Dividends Value » WR

23 Stocks With A Vision Of Higher Dividends *

D4L — Fri, 25 Feb 2011 07:30:59 +0000

To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise their dividend. No CEO of this type of company wants a dividend cut to occur on his or her watch.

Here are a few select companies that have recently followed through on their vision of providing increased cash dividends to their shareholders:

Gap Inc. (GPS) operates as a specialty retailing company. February 24th the company increased its quarterly dividend 13% to $0.1125/share. The dividend is payable on or after April 27, 2011 to shareholders of record at the close of business on April 6, 2011. The yield based on the new payout is 2.0%.

Chubb Corporation (CB) provides property and casualty insurance to businesses and individuals. February 24th the company increased its quarterly dividend 5.4% to $0.39/share. The dividend is payable April 5, 2011 to shareholders of record on March 18, 2011. The yield based on the new payout is 2.6%.

BlackRock, Inc. (BLK) is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. February 24th the company increased its quarterly dividend 37.5% to $1.375/share. The dividend is payable March 23, 2011 to shareholders of record at the close of business on March 7, 2011. The yield based on the new payout is 2.7%.

Colgate-Palmolive Company (CL) is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. February 24th the company increased its quarterly dividend 9% to $0.58/share. The Company has paid uninterrupted dividends on its common stock since 1895. The yield based on the new payout is 3.0%.

TECO Energy, Inc. (TE) is an energy-related holding company and its principal subsidiary, Tampa Electric Company, is a regulated utility in Florida with both electric and gas divisions. February 24th the company increased its quarterly dividend 3.7% to $0.215/share. The yield based on the new payout is 4.9%.

Southwest Gas Corporation (SWX) provides natural gas service to approximately 1.8 million customers in Arizona, Nevada, and California. February 24th the company increased its quarterly dividend to $0.265/share. The Company has paid quarterly dividends continuously since going public in 1956, and has raised its dividend in each of the past five years. The yield based on the new payout is 2.8%.

WesBanco, Inc. (WSBC) is a multi-state bank holding company of $5.4 billion in total assets providing banking services through 112 locations and 132 ATMs in West Virginia, Ohio and Pennsylvania. February 24th the company increased its quarterly dividend 7.1% to $0.15 per common share from the previous quarterly dividend rate of $0.14/share. The increased dividend will be payable on April 1, 2011 to shareholders of record on March 11, 2011. The yield based on the new payout is 4.6%.

Old Republic International Corporation (ORI) provides risk management services for a wide variety of coverages, principally in the property and liability, mortgage guaranty and title insurance fields. February 24th the company increased its quarterly dividend to $0.1750/share. The dividend is payable March 15, 2011, to shareholders of record on March 4, 2011. This latest dividend increase marks the 30th consecutive year that Old Republic has boosted its cash dividend rate, and 2011 becomes the 30th year of uninterrupted cash dividend payments. The yield based on the new payout is 5.7%.

First PacTrust Bancorp, Inc. (FPTB) provides various financial services primarily in San Diego and Riverside Counties, California. February 24th the company increased its quarterly dividend 5% to $0.105/share. The dividend will be payable on April 1, 2011 to shareholders of record as of March 11, 2011. The yield based on the new payout is 2.8%.

Essex Property Trust, Inc. (ESS) a real estate investment trust (REIT) with apartment communities located in targeted West Coast markets. February 23rd the company increased its quarterly dividend to $1.04/share. The dividend distribution is payable on April 15, 2011 to shareholders of record as of March 31, 2011 The yield based on the new payout is 3.5%

The Westar Energy, Inc. (WR) is the largest electric utility in Kansas, providing electric service to about 687,000 customers in the state. February 23rd the company increased its quarterly dividend 3% to $0.32/share. The dividend is payable April 1, 2011 on the company’s common stock. The yield based on the new payout is 4.9%

Nordstrom, Inc. (JWN) is one of the nation’s leading fashion specialty retailers, with 204 stores located in 28 states. February 23rd the company increased its quarterly dividend 15% to $0.23/share. The dividend is payable on March 15, 2011, to shareholders of record on March 4, 2011. The yield based on the new payout is 2.1%

Packaging Corporation of America (PKG) is the fifth largest producer of containerboard and corrugated packaging products in the United States. February 22st the company increased its quarterly dividend 33% to $0.20/share. The dividendis payable on April 15, 2011 to shareholders of record as of March 15, 2011. The yield based on the new payout is 2.8%

B&G Foods, Inc. (BGS) and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, shelf-table foods across the United States, Canada and Puerto Rico. February 22st the company increased its quarterly dividend 24% to $0.21/stock. The dividend is payable on May 2, 2011 to shareholders of record as of March 31, 2011. This is the twenty-sixth consecutive quarterly dividend declared by the Board of Directors since B&G Foods’ initial public offering in October 2004. The yield based on the new payout is 6.0%.

