increases its quarterly common dividend 20% to $0.12/share.The dividend is payable on February 28, 2011, to stockholders of record on February 18, 2011. The yield based on the new payout is 1.9%.

Nu Skin Enterprises, Inc. (NUS) is a global direct selling company, Nu Skin operates in 51 markets worldwide and has nearly 800,000 independent distributors. February 2nd the company raised its quarterly dividend 8% to $0.135/share. the dividend is payable on March 16, to shareholders of record on Feb. 25. The yield based on the new payout is 1.8%

The Hershey Company (HSY) engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. February 2nd the company increased its quarterly dividend of $0.345/share. The dividends are payable on March 15, 2011, to stockholders of record as of February 25, 2011. The yield based on the new payout is 2.8%

Mattel, Inc. (MAT) engages in the design, manufacture, and marketing of various toy products worldwide. February 2nd the company raised its quarterly dividend 11% to $0.23/share. The yield based on the new payout is 3.8%.

Avery Dennison Corporation (AVY) a global leader in pressure-sensitive technology and materials, retail branding and information solutions. February 2nd the company increased its quarterly dividend 25% to $0.25/share. The dividend is payable March 16, 2011 to shareholders of record on March 2, 2011. The yield based on the new payout is 2.4%

Unitrin, Inc. (UTR) is a diversified insurance holding company, with subsidiaries that principally provide life, auto, homeowners and other insurance products for individuals and small businesses. February 2nd the company raised its quarterly dividend to $0.24/share. The dividend is payable on February 28, 2011 to its shareholders of record as of February 11, 2011. The yield based on the new payout is 3.5%.

Ross Stores, Inc. (ROST) is the nation’s second largest off-price retailer offering first-quality, in-season, name brand and designer apparel, accessories, footwear and home fashions for the entire family. February 3rd the company increased its quarterly dividend 38% to $0.22/share. The dividend is payable on March 31, 2011 to stockholders of record as of February 18, 2011. The yield based on the new payout is 1.2%.

Hasbro, Inc. (HAS) is a branded play company providing children and families around the world with a wide-range of immersive entertainment offerings. February 3rd the company raised its quarterly dividend 20% to $0.30/share. The dividend will be payable on May 16, 2011 to shareholders of record at the close of business on May 2, 2011. The yield based on the new payout is 2.7%.

Avon Products, Inc. (AVP) manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care and personal care. February 3rd the company increased its quarterly dividend 4.5% to $0.23/share. The dividend is payable March 1, 2011, to shareholders of record February 17, 2011. The yield based on the new payout is 3.2%.

Enbridge Inc. (ENB) engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. February 3rd the company increased its quarterly dividend 15% to $0.49/share effective March 1, 2011. Patrick D. Daniel, President and Chief Executive Officer stated, “Few peers can match Enbridge’s track record of consistently increasing its dividend. Over the past ten years, we have delivered an average annual dividend increase of 11%,” said Mr. Daniel. “With our adjusted earnings per share growth rate anticipated to grow at an average rate of 10% through the middle of this decade, and with cash flow growing even more rapidly, we expect to be able to continue delivering exceptional dividend growth to our investors.” The yield based on the new payout is 3.4%.

J.B. Hunt Transport Services, Inc. (JBHT) operates as a surface transportation and delivery services company in North America. February 3rd the company raised its quarterly dividend to $0.13 cents/share payable to stockholders of record on February 15, 2011. The dividend will be paid on February 25, 2011. The yield based on the new payout is 1.3%

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

(Photo Credit)

16 Dividend Stocks Aspiring To Be A Champion *

D4L — Fri, 05 Feb 2010 11:30:46 +0000

There are winners and there are champions in every walk of life. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions. A bad economy, tight credit markets and a dark cloud of uncertainty are enough send some dividend companies running for the exit. However, these are the times that champions stand firm.

This week a several companies answered the call and rewarded their shareholders with higher cash dividends:

CMS Energy (CMS) is the largest utility in Michigan and the sixth largest gas and 13th largest electric utility in the U.S. January 29th the company increased its quarterly dividend to $0.15/share. The dividend is payable Feb. 26, 2010 to shareholders of record on Feb. 8, 2010. The ex-dividend date is February 4, 2010. The yield based on the new payout is 3.91%.

