Dividends Value » MDU

12 Industrial Strength Dividend Stocks *

D4L — Wed, 16 Feb 2011 07:30:13 +0000

This is the third installment in a multi-part series that looks at different sectors that have traditionally been very friendly to dividend investors. Each of these sectors have attributes that make the companies in them potentially desirable to long-term buy-and-hold dividend growth investors. Understanding these attributes will hopefully help us to select the very best companies for our income portfolios. Last week we looked at Financial Services Sector. This week we are looking at Industrial Materials…

Industrial Materials Attributes

The Industrial Materials Sector consists of companies that manufacture products or otherwise harvest a product, such as a mining company. The products are most often inputs or raw materials into another manufacturing process, such as steel producer. Many of these companies are often referred to as members of the “smokestack industry” and are classified as cyclical stocks – a stock that rises and falls in step with the economy.

Timing is important when buying an industrial stock. If you buy when business is booming you will likely pay too much, which means a very low yield. Most stocks in this sector are currently overpriced. The average yield on Industrial Sector stocks that I follow is only 1.7%. This includes only 3 stocks yielding in the 3% range., with all the others sub-3%. Several of these sub-3% companies were yielding in excess of 4% in 2008 when the world looked bleak for Industrial stocks.

Industrial Materials Companies

Below are several leading Industrial Materials companies that I follow. The companies selected have a dividend yield of 2.00%, or higher, and have raised their dividends for at least 15 years.

RPM International Inc. (RPM)
Yield: 3.5% | Growth:2.5 % | Years: 38
RPM International Inc. makes specialty coatings and products for the structural waterproofing and corrosion control markets, as well as products for the consumer, do-it-yourself, and hobby markets.

MDU Resources Group Inc. (MDU)
Yield: 3.0% | Growth: 1.9% | Years: 20
MDU Resources Group Inc. is involved in electric and natural gas distribution, natural gas storage, gathering and transmission, construction materials and mining, and oil and natural gas production.

Nucor Corporation (NUE)
Yield: 3.0% | Growth: 0.8% | Years: 37
Nucor Corporation is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas.

PPG Industries, Inc. (PPG)
Yield: 2.5% | Growth: 1.9% | Years: 37
PPG is a leading manufacturer of coatings and resins, flat and fiber glass, and industrial and specialty chemicals.

Illinois Tool Works Inc. (ITW)
Yield: 2.3% | Growth: 4.8% | Years: 47
Illinois Tool Works Inc. is a diversified manufacturer that operates a portfolio of about 840 industrial and consumer businesses throughout the world.

3M Company (MMM)
Yield: 2.3% | Growth: 2.5% | Years: 52
3M Co. provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives, and other chemical additives.

Harsco Corporation (HSC)
Yield: 2.3% | Growth: 1.9% | Years: 20
Harsco Corp. is a global industrial service provider and manufacturer has operations in steel mill services and access services, as well as construction.

Emerson Electric Co. (EMR)
Yield: 2.2% | Growth: 2.2% | Years: 55
Emerson Electric Co. designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial, and consumer markets around the world.

Air Products And Chemicals Inc. (APD)
Yield: 2.2% | Growth: 2.1% | Years: 29
Air Products and Chemicals Inc. is a major producer of industrial gases and electronics and specialty chemicals and also has interests in environmental and energy-related businesses.

General Dynamics (GD)
Yield: 2.1% | Growth: 10.1% | Years: 19
General Dynamics is the world’s fifth largest military contractor and also one of the world’s biggest makers of corporate jets.

United Technologies Corp. (UTX)
Yield: 2.0% | Growth: 10.4% | Years: 18
United Technologies Corp. portfolio includes Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators and Carrier air conditioners, among other products.

Pentair, Inc. (PNR)
Yield: 2.0% | Growth: 5.6% | Years: 34
Pentair Inc. makes and markets water and fluid control devices, and electrical and electronic enclosures.

Conclusion

The Industrial Materials Sector is the largest sector in my database of dividend stocks. Of the 198 stocks that I track, it currently is represented by 34 stocks (17%). As noted above, this is not a sector I am in a position to buy often, but when the time is right, I plan on taking full advantage of the opportunity. Two of my largest annualized returns (IRR) come from industrial stocks: 3M (MMM) at 46.5% and Emerson Electric Co. (EMR) at 49.7%. I wouldn’t buy them at their current valuation, but based on where they were when I purchased them, I am enjoying a healthy yield-on-cost.

