Monday, February 2, 2009

Dividend Stocks proving that not all dividends are at risk

2008 was the year that brought a ton of dividend cuts in the financial sector. Banks like Comerica, Bank of America, Citigroup, Regions Financial and First Third Bank cut dividends several times, which jeopardized the incomes of many retirees. 2009 so far brought a second round of dividend cuts from Bank of America and Comerica. Even pharmaceuticals giant Pfizer had to cut its dividend in half after announcing its acquisition of rival Wyeth. Investors are constantly bombarded with news about dividend cuts including the fact that 4Q 2008 was the worst quarter for dividends since S&P began compiling the data in 1956. One would think that a tough credit environment, bank failures, and news of big corporations laying off thousands of employees every day most companies would conserve cash in preparation for the second round of the financial Armageddon that pundits forecast. Not all companies are cutting dividends however. Stocks like Wells Fargo and General Electric have recently reaffirmed that they will maintain dividend payments. Even better, many companies are also raising payouts to shareholders.

Novartis (NVS) announced that its Board has approved a 25% increase in its annual dividend to 2.00 swiss franks or about $1.71. Novartis is an international dividend achiever, which has consistently increased its dividends since 1997. The stock currently yields 3.60%.

McGraw-Hill (MHP) announced that its Board has approved a 2.3% increase in its quarterly dividend from $0.22 to $0.225 per common share. The company also announced that in an effort to maintain liquidity, it would delay making any additional share repurchases in 2009. McGraw-Hill is a dividend aristocrat, which has consistently increased its dividends for thirty-six consecutive years. The stock currently yields 4.10%.

Praxair (PX) announced that its Board has approved an increase in its quarterly dividend from $0.375 to $0.40 per common share. Praxair Inc. is a dividend achiever which has consistently increased its dividends for sixteen consecutive years. The stock currently yields 2.60%.

Norfolk Southern (NSC) announced that its Board has approved a 6.25% increase in its quarterly dividend from $0.32 to $0.34 per common share. Norfolk Southern is a dividend achiever which has consistently increased its dividends for seven consecutive years. The stock currently yields 3.50%.

Consolidated Edison (ED) announced that its Board has approved an increase in its quarterly dividend from $0.585 to $0.59 per common share. Consolidated Edison is a dividend aristocrat, which has consistently increased its dividends for thirty-five consecutive years. The stock currently yields 5.80%.

Kinder Morgan Energy (KMP) announced that its Board has approved an increase in its quarterly dividend from $1.02 to $1.05 per unit. This represents a 14% increase over the distribution paid in 4Q 2007. Kinder Morgan Energy is a dividend achiever which has consistently increased its dividends for twelve consecutive years. The partnership units currently yield 8.50%.

California Water Service Group (CWT) announced that its Board has approved a 1.7% increase in its quarterly dividend from $0.29 to $0.295 per common share. California Water Service Group is a dividend champion, which has consistently increased its dividends for forty-two consecutive years. The stock currently yields 2.70%.

D&B (DNB) boosted its quarterly dividend from $0.30 to $0.34 per common share. The stock currently yields 1.80%.

Energen Corporation (EGN) announced that its Board has approved a 4.20% increase in its quarterly dividend from $0.12 to $0.125 per common share. Energen Corporation is a dividend champion which has consistently increased its dividends for twenty six consecutive years. The stock currently yields 1.70%.

TFS Financial Corporation (TFSL) announced that its Board has approved a 40% increase in its quarterly dividend from $0.05 to $0.07 per common share. The stock currently yields 2.20%.

The companies that definitely raised my interest for further research include Novartis, Norfolk Southers, Con Edison, Kinder Morgan, Praxair and McGraw-Hill.

Full Disclosure: At the time of this writing I owned KMR, ED, and MHP

Relevant Articles:

- Dividend Conspiracies
- Why do I like Dividend Aristocrats?
- Why do I like Dividend Achievers
- Dividend Aristocrats List for 2009

No comments:

Post a Comment

Questions or comments? You can reach out to me at my website address name at gmail dot com.

Popular Posts