Monday, June 15, 2009

Target (TGT) and Clorox (CLX) confident in raising dividends

The dividend aristocrats continued their streak of success after three more members of the elite dividend index announced another increase in their dividends. Their ability to pay a dividend with such regularity, while other companies have had to either cut or eliminate their dividend payments, speaks volumes about their business model. In addition to that, the diversification and careful management of these companies’ resources has provided shareholders with long-term sustainable results. The companies that continue their commitment in raising their distributions even in this tough economic period provide an exceptional value to their stockholders.

The Clorox Company (CLX), which manufacture and markets a range of consumer products, announced an 8.70% increase to its quarterly dividend from 46 to 50 cents per share. The Clorox Company is a member of the dividend aristocrats index, and has regularly increased its quarterly dividend for the past thirty-two years. The stock currently yields 3.40%. Check my analysis of Clorox (CLX).

Target Corporation (TGT), which operates general merchandise and food discount stores in the United States, increased its quarterly dividend by 6% to 17 cents per share. This marked the 42nd consecutive annual dividend increase for Target Corporation, which is also a dividend aristocrat. The stock currently yields only 1.70%. Check my analysis of Target (TGT).

C. R. Bard, Inc. (BCR), which engages in the design, manufacture, packaging, distribution, and sale of medical, surgical, diagnostic, and patient care devices worldwide, increased its quarterly dividend by 6% to 17 cents per share. C. R. Bard, Inc. is a dividend aristocrat which has regularly increased its quarterly dividend in each of the past thirty eight years. The stock currently yields 0.90%. The slow dividend growth and the low current yield are one of the reasons why I have never analyzed this stock.

W. P. Carey & Co. LLC (WPC), which is an investment management company, increased its quarterly dividend to 49.8 cents per share, up from 49.6 cents. W. P. Carey & Co. LLC is a dividend achiever, which has increased its quarterly dividend in each of the past eleven years. The stock currently yields 7.70%.

National Fuel Gas Company (NFG), which invests in health care and human service related facilities,, increased its quarterly dividend by 3.10% to 33.50 cents per share. National Fuel Gas Company is a dividend champion, which has increased its quarterly dividend in each of the past thirty-nine years. The stock currently yields 3.70%.

Oil-Dri Corporation of America (ODC), which engages in the development, manufacture, and marketing of sorbent products, increased its quarterly dividend by 7% to 15 cents per share. Oil-Dri Corporation of America has only increased its quarterly dividend in each of the past six years. The stock currently yields 3.00%.

VSE Corporation (VSEC), which provides program management, logistics, engineering, information technology (IT), construction program, and consulting services, boosted its quarterly dividend by 11% to 5 cents per share. VSE Corporation has increased its quarterly dividend in each of the past five years. The stock currently yields only 0.70%.

Florida Public Utilities Company (FPU), which engages in the purchase, transmission, distribution, and sale of electricity and natural gas to residential, commercial, and industrial customers in Florida, announced a 2.1% boost to its quarterly dividend to 12 cents per share. Florida Public Utilities Company has increased its quarterly dividend for over ten years. The stock currently yields 3.60%.

Full Disclosure: Long Clorox

Relevant Articles:

- Clorox (CLX) Dividend Stock Analysis
- Dividend Aristocrats keep raising their dividends
- Dividend Aristocrats Strike Back
- Target Corporation (TGT) Dividend analysis

3 comments:

  1. I'm too lazy to look it up, but how does Target have 42 annual increases, but pay only $0.17 a share? Were they paying fractions of cents at some point?

    ReplyDelete
  2. To Kevin M, just guessing, but it probably has something to do with stock splits during those years. Great post! Currently looking at WPC for my own portfolio.

    ReplyDelete
  3. Kevin,

    What Bill said was correct. TGt's previous dividends were raised by a few pennies consistently. but after stock splits the changes appear pretty small.

    ReplyDelete

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