The Allstate Corp. (ALL) is the nation’s largest publicly held personal lines insurer. February 22st the company increased its quarterly dividend to $0.21/share. The dividend is payable in on April 1, 2011 to stockholders of record at the close of business on March 11, 2011. The yield based on the new payout is 2.7%.

Sempra Energy (SRE) is a Fortune 500 energy services holding company with 2009 revenues of more than $8 billion. February 22st the company increased its quarterly dividend 23% to $0.48/share. The dividend is payable April 15, 2011, to shareholders of record on March 18, 2011. The yield based on the new payout is 3.6%.

The Home Depot (HD) is the world’s largest home improvement retailer. February 22st the company increased its quarterly dividend 6% to $0.25/share. “As a testament to our confidence in the Company’s strategic initiatives and our commitment to returning capital to our shareholders, the board increased the dividend for the second consecutive year,” Frank Blake, chairman & CEO. “It is our intent to increase our dividend every year. Our longer-term targeted dividend payout ratio is 40 percent.” The dividend is payable on March 24, 2011, to shareholders of record on the close of business on March 10, 2011. This is the 96th consecutive quarter the Company has paid a cash dividend. The yield based on the new payout is 2.7%.

Flowserve Corp. (FLS) is one of the world’s leading providers of fluid motion and control products and services. February 21st the company increased its quarterly dividend 10.3% to $0.32/share. The dividend is payable on April 14, 2011, to shareholders of record as of the close of business on March 31, 2011. The yield based on the new payout is 1.1%.

Gentex Corporation (GNTX) is the leading supplier of automatic-dimming rearview mirrors and camera-based active safety systems to the global automotive industry. February 21st the company increased its quarterly dividend 9% to $0.12/share. The dividend is payable April 21, 2011, to shareholders of record of the common stock at the close of business on April 7, 2011. The yield based on the new payout is 1.5%.

Genuine Parts Co. (GPC) is a distributor of automotive replacement parts in the U.S., Canada and Mexico. February 21st the company increased its quarterly dividend 10% to $0.45/share is payable April 1, 2011 to shareholders of record March 11, 2011. GPC has paid a cash dividend every year since going public in 1948, and 2011 marks the 55th consecutive year of increased dividends paid to shareholders. The yield based on the new payout is 3.4%.

Abbott (ABT) is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. February 18th the company increased its quarterly dividend 9% to to $0.48/share. This marks the 39th consecutive year that Abbott has increased its dividend payout and the 349th consecutive quarterly dividend to be paid by Abbott since 1924. The dividend is payable May 16, 2011, to shareholders of record at the close of business on April 15, 2011. The yield based on the new payout is 4.1%.

Questar Corp.’s (STR) is a Rockies-based integrated natural gas company with an enterprise value of about $4.3 billion and three complementary lines of business. February 18th the company increased its quarterly dividend 9% to $0.1525/share. The dividend is payable March 21, 2011 to shareholders of record on March 4, 2011. This is the company’s 265th consecutive quarterly dividend. Questar has increased its dividend 38 times in the last 39 years. The yield based on the new payout is 3.4%.

MOCON, Inc. (MOCO) is a leading provider of detectors, instruments, systems and consulting services to research laboratories, production facilities, and quality control and safety departments. February 18th the company increased its quarterly dividend 5% to $0.10/share. The dividend is payable on May 20, 2011, to shareholders of record on May 6, 2011. The yield based on the new payout is 3.2%.

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 ABT, CL, GPC. See a list of all my income holdings here.

(Photo Credit)

18 Dividend Stocks Raising Their Yield On Cost *

D4L — Fri, 26 Feb 2010 11:30:21 +0000

For dividend growth investors, there are certain attributes of investments that are more relevant than others, such as yield and dividend growth. To illustrate the power of dividend growth consider that an investment’s yield-on-cost will double every 5 years if they grow their dividend by 15%/year or 7 years at 10%/year or 14 years at 5%/year.

This week several companies took a step toward doubling their shareholders yield-on-cost by increasing their cash dividends:

PG&E Corp. (PCG) is the parent of Pacific Gas & Electric Co. On February 19th the company increased its quarterly dividend to to $0.455/share. The yield based on the new payout is 4.33%.

