Dividends Value » NST

2 Dividend Stocks Building Future Yield and 10 Going Ex-Dividend in January *

D4L — Fri, 07 Jan 2011 07:30:53 +0000

Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep pace hedge funds, mutual funds, institutional investors and multi-billion dollar money managers spend large sums of money on high-tech tools to give them an edge. So, what chance does a small individual investor have?

Not much of a chance if you let the Wall Street players define the rules. However, you might just slay the giant if you define the rules and focus on quality blue chip dividend growth stocks and long-term, buy-and-hold and investing strategy.

Below are two companies building future yield with increased cash dividends for their shareholders:

Spectra Energy (SE) in an integrated natural gas holding company engaged in gas gathering and processing, and gas transportation and storage, in the U.S. and Canada, and provides retail gas distribution to 1.3 million customers in Ontario, Canada. January 3rd the company increased its quarterly dividend 4% to $0.26/share. The dividend is payable on March 14, 2011, to shareholders of record at the close of business on February 11, 2011. The ex-dividend date is February 9, 2011. The yield based on the new payout is 4.2%.

Bank of the Ozarks (OZRK) owns Bank of the Ozarks, which provides retail & commercial banking products and services via 70 banking and two loan production offices in AR, TX, NC (Dec. 31, 2007). January 3rd the company raised its quarterly cash dividend 6.25% to $0.17/share. The dividend is payable January 21, 2011 to shareholders of record as of January 14, 2011. The Company has increased its quarterly dividend in four of the last five quarters. OZRK is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 1.5%.

In addition to the above, the following stocks are will go Ex-dividend in January:

- Urstadt Biddle Properties (UBA) went Ex-dividend on 1/3/2011, Yield: 5.1%
- Erie Indemnity Company (ERIE) went Ex-dividend on 1/3/2011, Yield: 3.1%
- ABM Industries Inc. (ABM) went Ex-dividend on 1/4/2011, Yield: 2.1%
- AT&T Inc. (T) went Ex-dividend on 1/5/2011, Yield: 5.8%
- Sysco Corp. (SYY) went Ex-dividend on 1/5/2011, Yield: 3.5%
- NSTAR (NST) went Ex-dividend on 1/5/2011, Yield: 4.0%
- Universal Corp. (UVV) went Ex-dividend on 1/6/2011, Yield: 4.8%
- Graco Inc. (GGG) will go Ex-dividend on 1/14/2011, Yield: 2.1%
- Hormel Foods Corp. (HRL) will go Ex-dividend on 1/20/2011, Yield: 2.0%
- Pentair Inc. (PNR) will go on Ex-dividend on 1/27/2011, Yield: 2.1%

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends or are ex-dividend in January; 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 T, SYY. See a list of all my income holdings here.

(Photo Credit)

23 Dividend Stocks Paying More Cash *

D4L — Fri, 19 Nov 2010 07:30:30 +0000

When selecting income investments, the three most important questions to answer are : 1.) Is the investment increasing its dividend each year, 2.) Is the increase likely to continue into the future and 3.) Are you being compensated for the risk you are taking? When you answer yes to all three of the questions, you just might have found an excellent income investment.

Below are several dividend stocks that recently rewarded their shareholders with increased cash dividends:

Wendy’s/Arby’s (WEN) the combined restaurant systems include more than 10,000 restaurants in 50 states and 21 countries worldwide. November 12th the company increased its quarterly dividend 33%to $0.015/share. The dividend is payable on December 15, 2010 to Wendy’s/Arby’s Group, Inc. stockholders of record as of December 1, 2010. The ex-dividend date is November 29, 2010. The yield based on the new payout is 1.7%.

Sysco Corp. (SYY) is a large distributor of food and related products, primarily to the foodservice or food-away-from-home industry. November 12th the company raised its quarterly dividend 4% to $0.26/share. The dividend is payable on January 28, 2011, to common shareholders of record at the close of business on January 7, 2011. The ex-dividend date is January 5, 2011. SYY is a Dividend Achiever and has raised its dividend for 41 consecutive years. The yield based on the new payout is 3.6%.

