Dividends Value » RBN http://dividendsvalue.com Dividend Investing & Value Investing For A Superior Portfolio Sun, 08 Jan 2012 20:26:30 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 4 Dividend Stocks in the “Good” Category * http://dividendsvalue.com/5414/4-dividend-stocks-in-the-good-category/ http://dividendsvalue.com/5414/4-dividend-stocks-in-the-good-category/#comments Fri, 08 Jan 2010 11:30:05 +0000 D4L http://dividendsvalue.com/?p=5414 Virtually everything in this world can be placed into a few basic categories.  This is especially true for Dividend Stocks when looking at their historic performance and expectations for the future. Consider these three broad categories: The Good: As you might guess, these are the dividend stocks that are doing exactly what they should do – consistently raising their dividends each year in spite of troubled economic times. The Bad: Companies that held their dividends flat.  The Ugly: Companies that cut their dividends.

Here are several companies in the “Good” category that recently rewarded their shareholders with increased cash distributions:

RPM International (RPM) makes specialty coatings and products for the structural waterproofing and corrosion control markets. January 5th the company increased its quarterly dividend 2.5% to $0.205/share. The dividend is payable on January 29, 2010 to stockholders of record as of January 15, 2010. The ex-dividend date is January 13, 2009. RPM is a Dividend Achiever and has raised its dividend for 37 consecutive years. The yield based on the new payout is 4.04%.

Calumet Specialty Products (CLMT) operates refineries in Louisiana and facilities in Pennsylvania and Texas with product distribution throughout North America. January 5th the company raised its quarterly distribution to $0.455/unit. The distribution is payable on February 12, 2010 to holders of record of such units at the close of business on February 2, 2010. ex-dividend date is January 29, 2009. The yield based on the new payout is 9.63%.

Robbins & Myers (RBN) supplies engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets. January 5th the company bumped its quarterly dividend to $0.0425/share. The dividend is payable on February 19, 2010 to shareholders of record as of January 21, 2010. The yield based on the new payout is 0.72%.

Pentair (PNR) makes and markets water and fluid control devices, and electrical and electronic enclosures. January 7th the company increased its quarterly cash dividend 6% to $0.18/share. The the dividend is payable in the first quarter of 2010. PNR is a Dividend Achiever and has raised its dividend for 34 consecutive years. The yield based on the new payout is 2.26%.

Raising its dividend each year is the first step for a “Good” dividend stock to becoming a “Great” dividend 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 securities. See a list of all my income holdings here.

(Photo Credit)

]]> http://dividendsvalue.com/5414/4-dividend-stocks-in-the-good-category/feed/ 3 Bank of America Headed Back to the TARP ATM * http://dividendsvalue.com/1530/bank-of-america-headed-back-to-the-tarp-atm/ http://dividendsvalue.com/1530/bank-of-america-headed-back-to-the-tarp-atm/#comments Fri, 16 Jan 2009 11:30:00 +0000 D4L http://dividendsvalue.com/1530/bank-of-america-headed-back-to-the-tarp-atm/ Someone once said that there is no such thing as bad publicity. I think Bank of America (BAC) would take exception to that statement. BAC has been in the news all week and it has not been flattering or reassuring to it shareholders. This once proud dividend aristocrat continues to struggle even after slashing its dividend.

Monday, Citigroup (C) issued some cautious comments on BAC and said investors should be braced for a very challenging 4Q. C cut Q4 EPS estimates, expects another dividend cut and expects the company raise fresh capital, but will wait for a better environment. Ultimately, C sees cumulative credit losses of $165 billion for 2008-2011, with only about 33% recognized so far.

Yesterday it was reported that BAC needs more aid from the government for its Merrill Lynch acquisition. To date, BAC has received $25 billion from the Treasury Department’s Troubled Assets Relief Program (TARP). According to the The Wall Street Journal, BAC needs additional assistance to deal with an ugly quarterly report from Merrill. By mid-day Thursday shares were down 20% to around $8.

Not all news was bad this week. Instead of looking for a government handout, several companies continue to increase the cash given to their shareholders through higher dividends. Here are a few:

  • Robbins & Myers (RBN) Increases Dividend to $0.04/share (Yield 0.96%)
  • CVS Caremark (CVS) Boosts Qtr. Dividend 10.5% to $0.0725 (Yield 1.1%)
  • Cintas (CTAS) Boosts Annual Dividend to $0.47 (Yield 2.02%)
  • Linear Technology (LLTC) Boosts Qtr. Dividend to $0.22/share (Yield 3.98%)
  • Monsanto (MON) Boosts Qtr Dividend 10% to $0.265 (Yield 1.38%)
  • Pentair (PNR) Boosts Qtr. Dividend from $0.17 to $0.18 (Yield 2.97%)
  • Shaw Communications (SJR) Raises Annual Dividend to $0.053 (Yield 3.80%)
  • Family Dollar (FDO) Raises Qtr. Dividend by 8% to $0.135/share, (Yield 1.89%)

When BAC cut its dividend it no longer met the criteria for inclusion in my income portfolio. There is a reason that my most basic investing rule is to immediately sell a stock after it cuts its dividend; I BAC sold at $28.51/share after its first dividend cut.

Disclosure: No position in the aforementioned securities.


(Photo: Steve Woods)

]]> http://dividendsvalue.com/1530/bank-of-america-headed-back-to-the-tarp-atm/feed/ 3