Abbott (ABT) is a leading maker of drugs, nutritional products, diabetes monitoring devices, and diagnostics. February 19th the company raised its quarterly dividend 10% to $0.44/share. The cash dividend is payable May 15, 2010, to shareholders of record at the close of business on April 15, 2010. The ex-dividend date is April 13. ABT is a Dividend Aristocrat and has raised its dividend for 38 consecutive years. The yield based on the new payout is 3.24%. [Analysis]

ITT Corp (ITT) is a diversified industrial manufacturer of advanced technology products. February 22nd the company raised its quarterly dividend 18% to $0.25/share. The dividend is payable on April 1, 2010 to shareholders of record on March 3, 2010. The ex-dividend date is March 1. The dividend yield is 1.95% on the new payout.

Home Depot (HD) operates a chain of over 2,200 retail warehouse-type stores, selling a wide variety of home improvement products. February 23rd the company increased its quarterly dividend 5% to 23.625/share. The dividend is payable on March 25, 2010, to shareholders of record on the close of business on March 11, 2010. The dividend yield is 3.01% on the new payout.

Kimberly-Clark (KMB) is a leading consumer products company’s global tissue, personal care and health care brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex and Scott. February 23rd the company raised its quarterly dividend 10% to $0.66/share. The dividend is payable on April 5, 2010, to stockholders of record on March 5, 2010. The ex-dividend date is March 3, 2010. KMB is a Dividend Aristocrat and has raised its dividend for 38 consecutive years. The yield based on the new payout is 4.38%. [Analysis]

MOCON (MOCO) makes equipment to test packages and packaging material, and performs consulting and analytical services. February 24th the company raised its quarterly dividend 6% to $0.095/share. The dividend is payable on May 21, 2010, to shareholders of record on May 7, 2010. The ex-dividend date is May 5, 2010. Yield on the dividend is 3.74%.

Digital Realty Trust (DLR) operates as a real estate investment trust (REIT). February 24th the company increased its quarterly dividend to $0.48/share. The dividend will be paid on March 31, 2010, to common stockholders of record as of the close of business on March 15, 2010. The ex-dividend date is March 11, 2010. Yield on the dividend is 3.76%.

Altria Group (MO) is the largest U.S. cigarette producer. February 24th the company increased its quarterly dividend 3% to $0.35/share. The dividend is payable on April 9, 2010, to stockholders of record as of March 15, 2010. The ex-dividend date is March 11, 2010. MO is a Dividend Achiever and has raised its dividend for 14 consecutive years. The yield based on the new payout is 6.91%.

Westar Energy (WR) provides electric generation, transmission and distribution services to apx. 674,000 customers in Kansas as of December 31, 2007. February 24th the company raised its quarterly dividend 3.3% to $0.31/share. The dividend is payable April 1, 2010 to shareholders of record on March 9, 2010. The ex-dividend date is March 5. The yield based on the new payout is 5.62%.

Chubb (CB) is one of the largest U.S. property-casualty insurers, Chubb has carved out a number of niches, including high-end personal lines and specialty liability lines coverage. February 24th the company increased its quarterly dividend 5.7% to $0.37/share. The dividend is payable on April 6 to shareholders of record on March 19. The ex-dividend date is March 17. CB is a Dividend Aristocrat and has raised its dividend for 45 consecutive years. The yield based on the new payout is 2.90%. [Analysis]

Weingarten Realty Investors (WRI) is a REIT focusing on shopping centers and industrial properties. February 24th the company increased its dividend. The yield based on the new payout is 4.92%.

McGrath Rentcorp (MGRC) rents and sells modular buildings and electronic test and measurement equipment; and manufactures and sells portable classrooms. February 24th the company increased its quarterly dividend to $0.225/share. The dividend is payable on April 30, 2010, to all shareholders of record on April 16, 2010. The ex-dividend date is April 14, 2010. MGRC is a Dividend Achiever and has raised its dividend for 18 consecutive years. The yield based on the new payout is 3.69%.

Essex Property Trust (ESS) is a real estate investment trust primarily owns and operates multi-family properties in California and the Pacific Northwest. February 24th the company raised its quarterly dividend to $1.0325/share. The dividend is payable on April 15, 2010 to shareholders of record as of March 31, 2010, will be $1.0325 per share. The ex-dividend date is March 29, 2010. ESS is a Dividend Achiever and has raised its dividend for 16 consecutive years. The yield based on the new payout is 4.83%.

Donaldson (DCI) operates as a worldwide manufacturer of filtration systems and replacement parts. February 24th the company increased its quarterly dividend 4% to $0.12/share. The dividend is payable March 19th to shareholders of record as of March 5th. The ex-dividend date is March 3. DCI is a Dividend Achiever and has raised its dividend for 24 consecutive years. The yield based on the new payout is 1.147%.