HCP (HCP) holds direct and joint venture investments in health care-related facilities across the U.S. February 1st the company increased its quarterly dividend to $0.465/share. The dividend will be paid on February 23, 2010 to stockholders of record as of the close of business on February 11, 2010. The ex-dividend date is February 9, 2010. The yield based on the new payout is 6.36%.

Source Capital (SOR) is a diversified closed-end management investment company. February 1st the company boosted its quarterly dividend 20% to $0.60/share. The dividend is payable Mar. 15, 2010, to shareholders of record as of the close of business Feb. 19, 2010. The yield based on the new payout is 5.65%.

Hershey (HSY) is a major producer of chocolate and confectionery products. February 2nd the company increased its quarterly dividend to $0.32/share. The dividend is payable March 15, 2010, to stockholders of record February 25, 2010. The yield based on the new payout is 3.45%.

L-3 Comm (LLL) is a provider of intelligence, surveillance, and reconnaissance systems. February 2nd the company raised its quarterly dividend to $0.40/share. The dividend is payable on March 15, 2010 to shareholders of record at the close of business on March 1, 2010. The ex-dividend date is February 25, 2010. The yield based on the new payout is 1.84%

Unitrin (UTR) provides property and casualty insurance, life and health insurance, and automobile finance services. February 3rd the company boosted its quarterly dividend 10% to $0.22/share. The dividend is payable on March 1, 2010 to its shareholders of record as of February 12, 2010. The ex-dividend date is February 10. The yield based on the new payout is 3.86%

News Corp (NWS) is a media conglomerate, with controlling interests in leading content and distribution assets across the globe, including Fox Entertainment. February 3rd the company increased its semi-annual dividend 25% to $0.075/share. The dividend is payable on April 14, 2010 with a record date for determining dividend entitlements of March 10, 2010. The ex-dividend date is March 8, 2010. The yield based on the new payout is 0.94%

Ross Stores (ROST) is an off-price retailer providing in-season branded apparel and other merchandise through over 1,000 stores in 27 states and Guam. February 4th the company raised its quarterly dividend 45% o $0.16/share. The dividend is payable on March 31, 2010 to stockholders of record as of February 19, 2010. The ex-dividend date is February 17, 2010. ROST is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 1.41%.

AGL Resources (AGL) is an energy services holding company provides natural gas to about 2.3 million customers. February 4th the company boosted its quarterly dividend 2.3% to $0.44/share. The dividend is payable March 1, 2010, to shareholders of record at the close of business on February 19, 2010. The yield based on the new payout is 5.00%.

PennantPark Investment (PNNT) specializes in direct and mezzanine investments in middle-market companies. February 4th the company increased its quarterly dividend to $0.26/share. The dividend is payable on April 1, 2010 to stockholders of record as of March 25, 2010. The ex-dividend date is March 23, 2010. The yield based on the new payout is 11.60%.

Archer Daniels Midland (ADM) is one of the world’s leading agribusiness companies, with major market positions in agricultural processing and merchandising. February 4the the company raised its quarterly dividend to $0.15/share. The dividend is payable March 11, 2010, to stockholders of record February 18, 2010. The ex-dividend date is February 16. ADM is a Dividend Aristocrat and has raised its dividend for 35 consecutive years. The yield based on the new payout is 2.00%.

Colgate-Palmolive (CL) is a consumer products company markets oral, personal and household care, and pet nutrition products. February 4th the the company boosted its quarterly dividend 20% to $0.53/share. The dividend will be paid on May 14, 2010 to shareholders of record as of April 26, 2010. The ex-dividend date is April 22. On an annual basis, the new dividend rate is $2.03 vs. $1.72 per share previously. CL is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 2.66%.

UPS (UPS) is the world’s largest express delivery company. February 4th the company increased its quarterly dividend to $0.47/share. The dividend is payable March 3, 2010, to shareholders of record on Feb. 16, 2010. The yield based on the new payout is 3.28%.

Hasbro (HAS) is a large toy company has brands that include Monopoly, Playskool and Tonka. February 4th the company raised its quarterly dividend by 25% to $0.25/share. The dividend will be payable on May 17, 2010 to shareholders of record at the close of business on May 3, 2010. The ex-dividend date is April 30. The yield based on the new payout is 3.20%.

