Sunday, December 14, 2008

Nine notable dividend increases

Several large companies announced dividend increases over the past week. One of the most notable bullish calls came from the telecom sectors as AT&T (T) showed confidence in its business model by increasing its dividend payment to shareholders for the twenty fifth consecutive years. Despite the tough macroeconomic conditions AT&T (T) is still committed to raising its quarterly dividend. The board announced a 2.5% increase of the quarterly payment to to $0.41/share. The stock currently yields 5.70%. One thing that still concerns me with AT&T however is the high current dividend payout ratio. You could check my analysis of AT&T from this link.

BCE, the Canadian telecom company whose privatization agreement failed this month reinstated its quarterly dividend payment of 0.365/share and approved a 40 million share buyback. Based off the reinstated payment to shareholders, the company yields 8.60%, Based off the 2007 earnings per share, the dividend seems adequately covered.

Nucor Corporation (NUE), which is manufactures and distributes coatings, paints, and related products, announced that its Board has approved a 9.40% increase in its quarterly dividend to $0.35 per common share. Nucor Corporationis a dividend aristocrat which has increased its dividends for over thirty four years. The stock currently yields 3.20%. I am considering adding to my position there on dips below $35. You could check out my analysis of NUE here.

Franklin Resources (BEN), which is an investment management company, announced that its Board has approved a 5% increase in its quarterly dividend to $0.21 per common share. Franklin Resources is a dividend champion which has increased its dividends for over twenty seven years. The stock currently yields 1.30%.

Honeywell (HON), which is a diversified technology and manufacturing company, announced that its Board has approved a 5% increase in its quarterly dividend to $0.21 per common share. Honeywell has regularly increased its dividends since 2005. The stock currently yields 3.80%.

Edison International (EIX), which is engages in the supply of electric energy in California, announced that its Board has approved an increase in its quarterly dividend to $0.31 per common share. Edison International has cut its dividends twice for the past twenty years – in 1994 and in 2004. The stock currently yields 3.80%.

Harsco Corporation (HSC), which is provides industrial services and engineered products primarily to steel, construction, railways, and energy industries worldwide, announced that its Board has approved a 2.60% increase in its quarterly dividend to $0.20 per common share. Harsco Corporation is a dividend achiever which has increased its dividends for thirteen years. The stock currently yields 3.20%.

The Valspar Corporation (VAL), which is manufactures and distributes coatings, paints, and related products, announced that its Board has approved a 7.10% increase in its quarterly dividend to $0.15 per common share. Valspar Corporation is a dividend champion which has increased its dividends for over twenty seven years. The stock currently yields 3.40%. You could check my analysis of VAL from this link.

Progress Energy (PGN), which operates as an integrated energy company, announced that its Board has approved an increase in its quarterly dividend from $0.615 to $0.62 per common share. Progress Energy is a dividend achiever which has increased its dividends for over two decades years. The stock currently yields 6.30%.

DPL Inc. (DPL), which operates as a regional electric energy company in the United States, and related products, announced that its Board has approved a 3.60% increase in its quarterly dividend to $0.285 per share. DPL Inc. has regularly increased its dividends since 2004. The stock currently yields 5.20%.

Full Disclosure: I own shares of NUE

Relevant Articles:

- Nucor Corporation (NUE) Dividend Stock Analysis
- AT&T (T) Dividend Analysis
- Valspar Corporation (VAL) Dividend Analysis
- Is GE’s dividend safe?

4 comments:

  1. Thanks for the info. This is certainly very helpful in choosing which stock to average down or initiate a position in.

    ReplyDelete
  2. I think that it is very important to build an investment portfolio that have dividend producing stock. It appears that this is very helpful in producing wealth over time (when the dividends are reinvested.) Although I really like your blog. I just started my journey into investing, I want to be a disciplined value investor and you have great information. Be well.

    Alisa

    ReplyDelete
  3. Not sure if I identified myself on my previous post.

    Be well.

    ReplyDelete
  4. Why is Nucor off the Aristocrats list if it raised its dividend?

    ReplyDelete

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