CenturyLink (CTL) provides voice service to 7 million customers and Internet service to 2 million customers in both rural towns and larger cities, like Las Vegas. February 25th the company raised its quarterly dividend 3.6% to $0.725/share. The dividend is payable on March 22, 2010 to shareholders of record on March 9, 2010. The ex-dividend date is March 5, 2010. CTL is a Dividend Aristocrat and has raised its dividend for 36 consecutive years. The yield based on the new payout is 8.37%.

Gap Inc. (GPS) is a specialty apparel retailer operates Gap, Banana Republic and Old Navy stores. February 25th the company increased its dividend 18% to $0.10/share. The dividend is payable on April 28, 2010 to shareholders of record at the close of business on April 7, 2010. The yield based on the new payout is 1.96%.

Old Republic Int. (ORI) writes property and liability, mortgage guaranty, title and life, and disability insurance. February 25th the company raised its quarterly dividend 1.4% to $0.1725/share. The dividend is payable March 15, 2010, to shareholders of record on March 5, 2010. Yield on the dividend is 6.1%. ORI is a Dividend Achiever and has raised its dividend for 28 consecutive years. The yield based on the new payout is 6.13%.

Cleco Corp (CNL) generates, transmits, distributes and sells electricity in Louisiana; holds ownership interest in three steam electric generating stations and one gas turbine. February 25th the company increased its quarterly dividend 11% to $0.25/share. The dividend is payable May 15, 2010. The yield based on the new payout is 3.90%.

The only way a company can consistently increase yield-on-cost is to consistently raise their dividends paid. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long ABT, KMB, CTL. See a list of all my income holdings here.

(Photo Credit)

Federal Reserve To Urge Banks to Stop Paying Dividends *

D4L — Mon, 02 Mar 2009 11:30:00 +0000

Last Wednesday, Bloomberg reported that The Federal Reserve is urging Wells Fargo & Co. (WFC) and dozens of banks getting bailout funds to put the money into new loans, bolster loss reserves and not to pay dividends to shareholders. It seems the message has been heard. JPMorgan (JPM), the second-largest U.S. bank, slashed its dividend by 87% to $0.05. CEO Jamie Dimon said the decision wasn’t “directly related” to the $25 billion it received under the government’s Troubled Asset Relief Program (TARP). Not all companies have the government helping them run their businesses, so they are free to continue raising their dividends. Here are several that have done just that:

Unlike the athletes in the Olympics, attributing an impressive dividend performance to drugs is a good thing for Abbott (ABT). The company is a diversified life science company is a leading maker of drugs, nutritional products, diabetes monitoring devices, and diagnostics. This week the company announced it has increased its quarterly common dividend 11% to $0.40/share. The dividend yield on ABT shares is over 3%. This is the 37th consecutive year ABT has raised its dividend. Linked here is my most recent analysis of ABT.

Colgate-Palmolive Co. (CL) is a major consumer products company that markets oral, personal and household care, and pet nutrition products in more than 200 countries and territories. This week CL announced that its Board approved a 10% increase in its quarterly dividend to $0.44/share. It is payable on May 15, 2009 to shareholders of record as of April 24, 2009. The dividend yield on CL shares is over 2.5%. This is the 46th consecutive year CL has raised its dividend.

The Chubb Corp. (CB) is one of the largest U.S. property-casualty insurers, Chubb has carved out a number of niches, including high-end personal lines and specialty liability lines coverage. CB last week declared a $0.35/share quarterly dividend payable April 7, 2009 to shareholders of record on March 20, 2009. This represents a 6.1% increase to $0.35/share. The dividend yield on CB shares is over 3.5%. This is the 44th consecutive year CB has raised its dividend.

Kimberly-Clark Corp. (KMB) is a leading consumer products company’s global tissue, personal care and health care brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott and Kimberly-Clark. KMB announced a 3.4% dividend increase bringing the quarterly dividend to $0.60/share. It is payable on April 2, 2009 to stockholders of record on March 6, 2009. This is the 37th consecutive year KMB has raised its dividend. The dividend yield on KMB shares is 4.92%. Linked here is my most recent analysis of KMB.

Other select companies recently raising the dividend bar include:

Tim Hortons (THI) Raises Qtr. Dividend by 11.1% to $0.10/share (yield 1.32%)
ITT Corp. (ITT) Boosts Qtr. Dividend by 22% to $0.2125/share (yield 2.15%)
Thomson Reuters (TRI) Boosts Qtr. Dividend 17% to $0.28/share (yield 4.38%)
Westar Energy (WR) Raises its Qtr. Dividend by 3.4% to $0.30/share (yield 6.93%)
PepsiAmericas (PAS) Boosts Q1 Dividend (yield 3.36%)

For more companies around the world with a long string of consecutive dividend increases, see Dividends Value’s Stock Ideas page.

Full Disclosure: Long KMB

(Photo: Steve Woods)

- Above-referenced Bloomberg Article