Dividends Value » NOC

13 Dividend Stocks Raising Their Payouts And Yields *

D4L — Fri, 21 May 2010 07:30:08 +0000

In a down-market when many people are rushing to buy gold, I take comfort that I already have mine. No, not that kind, but something much better! A growing stream of dividend income from solid companies. While everyone else is panicked about their portfolio’s decline, I see a downturn as an incredible buying opportunity. Lower prices, rising yields and growing dividends, its hard to beat that combination.

Below are several select companies that recently announced dividend increases:

Portland General Electric (POR) is an integrated Oregon-based electric utility serves about 1.6 million people, approximately 43% of the state’s population. May 14th the company increases its quarterly dividend 2% to $0.26/share. The dividend is payable on or before July 15, 2010, to shareholders of record at the close of business on June 25, 2010. The ex-dividend date is June 23, 2010. The yield based on the new payout is 5.29%.

Nordstrom (JWN) is a specialty retailer of apparel and accessories, widely known for its emphasis on service, operates about 193 stores in 28 states. May 18th the company raised its quarterly dividend 25% to $0.20/share. The dividend is payable on June 15, 2010, to shareholders of record on May 28, 2010. The ex-dividend date is May 26, 2010. The yield based on the new payout is 2.10%.

First Financial (THFF) provides various financial services from 48 branch offices in west-central Indiana and east-central Illinois. May 18th the company raised its semi-annual to $0.46/share. The dividend is payable on July 1, 2010, to shareholders of record at the close of business June 15, 2010. THFF is a Dividend Achiever and has raised its dividend for 22 consecutive years. The yield based on the new payout is 3.08%.

Northrop Grumman (NOC) is the world’s third largest producer of military arms and equipment, and also has a large government IT services business. May 19th the company increased its quarterly dividend 9.3% to $0.47/share. The dividend is payable June 12, 2010, to shareholders of record as of the close of business June 1, 2010. The ex-dividend date is May 28, 2010. The yield based on the new payout is 3.02%.

ACE Limited (ACE) provides commercial insurance and reinsurance for a diverse group of international clients. May 19th the company increased its quarterly dividend to $0.33/share. The yield based on the new payout is 2.59%.

Xcel Energy (XEL) was created through the August 2000 merger of Northern States Power and New Century Energies. May 19th the company raised its quarterly dividend 3% to $0.2525/share. The dividend is payable July 20, 2010, to shareholders of record on June 24, 2010. The ex-dividend date is June 22, 2010. The yield based on the new payout is 4.82%.

Safeway (SWY) is a major food retailer operating about 1,725 stores in the U.S. and Canada. May 19th the company raised its quarterly dividend 20% to $0.12/share. The dividend is payable on July 15, 2010, to stockholders of record at the close of business on June 24, 2010. The ex-dividend date is June 22, 2010. The yield based on the new payout is 2.09%.

Republic Bancorp (RBCAA) provides banking, mortgage banking, and tax refund solutions to individuals and businesses in the United States. May 19th the company increased its quarterly dividend 8% to $0.143/share. The dividend is payable July 16, 2010 to shareholders of record as of June 18, 2010. The ex-dividend date is June 16, 2010. RBCAA is a Dividend Achiever. The yield based on the new payout is 2.41%.

Dr Pepper Snapple (DPS) is the third largest marketer, bottler and distributor of non-alcoholic beverages in North America. May 19th the company increased its quarterly dividend 67% to $0.25/share. The dividend is payable in on July 9, 2010, to shareholders of record on June 21, 2010. The ex-dividend date is June 17. The yield based on the new payout is 2.72%.

Clorox (CLX) producer of household cleaning, grocery and specialty food products is also a leading producer of natural personal care products. May 19th the company increased its quarterly dividend 10% to $0.55/share. The dividend is payable Aug. 13, 2010, to stockholders of record on July 28, 2010. The ex-dividend date is July 26, 2010. CLX is a Dividend Aristocrat and has raised its dividend for 22 consecutive years. The yield based on the new payout is 3.50%.

Ship Finance (SFL) owns an international fleet of crude oil tankers, which are leased under long-term, fixed-price charters. May 20th the company increased its quarterly dividend to $0.33/share. The yield based on the new payout is 7.84%.

Tiffany (TIF) is a leading international retailer, designer, manufacturer, and distributor of fine jewelry and gift items. May 20th the company raised its quarterly dividend 25% to $0.25/share. The dividend is payable on on July 12, 2010 to stockholders of record on June 21, 2010. The ex-dividend date is June 17. The yield based on the new payout is 2.39%.

Canadian Pacific Railway (CP) provides rail freight transportation over a network serving the principal centers of Canada, as well as the U.S. Midwest and Northeast. May 20th the company raised its quarterly dividend 9% to C$0.27/share. The increased dividend is payable on July 26, 2010, to holders of record at the close of business on June 25, 2010. The yield based on the new payout is 2%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently increased 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 CLX. See a list of all my income holdings here.

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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.

Eight Companies Secure In Raising Their Dividends *

D4L — Fri, 22 May 2009 10:30:14 +0000

People want to feel secure. National security and the military provide assurance that a country’s citizens will be protected, thus allowing them to focus their attention on other interests and endeavors. National security is so large that no government can do it all alone. They all partner with companies like Northrop Grumman Corp (NOC) to provide the best defense products at the lowest price.

NOC this week helped their shareholders feel secure by raising its quarterly dividend 3.6% to $0.43/share. The company has increased its quarterly dividend in each of the last five years, and it has more than doubled since 2003. The dividend is payable June 13, 2009, to shareholders of record as of the close of business June 1, 2009. The ex-dividend date is May 28. The current yield based on the new dividend is 3.6%.

Below are several other companies making their shareholders feel a little more secure this week by increasing their cash dividends paid:

Assurant (AIZ) increases its quarterly dividend 7% to $0.15, yielding 2.66%
AmerisourceBergen (ABC) raises its quarterly dividend 20% to $0.06, yielding 0.65%
Airgas (ARG) boosts its quarterly dividend 12.5% to $0.18, yielding 1.66%
AAON (AAON) jumps its semi-annual dividend 13%, yielding 1.72%
ACE Limited (ACE) increases its quarterly dividend 7% to $0.31/share, yielding 2.58%
Xcel Energy (XEL) raises its quarterly dividend 3.2% to $0.245/share, yielding 5.75%
Raven Industries (RAVN) boosts its quarterly dividend 8% to $0.14/share, yielding 1.92%

One sign of a safe and secure dividend is longevity. For companies with a long string of consecutive dividend increases, see this list.

Full Disclosure: No position in the aforementioned companies. See a list of all my income holdings here.

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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