Full Disclosure: Long NUE, ITW, MMM, EMR, GD, UTX. See a list of all my income holdings here.

(Photo Credit)

13 Dividend Stocks Providing A Growing Income *

D4L — Fri, 12 Nov 2010 07:30:21 +0000

How much money will you need for retirement? This a very difficult question to answer. There are many factors and assumptions that go into estimating the income that will be needed in retirement. However, one certainty is that if you only invest in fixed income instruments, you will need more than if your investments provide you a growing income.

Below are several companies that are providing their shareholders a growing income through higher cash dividends:

Cinemark (CNK) is a motion picture exhibition company that operates in U.S., Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Colombia. November 5th the company increased its quarterly dividend 16.7% to $0.21/share. The dividend is payable on December 7, 2010 to stockholders of record on November 22, 2010. The ex-dividend date is November 18, 2010. The yield based on the new payout is 4.52%.

TELUS (TU) is a Canadian telecommunications company, providing a range of telecommunications products and services. November 5th the company raised its quarterly dividend 5% C$0.525/share. The yield based on the new payout is 4.81%.

Equifax (EFX) is a leading worldwide source of consumer and commercial credit information. November 8th the company increased its quarterly dividend 300% to $0.16/share. The dividend is payable on Dec. 15 to shareholders of record on Nov. 24. The ex-dividend date is Nov. 22. The yield based on the new payout is 1.84%.

Mesa Laboratories (MLAB) designs, manufactures, and markets instruments and disposable products for industrial applications and healthcare. November 8th the company raised its quarterly dividend 9.1% to $0.12/share. The dividend is payable December 15, 2010, to shareholders of record on November 29, 2010. The ex-dividend date is November 25, 2010. The yield based on the new payout is 1.88%.

Baxter Int’l (BAX) is a global medical products and services company provides critical therapies for people with life-threatening conditions. November 9th the company increased its quarterly dividend 7% to $0.31/share. The dividend is payable on January 5, 2011, to shareholders of record as of the close of business on December 10, 2010. The ex-dividend date is December 8, 2010. The yield based on the new payout is 2.40%.

Estée Lauder (EL) is one of the world’s leading manufacturers and marketers of skin care, makeup and fragrance products. November 9th the company raised its annual dividend 36% to $0.75/share. The dividend is payable on December 15, 2010 to stockholders of record at the close of business on November 29, 2010. The ex-dividend date is November 25, 2010. The yield based on the new payout is 1.06%.

Automatic Data Processing (ADP) is one of the world’s largest independent computing services companies and provides a broad range of data processing services. November 9th the company increased its quarterly dividend 6% to $0.36/share. The dividend is payable on January 1, 2011 to shareholders of record at December 10, 2010. The ex-dividend date is December 8, 2010. ADP is a Dividend Aristocrat and has raised its dividend for 35 consecutive years. The yield based on the new payout is 3.2%.

Timken (TKR) manufactures anti-friction bearings and assemblies, alloy steels and aerospace power transmission systems and provides related products and services. November 9th the company raised its quarterly dividend 38% to $0.18/share. The dividend is payable on December 2, 2010, to shareholders of record as of November 22, 2010. The ex-dividend date is November 18, 2010. The yield based on the new payout is 1.67%.

Prudential Financial (PRU) provides a wide range of insurance, investment management and other financial products and services to customers in the U.S. and overseas. November 9th the company increased its annual dividend 64% to $1.15/share. The dividend is payable on December 17, 2010, to shareholders of record at the close of business on November 23, 2010. The ex-dividend date is November 19, 2010. The yield based on the new payout is 2.10%.

Tennant (TNC) designs, manufactures, and markets cleaning solutions. November 9th the company raised its quarterly dividend 21% to $0.17/share. The dividend is payable on Dec. 15 to shareholders of record on Nov. 30. The ex-dividend date is Nov. 26. TNC is a Dividend Achiever and has raised its dividend for 36 consecutive years. The yield based on the new payout is 1.94%.

Equity LifeStyle Props (ELS) trust owns and operates manufactured housing communities throughout the U.S. November 9th the company increased its annual dividend 25% to $1.50 for 2011. Yield on the 2011 dividend is 2.58%.

AmerisourceBergen (ABC) is a distributor of pharmaceutical products and related health care services and was formed via the August 2001 merger of Amerisource Health Corp. and Bergen Brunswig Corp. November 11th the company raised its quarterly dividend 25% to $0.10/share. The dividend is payable December 6, 2010, to stockholders of record at the close of business on November 22, 2010. The ex-dividend date is November 18, 2010. The yield based on the new payout is 1.27%.