Intel (INTC) is the world’s largest manufacturer of microprocessors, the central processing units of PCs, and also produces other semiconductor products. November 12th the company increased its quarterly dividend 13% to $0.18/share. The yield based on the new payout is 3.4%.

Adams Resources & Energy (AE) is engaged in the business of marketing crude oil, natural gas and petroleum products. November 12th the company raised its quarterly dividend 8% to $0.54/share. The dividend is payable on December 15, 2010 to shareholders of record as of December 1, 2010. The yield based on the new payout is 2.3%.

Chicago Rivet & Machine (CVR) produces and sells rivets, cold-formed fasteners, screw machine products, automatic rivet setting machines, parts and tools for such machines, and leases machines. November 15th the company increased its quarterly dividend 20% to $0.12/share. The dividend is payable December 20, 2010 to shareholders of record at the close of business on December 3, 2010. The ex-dividend date is December 1, 2010. The yield based on the new payout is 2.6%.

Mattel (MAT) is a large toy company whose brands and products include Barbie dolls, Fisher-Price toys, American Girl dolls and books, and Hot Wheels. November 15th the company raised its annual dividend 10.7% to $0.83/share. The dividend is payable on December 16, 2010, to stockholders of record on December 3, 2010. The ex-dividend date is December 1, 2010. The yield based on the new payout is 3.4%.

Elbit Systems (ESLT) is an international defense electronics company. November 16th the company increased its quarterly dividend 22% to $0.36/share. The dividend’s record date is November 30, 2010, and the dividend will be paid on December 13, 2010. The ex-dividend date is November 26, 2010. The yield based on the new payout is 2.9%.

Comerica (CMA) is a bank holding company based in Dallas with operations in Michigan, California, Texas, Arizona, and Florida. November 16th the company raised its quarterly dividend 100% to $0.10/share. The dividend is payable on Jan. 1, 2011, to shareholders of record on Dec. 15. The yield based on the new payout is 1.1%.

Montpelier Re (MRH) provides insurance and reinsurance solutions to the global market. November 16th the company increased its quarterly dividend 11% to $0.10/share. The dividend is payable on January 14, 2011, to all shareholders of record as of December 31, 2010. The ex-dividend date is December 29, 2010. The yield based on the new payout is 2.1%.

MeadWestvaco Corp. (MWV) is primarily a major producer of paperboard packaging used in a variety of consumer markets. November 17th the company raised its quarterly dividend 9% to $0.25/share. The dividend is payable on December 1, 2010, to stockholders of record at the close of business on November 26, 2010. The ex-dividend date is November 24, 2010. The yield based on the new payout is 3.9%.

S.Y. Bancorp (SYBT) provides commercial banking, personal banking, investment management, and trust services in the United States. November 17th the company increased its quarterly dividend 6% to $0.18/share. The dividend is payable January 3, 2011, to stockholders of record as of December 13, 2010. The ex-dividend date is December 9, 2010. The yield based on the new payout is 3.0%.

Teck Resources (TCK) is engaged in mining and related activities. November 17th the company raised its semi-annual dividend 54% to $0.30/share. The dividend is payable January 4, 2011, to shareholders of record at the close of business on December 15, 2010. The ex-dividend date is December 13, 2010. The yield based on the new payout is 1.3%.

Johnson Controls (JCI) supplies building controls and energy management systems, automotive seating, and batteries. November 17th the company increased its quarterly dividend 23% to $0.16/share. The dividend is payable January 4, 2011 to shareholders of record at the close of business on December 10, 2010. The yield based on the new payout is 1.7%

New Jersey Resources (NJR) is an energy services holding company providing retail and wholesale energy services to customers in states from the Gulf Coast to the New England regions. November 17th the company raised its quarterly dividend 5.9% to $0.36/share. The dividend is payable January 3, 2011 to shareholders of record on December 15, 2010. The ex-dividend date is December 13, 2010. NJR is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 3.5%.

