The past two weeks have been pretty uneventful in terms of dividend increases, mainly due to the Christmas and New Year’s holidays. Once the majority of market participants returned to their trading desks, it was again business as usual. The markets did end the week 4.20% lower, which left the largest ETF by assets that tracks S&P 500, the SPY, down 1.2% on the year. The increase in unemployment to 16 year highs didn’t help either.
The negative tone for the week was set on Monday when a Sterne Agee analyst Nick Heymann speculated that General Electric (GE) likely faces a serious decision - sustain the dividend or the AAA rating. General Electric has confirmed on a number of occasions that it’s dividend of $1.24/share is safe throughout 2009. Despite the reassurance from GE however, there still is an increased chance that GE dividends might not be safe. Check out my analysis of GE from this link.
There were several other companies that announced increases in their payments to shareholders last week.
Genesis Energy, L.P. (GEL), which engages in the pipeline transportation of crude oil, natural gas, and carbon dioxide (Co2); gathering and marketing of crude oil; wholesale marketing of Co2; and processing of syngas , announced that its Board has approved an increase in its quarterly dividend from $0.3225 to $0.33 per unit. Genesis Energy, L.P. has consistently increased its dividends since 2003. The stock currently yields 11.90%.
Robbins & Myers, Inc. (RBN), which is a supplier of systems for critical applications in global energy, industrial, chemical and pharmaceutical markets , announced that its Board has approved an 11% increase in its quarterly dividend from $0.0375 to $0.04 per common share. Robbins & Myers, Inc. has consistently increased its dividends since 2006. The stock currently yields 0.80%.
Pentair, Inc. (PNR), announced that its Board has approved a 6% increase in its quarterly dividend from $0.17 to $0.18 per common share. Pentair, Inc. is a dividend achiever which has consistently increased its dividends for almost two decades. The stock currently yields 2.70%.
American Financial Group, Inc. (AFG), announced that its Board has approved a 4% increase in its quarterly dividend to $0.13 per common share. American Financial Group, Inc. Inc. is a dividend achiever which has consistently increased its dividends since 2005. The stock currently yields 2.30%.
Of the stocks below Pentair shows some promise for my dividend growth strategy. PNR could be an interesting dividend play on dips below $24. I like the fact that the company has managed to double its dividends almost every seven years on average.
Full Disclosure: Long GE
- Is GE’s dividend safe?
- Why do I like Dividend Achievers
- Analysis of General Electric
- When to sell my dividend stocks?
Popular Posts
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing holdings, but ...
-
I review the list of dividend increases as part of my monitoring process. This process helps me review how the companies I own are doing. It...
-
Yield on Cost is a fascinating metric. It calculates the dividend yield based on the original cost at the time of purchase. Yield on cost i...
-
My retirement strategy is focused on living off dividends. Dividends are more stable, predictable and reliable than capital gains. Dividends...
-
A famous saying goes that there are two things certain in this world: death and taxes. While I am pretty sure I can’t escape death, I know t...
-
As a shareholder, there are two ways to make profits from a stock. The first way is when you sell your stock for a gain, after it has incre...
-
I review the list of dividend increases as part of my monitoring process every week. This exercise helps me review the performance of existi...
-
A pattern of steady dividend payments and dividend increases is only possible if a business can generate enough cashflows to support operati...
-
Planning your retirement is one of the most challenging exercises in the world. There are plenty of ways, methods and advisors, who try to i...
-
The employer match is one of the best features of workplace retirement accounts such as 401 (k) plans ( Pre-tax and Roth). It’s a contributi...