J. B. Hunt Transport Services (JBHT) provides truckload, intermodal, and contract carriage services. February 4th the company boosted its quarterly dividend $0.12/share. The dividend is payable to stockholders of record on February 12, 2010. The dividend will be paid on February 26, 2010. The yield based on the new payout is 1.58%.

D&B (DNB) is a worldwide provider of business information and related decision support services and commercial receivables management services. February 4th the company increased its quarterly cash dividend to $0.35/share. This quarterly cash dividend is payable on March 18, 2010, to shareholders of record at the close of business on March 3, 2010. The yield based on the new payout is 1.80%.

To be a true dividend champion, a stock must consistently raise its dividend over more than just a few years. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

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

(Photo Credit)

The Dividend Freeze *

D4L — Fri, 11 Sep 2009 10:30:15 +0000

As summer turns to fall and the heat begins to moderate, winter and its freezing temperatures are just around the corner. However, some companies have been frozen in place for the last year; more specifically, their dividends have been frozen at the same rate for more than a year.

A lot of press is given to companies cutting their dividends. In this spot we normally look at dividend increases. However, this week there were none. So let’s look at some companies that have opted to neither raise nor cut their dividends, but instead freeze them at the current rate. Here are 13 select companies with 25 or more years of consecutive dividend increases that have not raised their dividends in the last 12 months:

American States Water (AWR)
This utility primarily serves water customers in California, as well as in Arizona. It also provides electric service to a small section of San Bernardino County.
Last Increase: 11/7/2007 – Years of Consecutive Increases: 54

Parker-Hannifin Corp. (PH)
This company is a global maker of industrial pumps, valves, and hydraulics. Its products are used in everything from jet engines to trucks and autos and utility turbines.
Last Increase: 8/21/2008 – Years of Consecutive Increases: 52

Illinois Tool Works (ITW)
This diversified manufacturer operates a portfolio of about 750 industrial and consumer businesses located throughout the world.
Last Increase: 9/26/2008 – Years of Consecutive Increases: 45

Tennant Company (TNC)
This company designs, manufactures, and markets cleaning solutions.
Last Increase: 2/27/2008 – Years of Consecutive Increases: 37

Mine Safety Appliances (MSA)
This company develops, manufactures and supplies products that protect people’s health and safety. Products include self-contained breathing apparatus and gas masks.
Last Increase: 5/21/2008 – Years of Consecutive Increases: 37

Helmerich & Payne Inc. (HP)
This company offers contract drilling services for oil and gas wells in the United States and internationally.
Last Increase: 8/13/2008 – Years of Consecutive Increases: 37

United Bankshares Inc. (UBSI)
This multi-bank holding company operates 114 full service offices inWest Virginia, Virginia, Maryland, Ohio andWashington, DC.
Last Increase: 12/12/2007 – Years of Consecutive Increases: 35

CenturyLink Inc. (CTL)
This telecom company has operations concentrated in rural markets in Alabama, Arkansas, Louisiana, Missouri, and Wisconsin. CTL acquired larger peer Embarq in a stock deal in July 2009.
Last Increase: 9/5/2008 – Years of Consecutive Increases: 35

Gorman-Rupp Company (GRC)
This company manufactures pumps and related equipment for water, wastewater, construction, industrial, petroleum, fire protection, military and other liquid-handling applications.
Last Increase: 2/13/2008 – Years of Consecutive Increases: 34

Chemical Financial (CHFC)
This holding company owns Chemical Bank, which provides commercial banking products and services through 129 banking offices, 141 ATMs and 2 loan production offices in Michigan.
Last Increase: 2/27/2008 – Years of Consecutive Increases: 34

Hershey Company (HSY)
Hershey is a major producer of chocolate or confectionery products.
Last Increase: 8/22/2007 – Years of Consecutive Increases: 33

Johnson Controls Inc. (JCI)
This company supplies building controls and energy management systems, automotive seating, and batteries.
Last Increase: 12/12/2007 – Years of Consecutive Increases: 33

M&T Bank Corp. (MTB)
This bank holding company for M&T Bank has offices in New York, Pennsylvania, Maryland, Virginia,West Virginia, New Jersey, Delaware, andWashington, DC.
Last Increase: 8/30/2007 – Years of Consecutive Increases: 27

Needless to say, each of the above companies’ string of consecutive dividend increases is in jeopardy, and none of the stocks are on my current buy list. To the contrary, the ones I own are being closely monitored for a potential sell. Though this list might seem long, here is a much longer list of companies that have kept their streak alive.

