Dividends Value » LMT

9 Dividend Stocks Giving Shareholders A Raise *

D4L — Fri, 24 Sep 2010 07:30:33 +0000

When evaluating a company as a potential income investment you look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared to alternative “safe” investments. The advantages dividend stocks have over “safe” investments are potential capital appreciation and dividend growth. Not only are your earnings compounding, but the rate of earnings is growing.

Below are several companies giving their shareholders a raise with increased cash dividends:

Invesco Mortgage Capital (IVR) focuses on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans. September 20th the company increased its quarterly dividend 35% to $1.00/share. The dividend is payable on October 27, 2010 to shareholders of record on September 30, 2010. The ex-dividend date is September 28, 2010. The yield based on the new payout is 17.59%.

Arlington Asset Investment (AI) invests in mortgage-related assets. September 21st the company raised its quarterly dividend 71.4% to $0.60/share. The dividend is payable on October 29, 2010 to shareholders of record on September 30, 2010. The ex-dividend date is September 28, 2010. The yield based on the new payout is 10.08%.

ConAgra Foods (CAG) is one of the largest U.S. packaged food processors. September 21st the company increased its quarterly dividend 15% to $0.23/share. The yield based on the new payout is 4.27%.

Microsoft (MSFT) is the world’s largest software company. It develops PC software, including the Windows operating system and the Office application suite. September 21st the company raised its quarterly dividend 23% to $0.16/share. The yield based on the new payout is 2.60%.

The First of Long Island Corp. (FLIC) provides financial services through its wholly-owned subsidiary, The First National Bank of Long Island. September 22nd the company increased its quarterly dividend 10% to $0.22/share. The dividend is payable on October 15, 2010 to shareholders of record on October 5, 2010. The ex-dividend date is October 1, 2010. The yield based on the new payout is 3.55%.

McDonald’s (MCD) is the largest fast-food restaurant company in the world, with about 32,500 restaurants in 117 countries. September 23rd the company raised its quarterly dividend 11% to $0.61/share. The dividend is payable on December 15, 2010 to shareholders of record at the close of business on December 1, 2010. The ex-dividend date is November 29, 2010. MCD is a Dividend Aristocrat and has raised its dividend for 34 consecutive years. The yield based on the new payout is 3.25%.

Covidien (COV) develops, manufactures and distributes medical devices and supplies, diagnostic imaging agents, pharmaceuticals and other health care products used in both clinical and home settings. September 23rd the company increased it quarterly dividend by 11% to $0.20/share.The dividend is payable on Nov. 8 to shareholders of record on Oct. 4. The ex-dividend date is Sept. 30. The yield based on the new payout is 2.04%.

Lockheed Martin (LMT) is the world’s largest military weapons manufacturer and is also a significant supplier to NASA and other non-defense government agencies. September 23rd the company raised its quarterly dividend 19% to $0.75/share. The dividend is payable on Dec. 31 to shareholders of record on Dec. 1. The ex-dividend date is Nov. 29. The yield based on the new payout is 4.17%.

Sanderson Farms (SAFM) in an integrated poultry processing company that produces, processes, markets and distributes fresh and frozen, processed, and prepared chicken products in the United States. September 23rd the company increased its quarterly dividend 13.3% to $0.17/share. The dividend is payable October 19, 2010, to stockholders of record on October 5, 2010. The ex-dividend date is October 1, 2010. The yield based on the new payout is 1.64%.

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

(Photo Credit)

http://dividendsvalue.com/4783/3-high-yield-telecom-dividend-stocks/

Six Double-Digit Dividend Stocks Increasing Their Yields *

D4L — Fri, 25 Sep 2009 10:30:51 +0000

After Wednesday’s article High-Yield, High-Risk Dividend Stocks, I had hoped to feature a few high-yield stocks raising their dividends this week. Patiently I watched the news wire for some announcements that fit the bill, and it didn’t take long. As if they were waiting for the cue, three high-yield stocks recently announced increased cash dividends for their shareholders:

Chimera Investment is a specialty finance company that invests in residential mortgage-backed securities (RMBS), residential mortgage loans, real estate-related securities and various other asset classes. Monday, CIM increased it quarterly dividend 50% to $0.12/share. The dividend is payable October 30, 2009 to common shareholders of record on October 1, 2009. The ex-dividend date is September 29, 2009. The current yield based on the new dividend is 11.82%.

Hatteras Financial (HTS) is an externally managed mortgage real estate investment trust (REIT) formed to invest in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities. Tuesday, the company raised its quarterly dividend 4.5% to $1.15/share. The dividend is payable on October 23, 2009, to stockholders of record on October 2, 2009, with an ex-dividend date of September 30, 2009. The current yield based on the new dividend is 13.94%.

Triangle Capital (TCAP) is a specialty finance company that provides customized financing solutions to lower middle market companies. Wednesday, the company bumped its quarterly dividend 2.5% to $0.41/share. The dividend is payable on October 22 to shareholders of record on October 8. The current yield based on the new dividend is 14.07%.