Schawk (SGK), one of the world’s largest providers of digital graphics services, designs, creates and manages images and text for reproduction to precise specifications for a variety of promotional and advertising media. November 18th the company increased its quarterly dividend to $0.08/share. The dividend is payable on December 30, 2010, to stockholders of record as of December 13, 2010. The ex-dividend date is December 9, 2010. The yield based on the new payout is 1.9%.

Neenah Paper (NP) is a leading international producer and distributor of premium fine papers and technical products used in filtration, tape, abrasives, and other specialty markets. November 18th the company raised its quarterly dividend 10% to $0.11 per share. The dividend is scheduled to be paid in March 2011. The yield based on the new payout is 2.5%.

Union Pacific (UNP) operates the largest U.S. railroad, with over 32,000 miles of rail serving the western two-thirds of the country. November 18th the company increased its quarterly dividend 15% to $0.38/share. The dividend is payable on Jan. 3 to shareholders of record on Nov. 30. The ex-dividend date is Nov. 26. The yield based on the new payout is 1.66%.

Brown-Forman (BF-A) manufactures, bottles, imports, exports and markets a variety of alcoholic beverage brands. November 18th the company raised its quarterly dividend 6.7% to $0.32/share. The dividend is payable December 27, 2010, to shareholders of record as of December 7, 2010. The ex-dividend date is December 3, 2010. The yield based on the new payout is 2%.

Campbell Soup (CPB) is a major producer of branded soups and other grocery food products. November 18th the company raised its quarterly dividend 5% to $0.29/share. The dividend is payable on January 31, 2011 to shareholders of record at the close of business on December 27, 2010. The ex-dividend date is December 23, 2010. The yield based on the new payout is 3.4%.

NSTAR (NST) serves some 1.4 million electric and natural gas customers in Massachusetts, has agreed to be acquired by Northeast Utilities. November 18th the company raised its quarterly dividend 6.3% to $0.425/share. The dividend is payable February 1, 2011 to shareholders of record as of January 7, 2011. The ex-dividend date is January 5, 2010. NST is a Dividend Achiever and has raised its dividend for 12 consecutive years. The yield based on the new payout is 4.1%.

Ruddick (RDK) derives the bulk of its sales from its Harris Teeter supermarket chain, which operates in eight southeastern states. It also manufactures thread and yarn. November 18th the company increased its quarterly dividend to $0.13/share. The dividend is payable on January 1, 2011, to shareholders of record on December 10, 2010. The yield based on the new payout is 1.4%.

Nike (NKE) is the world’s leading designer and marketer of high-quality athletic footwear, athletic apparel, and accessories. November 18th the company raised its quarterly dividend 6.9% to $0.31/share.The dividend is payable on Dec. 30 to shareholders of record on Dec. 6. The ex-dividend date is Dec. 2. The yield based on the new payout is 1.5%.

Laclede Group (LG) primarily distributes natural gas on a retail basis in St. Louis and nearby suburban areas. November 18th the company raised its quarterly dividend 2.5% to $0.405/share. The dividend is payable on January 4, 2011, to shareholders of record on December 10, 2010. The ex-dividend date is December 8, 2010. The yield based on the new payout is 4.6%.

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 SYY, INTC. See a list of all my income holdings here.

(Photo Credit)

The 2010 Dividend Stock Ideas List *

D4L — Wed, 24 Feb 2010 11:30:53 +0000

Last year I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Duplications in the above lists are eliminated and stocks are crossed out when I learn that they have either cut their dividend or fail to raise it. Here are some highlights on this year’s changes:

Dividend Aristocrats: Companies in the S&P 500 that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. As the name denotes, these are the best of the best – the blue blood stocks, including names like:

US Broad Dividend Achievers: Is comprised of companies incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased their annual regular dividend payments for the last ten or more consecutive years. Notable names on this list include:

The U.S. Dividend Champions: Is maintained by Dave Fish of MoneyPaper. The list is updated monthly and located at the The Drip Investing Resource Center. Like the Dividend Aristocrats above the Dividend Champions list looks for companies that have increased their dividend for at least 25 consecutive years. However, since S&P 500 membership is not a requirement, the list is larger than the Dividend Aristocrats list and also includes small-cap companies.

