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
Popular Posts
-
Companies that grow dividends tend to have better financial health and produce sustained earnings and revenue growth. Dividends help identif...
-
Dividend Growth Investing is a strategy that focuses on companies that consistently raise dividends out of their rising stream of earnings....
-
Johnson & Johnson (JNJ), together with its subsidiaries, is engaged in the research and development, manufacture, and sale of various pr...
-
Welcome to another edition of my dividend increase reports. Every week, I look at the list of dividend increases as part of my portfolio mon...
-
I reviewed three companies which raised dividends last week. Each of these companies has managed to boost dividends annually for at least te...
-
As part of my investment review process, I monitor the list of dividend increases every week. This exercise allows me to see any recent divi...
-
MSC Industrial Direct Co. (MSM) distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada...
-
Last year, I launched my premium newsletter titled Dividend Growth Investor Newsletter . In the newsletter, I build a portfolio of dividend ...
-
There is so much mental energy spent by investors, media and gurus spent on “guessing” the market top , market bottom , and whether we are i...
-
Imagine that you have two companies that are selling for the same valuation, which are also in the same industry and have similar current yi...