Though their yields are not double-digit, three additional companies provided double-digit dividend growth in their cash dividends:

The First of Long Island Corp. (FLIC) provides financial services through its wholly-owned subsidiary, The First National Bank of Long Island. Tuesday, the company increased its dividend 11% to $0.20/share. The dividend will be paid on October 9, 2009 to shareholders of record on October 2, 2009. To receive the dividend, you have to own the shares before September 30th. The current yield based on the new dividend is 2.98%.

Lockheed Martin (LMT) is the world’s largest military weapons manufacturer and is also a significant supplier to NASA and other government agencies. Thursday, the company raised its quarterly dividend 10.5% to $0.63/share. The dividend is payable Dec. 31, 2009 to holders of record as of the close of business on Dec. 1, 2009. The current yield based on the new dividend is 3.26%.

McDonald’s (MCD) is the leading global foodservice retailer with more than 32,000 local restaurants in more than 100 countries. Thursday, the company raised its quarterly dividend 10% to $0.55/share. The dividend is payable on December 15, 2009 to shareholders of record at the close of business on December 1, 2009.

MCD’s Chief Executive Officer Jim Skinner said, “So far in 2009 we’ve returned nearly $4.0 billion to shareholders through dividends and share repurchases, bringing total cash returned since the beginning of 2007 to about $15.5 billion. With today’s dividend increase, we expect to end the year near the high end of our three-year, $15 billion to $17 billion total cash return target.”

The stock is a Dividend Aristocrat and has increased its dividend 33 consecutive years. The current yield based on the new dividend is 3.92%. [Analysis]

For long-term dividend investors, a high-yield is not the most important factor to look for, instead that honor belongs to consistently growing dividends. For stocks with a long string of consecutive dividend increases, see this list.

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

(Photo Credit)

Investment Winners and Losers in an Obama Administration *

D4L — Thu, 06 Nov 2008 11:30:00 +0000

The election is over and no matter how you feel about Obama, he will be the next U.S. president. Some economists are projecting total government borrowing in excess of $1.5 trillion in the fiscal year ending next September. Such a sharp increase in new debt could push up interest rates and continue the downward pressure on the stock market. Even in a down market, there are always winners. Let’s take a look at some of the possibilities:

Energy
There is a belief that the new administration will channel money to the energy sector, such as solar energy and hybrid cars, as a way to stimulate the economy. Some possible beneficiaries include:

Suntech Power Holdings (STP)
SunPower Corp (SPWRA)
Energy Conversion Devices Inc. (ENER)

Defense
Against conventional wisdom, U.S. defense contractors tend to do well Democratic administrations. Winners would include:

Lockheed Martin (LMT)
Northrop Grumman (NOC)

Pharmaceuticals
With the credit crisis in the forefront, healthcare reform will likely be low on the priority list. That should provide stability for drug stocks and to investors seeking safety after a rough ride in the market. Stocks to consider:

Abbott Laboratories (ABT)
Eli Lilly and Co (LLY)
Pfizer Inc (PFE)

Financials
Banks may be the big losers in an Obama administration. There could be pressure put on banks to help borrowers avoid foreclosure by renegotiating mortgages. Also there could be pressure to lower fees on credit cards. Some banks that will feel the pressure include:

Bank of America Corp./Countrywide (BAC)
J.P. Morgan Chase & Co. (JPM)

Times will certainty be different, but it is important to remember a sound dividend investing philosophy historically has withstood the tests of time through both democratic and republican administrations. Don’t make the mistake of sitting on the sidelines.

Disclosure: Long LLY and PFE

References:
- How stock sectors might fare in an Obama administration
- U.S. Debt Could Tie Obama’s Hands

While the Market Roars as a Bear, Some Companies Stand Strong *

D4L — Thu, 02 Oct 2008 10:30:00 +0000

When most people hear the phrase “missed opportunities” they tend to reflect on past events and what could have been. By nature I am forward looking, so “missed opportunities” for me is the present and the future.

At some point in the future will we look back on our actions today and refer to them as our greatest missed opportunity? There is a lot of fear in the market. Not all companies are created the same. While the market roars as a bear to frighten the weak, some prominent companies stand strong.

Below are several select companies that recently flexed their muscles by raising their cash dividend:

Tyco Electronics (TEL) Ups Qtr. Dividend 14% to $0.16/Share (2.31% yield)
National Semiconductor (NSM) Raises Qtr. Dividend 33% to $0.08/Share (1.86% yield)
Lockheed Martin (LMT) Boosts Qtr. Dividend 36% to $0.57/Share (2.08%)
Campbell Soup (CPB) Increases Qtr. Dividend 14% to $0.25/Share (2.59%)
Accenture (ACN) Ups Qtr. Dividend 19% to $0.50/Share (1.32%)
McDonald’s (MCD) Raises Dividend 33% to $0.50/Share (3.14%)
CLARCOR (CLC) Boosts Qtr. Dividend 12.5% to $0.09/Share (0.85%)

After running these companies through my D4L-PreScreen.xls model, LMT with a NPV of MMA Differential of $5,412 was interesting, but cut its dividend by 50% in 2000. I hold MCD and it has performed well. However, I am not currently adding to my position due to its valuation. None of the others achieved the necessary NPV of MMA Differential to justify a full evaluation.

Disclosure: Long MCD.

(Photo: Steve Woods)