- Bowl America (BWL.A) | Yield: 4.50%
- Conn. Water Service (CTWS) | Yield: 4.00%
- Weyco Group Inc. (WEYS) | Yield: 2.70%

Needless to say, last year saw many companies fall off the list. Overall the number of constituents fell to 218 stocks in 2010 from 319 in 2009. What made last year so unusual were the number of big-name companies that no longer qualified for inclusion on the list, some that had paid increasing dividends for decades, including:

- American International Group, Inc. (AIG)
– Bank of America Corporation (BAC)
– General Electric Co. (GE)
- The Home Depot, Inc. (HD)
- Johnson Controls Inc. (JCI)
- Pfizer Inc. (PFE)
- US Bancorp (USB)

The news wasn’t all bad. Partially offsetting the 133 companies that fell off the list were 32 new companies joining the Dividend Stock Ideas List. For the most part, these aren’t household names, not yet at least, but here are some names we will likely be seeing in the future:

- Arrow Financial Corporation (AROW) | Yield: 3.90%
- Energy Transfer Partners L.P. (ETP) | Yield: 7.80%
- Federated Investors, Inc. (FII) | Yield: 3.70%
- Getty Realty Corp. (GTY) | Yield: 8.50%
- Hudson City Bancorp, Inc. (HCBK) | Yield: 4.60%
- Investors Real Estate Trust (IRET) | Yield: 7.80%
- NSTAR (NST) | Yield: 4.60%
- Northeast Utilities (NU) | Yield: 3.80%
- Plains All American Pipeline LP (PAA) | Yield: 6.80%
- Suburban Propane Partners LP (SPH) | Yield: 7.30%

You can see the entire Dividend Stock Idea List here. Remember, not every stock listed here is a great dividend investment, but virtually all great dividend investments are on this list.

Full Disclosure: Long CLX, KO, EMR, JNJ, MCD, PG, WMT, CVX, NUE. See a list of all my income holdings here.

(Photo Credit)

11 Dividend Stocks Increasing Dividends and Long-Term Returns *

D4L — Fri, 20 Nov 2009 10:30:30 +0000

It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.

Here are several companies looking to increase their long-term returns by raising their cash dividends:

Intel (INTC) is the world’s largest manufacturer of microprocessors, the central processing units of PCs, and also produces other semiconductor products. November 16th, the company raised its quarterly dividend 12.5% to $0.1575/share. Paul Otellini, Intel president and CEO commented “With one of the highest dividend yields in the technology industry, the dividend increase is another sign of our confidence in business prospects going forward.” The yield based on the new payout is 3.26%.

Lancaster Colony (LANC) manufactures and markets consumer products in two segments: Specialty Foods, and Glassware and Candles. November 16th the company increased its dividend 5.3% to $0.30/share. The payable is payable December 31, 2009 to shareholders of record on December 10, 2009. The ex-dividend date is December 8. LANC is a Dividend Achiever and has increased its dividend for 47 consecutive years. The yield based on the new payout is 2.41%.

Brown-Forman (BF.A) on November 16 raised its dividend 4.3% to $0.30/share. Stockholders of record on December 7, 2009 will receive the cash dividend on January 4, 2010. This is Brown-Forman’s 64th consecutive year of quarterly dividends and the 26th consecutive year it has increased the annual dividend. The yield based on the new payout is 2.23%.

Sysco (SYY) is the largest U.S. marketer and distributor of foodservice products. November 17th the company boosted its dividend to $0.25/share. The dividend is payable on January 22, 2010, to common shareholders of record at the close of business on December 31, 2009. The ex-dividend date is December 29, 2009. LANC is a Dividend Achiever and has increased its dividend for 39 consecutive years. The yield based on the new payout is 3.66%.

Royal Gold (RGLD) is the largest U.S.-based company engaged in the acquisition and management of precious metal royalty interests. November 18th the company increased its quarterly dividend 13% to $0.09/share. The dividend is payable January 15, 2010, to shareholders of record at the close of business on January 4, 2010. The ex-dividend date is December 31, 2009. The yield based on the new payout is 0.68%.