MDU Resources (MDU) is involved in electric and natural gas distribution, natural gas storage, gathering and transmission, construction materials and mining, and oil and natural gas production. November 11th the company increased its quarterly dividend 3.2% to $0.1625/share. The dividend is payable January 1, 2011 to stockholders of record December 9, 2010. The ex-dividend date is December 7, 2010. MDU is a Dividend Achiever and has raised its dividend for 20 consecutive years. The yield based on the new payout is 2.06%.

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

(Photo Credit)

9 Dividend Stocks Sending More Cash To Shareholders

D4L — Fri, 13 Nov 2009 10:30:17 +0000

We all are looking for the perfect dividend stock. In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate ratable with its increasing dividend. All of this would be driven by increasing earnings and cash flow.

Though they are not perfect, the stocks below did recently reward their investors with higher cash dividends:

Wynn Resorts (WYNN) is involved in the design, development, financing and construction of gaming projects in Las Vegas and Macau. November 9th the company declared a special cash dividend of $4.00/share. This dividend will be payable on December 3, 2009, to stockholders of record on November 19, 2009. The stock will begin to trade ex-dividend on November 17, 2009. The company’s Board of Directors also approved the commencement of a regular cash dividend program, beginning in 2010. This regular cash dividend will be $0.20 per share of common stock for the first quarter of 2010. The yield based on the new payout is 1.22%.

Baxter (BAX) is a global medical products and services company. November 10th the company increased its quarterly dividend 12% to $0.29/share. The dividend is payable on January 5, 2010, to shareholders of record as of the close of business on December 10, 2009. The ex-dividend date is December 8. The yield based on the new payout is 2.02%.

ADP (ADP) provides a broad range of data processing services. November 10th the company increased its quarterly dividend 3% to $0.34/share. The dividend is payable on January 1, 2010 to shareholders of record at December 11, 2009. The ex-dividend date is December 9. ADP is a Dividend Aristocrat and has increased its dividend for 34 years. The yield based on the new payout is 3.15%.

Tennant (TNC) designs, manufactures, and markets cleaning solutions. November 10th the company raised its quarterly dividend 8% to $0.14/share. The dividend is payable on December 15, 2009, to shareholders of record November 30, 2009. The ex-dividend date is November 26. The yield based on the new payout is 1.90%.

Cliffs Natural Resources (CLF) is a mining company produces iron ore pellets and supplies metallurgical coal to the steelmaking industry primarily in North America. November 10th the company boosted its quarterly dividend more than 100% to $0.0875/share. The dividend is payable on Dec. 1, 2009, to shareholders of record as of the close of business on Nov. 20, 2009. The yield based on the new payout is 0.90%.

DeVry (DV) offers career-oriented degree programs, preparatory coursework for the CPA and CFA exams, and medical, veterinary, and nursing education. November 11th the company increased its dividend 25% to $0.20/share. Payable semi-annually, the next dividend payment of $0.10/share will be made on Jan. 7, 2010, to common stockholders of record as of Dec. 11, 2009. DV also announced that its board of directors authorized a third share repurchase program of $50 million to commence upon completion of the existing $50 million program. The yield based on the new payout is 0.37%.

Span-America Medical (SPAN) manufactures and distributes a variety of polyurethane foam products for the medical and custom products markets. November 11th the company raised its quarterly dividend 11% to $0.10/share. The dividend is payable December 4, 2009, to shareholders of record on November 20, 2009. The yield based on the new payout is 2.47%.

MDU Resources (MDU) is involved in electric and natural gas distribution, natural gas storage, gathering and transmission, construction materials and mining, and oil and natural gas production. November 12th the company increased the quarterly dividend to $0.1575/share. The dividends are payable January 1, 2010 to stockholders of record December 10, 2009. The ex-dividend date is December 4, 2009. MDU is a Dividend Achiever and has increased its dividend for 18 consecutive years. The yield based on the new payout is 2.87%.

AmerisourceBergen (ABC) is a distributor of pharmaceutical products and related health care services. November 12 the company raised it’s quarterly dividend 33% to $0.08/share. The dividend will be payable December 7, 2009, to stockholders of record at the close of business on November 23, 2009. The yield based on the new payout is 1.33%.

The first step for a stock to become a perfect dividend stock is to raise its dividends each and every year. For a list of stocks with a long string of consecutive dividend increases, see this list.

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