Full Disclosure: Long CTL, ITW. See a list of all my income holdings here.

(Photo Quentin Houyoux)

Five Dividend Stocks With Different Reasons Not To Buy *

D4L — Wed, 05 Aug 2009 10:30:06 +0000

Sometimes good companies aren’t good buys, and this is not always a bad thing. Often it is a result of the market over reacting in a positive direction. The stocks simply become overvalued, but their underlying fundamentals remain excellent. Below are a couple of companies that fall into this group:

Illinois Tool Works Inc. (ITW) – Yield: 3.06% – 2 Stars – Analysis
Illinois ToolWorks Inc. is a diversified manufacturer operates a portfolio of about 750 industrial and consumer businesses located throughout the world. As you can see for the information below, price is all that is keeping ITW from being a 4 Star stock:

Recent Price: $40.00
3 Star Price: $38.99
4 Star Price: $36.20

3M Co (MMM) – Yield: 2.89% – 2 Stars – Analysis
3M Co. is a diversified technology company with a presence in various businesses, including industrial & transportation, healthcare, display & graphics, consumer & office, safety, security & protection services, and electro and communications. Like ITW above, price is all that is keeping MMM from being a 4 Star stock:

Recent Price: $72.00
3 Star Price: $57.44
4 Star Price: $44.43

I was fortunate to purchase both of the stocks above when their prices were much lower, so I can’t complain that they are no longer 4 Star buys. However, for other companies the road to fewer stars is not as appealing. Instead of a significant run up in their share price, the run up may have occurred in their debt or dividend payout percentage, or both. Here are some dividend companies and the challenges they are facing:

BP Plc (BP) – Yield: 6.50% – 1 Star
This supermajor integrated oil company (formerly BP Amoco p.l.c.) is based in London and is the world’s second largest publicly owned oil company and the fourth largest U.S. refiner. With Debt to Total Capital at an acceptable level and Free Cash Flow Payout at an undesirable level, a 3 Star rating is the best BP could earn at any price.

Debt to Total Capital: 27%
Free Cash Flow Payout: 69%
Recent Price: $50.00
3 Star Price: $1.00

SUPERVALU Inc. (SVU) – Yield: 4.67% – 0 Stars
SUPERVALU INC. is one of the largest U.S. food wholesalers, this company is also one of the biggest supermarket retailers in the U.S. With Debt to Total Capital at an undesirable level and Free Cash Flow Payout at an acceptable level (but with some years negative), a 3 Star rating is the best SVU could earn at any price.

Debt to Total Capital: 73%
Free Cash Flow Payout: 42%
Recent Price: $15.00
2 Star Price: $14.75
3 Star Price: $1.00

The Hershey Company (HSY) – Yield: 2.89% – 0 Stars
The Hershey Company engages in the manufacture, marketing, distribution, and sale of various types of chocolate and confectionery, refreshment and snack products, and food and beverage enhancers in the United States and internationally. With both Debt to Total Capital and Free Cash Flow Payout at undesirable levels, a 2 Star rating is the best HSY could muster at any price.

Debt to Total Capital: 83%
Free Cash Flow Payout: 88%
Recent Price: $40.00
2 Star Price: $1.00

Of the three, I believe BP stands the best chance of recovery. Though BP recently froze its dividend at $0.84/share (ADR), higher oil prices should lead to higher FCF and a dividend increase, it could easily add a fourth Star and once again enter the buy zone. I don’t have a lot of confidence in the other two.

Before buying a stock with hopes things will soon improve, it is a good idea to run some sensitivities to see where, or if, the stock can make a recovery. Modeling is cheap, selling an undesirable stock usually isn’t.

Full Disclosure: Long ITW, MMM, BP. See a list of all my income holdings here.