PennantPark (PNNT) specializes in direct and mezzanine investments in middle-market companies. November 18th the company raised its quarterly dividend 4.2% to $0.25/share.The dividend is payable on January 4, 2010 to stockholders of record as of December 24, 2009. The ex-dividend date is December 22. The yield based on the new payout is 11.96%.

Harsco (HSC) is a industrial service provider and manufacturer has operations in steel
mill services and access services, as well as construction. November 19th the company boosted it quarterly dividend for the 16th consecutive year to $0.205/share. The dividend is payable February 16, 2010 to Harsco stockholders of record as of January 15, 2010. The ex-dividend date is January 13. The dividend yield on the new payout is 2.5%. LANC is a Dividend Achiever and has increased its dividend for 19 consecutive years. The yield based on the new payout is 2.52%.

NSTAR (NST) was created through the 1999 merger of BEC Energy and Commonwealth Energy System. November 19th the company increased its quarterly dividend 6.7% to $0.40/share.The payable February 1, 2010 to shareholders of record as of January 8, 2010. The ex-dividend date is January 6. The yield based on the new payout is 4.98%.

Laclede Group (LG) distributes natural gas on a retail basis in St. Louis and nearby suburban areas. November 19th the company raised its quarterly dividend to $0.395/share. The dividend will be payable on January 4, 2010, to shareholders of record on December 11, 2009. The ex-dividend date is December 9, 2009. Yield on the dividend is 5%. The yield based on the new payout is 5.00%.

Bob Evans Farms (BOBE) owned and operated 571 Bob Evans Restaurants & 132 Mimi’s Cafes. November 19th the company announced a 12.5% increase in the quarterly cash dividend to $0.18/share. The dividend is payable on Dec. 15 to stockholders of record at the close of business on Dec. 4. The yield based on the new payout is 2.83%.

Nike (NKE) is the world’s leading designer and marketer of high-quality athletic
footwear, athletic apparel, and accessories. November 19th, the company increased its quarterly dividend 8% to $0.27/share. The dividend is payable on January 4, 2010 to shareholders of record at the close of business on December 7, 2009. The yield based on the new payout is 1.70%.

When looking for stocks with growing dividends, longevity of consecutive increases is important. For a list of stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: Long INTC, SYY. See a list of all my income holdings here.

(Photo Credit)

Sysco (SYY) Raises Qtr. Dividend by 9% and Others *

D4L — Fri, 21 Nov 2008 11:30:00 +0000

I am not a stock trader; I am a dividend and value based long-term buy-and-hold investor. When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. I am not smart enough to time the daily gyrations of the stock market. However, I have one hard and fast rule about selling stocks: When an individual stock held as a dividend investment lowers its dividend, immediately sell it.

Here are several stocks that are trying to stay in good favor with their shareholders by raising their cash dividends:

RLI Corp. (RLI) Boosts Qtr. Dividend by 4% to $0.26/Share (1.87%)
Lancaster Colony (LANC) Increases Qtr. Dividend by 1.7% to $0.285/Share (3.96%)
SkyWest (SKYW) Raises Dividend Qtr. Dividend by 33% to $0.04/Share (1.24%)
DHT Maritime (DHT) Raises Qtr. Dividend by % 20 to $0.30/Share (25.21%)
Roper Industries (ROP) Boosts Qtr. Dividend 13.8% to $0.0825/Share (0.86%)
Sysco (SYY) Raises Qtr. Dividend by 9% to $0.24/Share (3.91%)
NSTAR (NST) Increases Qtr. Dividend by 7% to $0.35/Share (4.29%)
The Laclede Group (LG) Increases Qtr. Dividend by 2.7% to $0.385/Share (3.08%)

After running these companies through my D4L-PreScreen.xls model, RLI with a NPV of MMA Differential of $3,404 and 33 consecutive year record of raising dividends certainly qualifies for a more complete evaluation. DHT has only paid a dividend since 2006. NST had positive NPV of MMA Differentials, but below the level that would warrant a more detailed evaluation. SYY was reviewed on Wednesday.

Disclosure: Long SYY.

(Photo: Steve Woods)