The following post was written by Saj Karsan. Saj regularly writes for Barel Karsan, a site dedicated to finding and discussing value investments, and applying logic to investment decisions (as opposed to falling prey to psychological biases).
LCA Vision (LCAV) is a provider of laser vision corrective surgeries. Demand for these non-essential, expensive surgeries is strongly correlated to levels of consumer confidence. As one can imagine, this correlation has resulted in the number of surgeries performed this year to be slashed in half as compared to last year. Combined with the fact that the company's cost structure is fairly rigid (medical/laser equipment, service locations and staff still have to be present even if not used to capacity!), and the prospects for this company look grim.
This business model would make most investors head for the exits at economic times like these. For investors who look to buy businesses rather than stocks, however, this company still hassome value. And it is precisely because most investors headed for the exits that value investors were able to buy into this company for far less than it is worth.
When we last looked at LCAV, it traded with a market cap of $64 million, despite the fact that it had $56 million in cash alone! When looked at from the point of view of a buyer of an entire business (as value investors like to do), one was essentially paying $8 million to purchase a business that had earned an average of $15 million in net income the last four years. Yes, it had lost $7 million in the last quarter, but management was closing unprofitable locations, reducing capital expenditures, and believed to have cut expenses such that the company's cash flow would break even in 2009.
Since the stock's low just two months ago, the stock is up some 250%! Investors who avoided the herd mentality, and instead focused on buying businesses selling for below their worth were handsomely rewarded.
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Tuesday, May 12, 2009
Monday, May 11, 2009
Eleven companies bucking the dividend cuts trend
BB&T (BBT) and Legg Mason(LM) are the latest financial stock to drastically cut dividends . This didn’t shock anyone, as the financial sector has received a pretty bad reputation for its enormous losses and massive dividend cuts. The careful income investor who is looking for ways to generate some income from their investments should definitely look past dividend yield and instead focus on the sustainability of the payout, the dividend policy of the company and management’s desire to keep raising dividends. Some companies, whose sales are somewhat recession resistant keep generating enough cash flow to justify sharing their wealth with shareowners while also financing their operations efficiently. The bullish momentum after last weeks dividend increases from Exxon Mobil (XOM) and IBM is holding up quite well. Some solid companies such as PepsiCo and Alcon rewarded shareholders with increases in dividend income.
PepsiCo (PEP), which manufactures, markets, and sells various snacks, carbonated and non-carbonated beverages, and foods worldwide, raised its quarterly dividend by 6% to $0.45 per share. PepsiCo is a dividend aristocrat, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 37 consecutive years. The stock currently yields 3.60%. Check my analysis of PepsiCo.
PepsiCo’s chairman and CEO commented on the dividend increase, which was a major confident boost for shareholders: "We are pleased to announce our thirty-seventh annual dividend increase, reflecting the strength of our cash flow and balance sheet. Even in this difficult economy, we are committed to return cash to our shareholders while continuing to invest in the long-term growth of our business."
Alcon (ACL), which engages in the development, manufacture, and marketing of pharmaceuticals, surgical equipment and devices and consumer eye care products, raised its annual dividend by 50% to $3.49 per share. Alcon is an international dividend achiever which has rewarded its shareholders with an uninterrupted streak of increased dividends for 7 consecutive years. The stock currently yields 3.60%.
Spectra Energy Partners, LP (SEP), a master limited partnership which engages in the transportation of natural gas through interstate pipeline systems as wells as the storage of natural gas in underground facilities in the United States, raised its quarterly distributions from $0.36 to $0.37 per unit. Spectra Energy Partners, LP has rewarded unitholders with increased distributions for 7 consecutive quarters. The partnership currently yields 6.50%.
Tower Group Inc. (TWGP), which provides a range of specialized property and casualty insurance products and services to small to mid-sized businesses and individuals, raised its quarterly dividend by 40% to $0.07 per share. This has been the third time that Tower Group Inc. has increased dividends since 2007. The stock currently yields only 1.00%.
Avista Corp. (AVA), which engages in the generation, transmission, and distribution of energy and energy-related businesses in the United States and Canada, raised its quarterly dividend by 5% to $0.42 per share. Avista Corp has rewarded its shareholders with an uninterrupted streak of increased dividends since 2003. The stock currently yields 5.30%.
RLI Corp. (RLI), which underwrites property and casualty insurance primarily in the United States, raised its quarterly dividend by 3.80% to $0.27 per share. RLI Corp. is a dividend champion, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 34 consecutive years. The stock currently yields only 2.20%.
Expeditors International of Washington, Inc. (EXPD), which engages in the exploration, production, transportation, and sale of crude oil and natural gas, boosted its semi-annual dividend by 19% to $0.19 per share. Expeditors International of Washington, Inc. is a dividend achiever which has rewarded its shareholders with an uninterrupted streak of increased dividends for 16 consecutive years. The stock currently yields only 1.10%.
Bunge Limited (BG), which engages in the agriculture and food business worldwide, raised its annual dividend by 10.50% to $0.21 per share. Bunge Limited has rewarded its shareholders with an uninterrupted streak of increased dividends since 2002. The stock currently yields only 1.50%.
Chesapeake Utilities Corporation (CPK), which engages in the distribution, transmission, and marketing of natural gas, raised its annual dividend from $0.305 to $0.315 per share. Chesapeake Utilities Corporation has rewarded its shareholders with an uninterrupted streak of dividends raises since 2004. The stock currently yields 4.00%.
National HealthCare Corporation (NHC), which operates and manages long-term health care centers and associated assisted living centers, retirement centers, home health care programs in the United States, raised its annual dividend by 8.30% to $0.26 per share. National HealthCare Corporation has rewarded its shareholders with an uninterrupted streak of dividends raises since 2004. The stock currently yields 4.00%.
Medical Products maker Steris Corp. (STE) raised its annual dividend by 38% to $0.11 per share. Steris Corp. has rewarded its shareholders with an uninterrupted streak of dividends raises since 2006. The stock currently yields 1.70%.
In this market it is essential for dividend investors to select only best dividend stocks whose business model could deliver a sustainable increase in earnings, which could unleash the dividend growth potential of corporations.
Full Disclosure: Long PEP
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Friday, May 8, 2009
Exxon Mobil (XOM) Dividend Stock Analysis
Exxon Mobil Corporation engages in the exploration, production, transportation, and sale of crude oil and natural gas. The company is a component of the S&P 500, Dow Jones Industrials and the Dividend Aristocrats indexes. Exxon Mobil has been consistently increasing its dividends for 27 consecutive years. From the end of 1998 up until December 2008 this dividend growth stock has delivered an annual average total return of 10.50% to its shareholders.
At the same time company has managed to deliver an impressive 25.40% average annual increase in its EPS since 1999. The forecasts for the foreseeable future are for a 40% -50% contraction in the EPS in 2009 followed by an increase in EPS to a $6 to $6.50 range in 2010. The sheer scale of the company gives it economies of scale. Its productivity is further boosted by the efficiency of developing new projects in Quatar, Norway and US. Exxon Mobil does business on over 200 countries and derives only 30% of its revenues from the US.
The ROE has consistently increased from less than 13% in 1999 to over 38% in 2008.
Annual dividends have increased by an average of 7% annually since 1999, which is much lower than the growth in EPS. Currently, the number of shares is lower than the number of shares at the time of the merger between Exxon and Mobil. The tremendous increase in commodities prices over the past decade has greatly contributed to the strength in earnings per share. A 7 % growth in dividends translates into the dividend payment doubling almost every ten years. If we look at historical data, going as far back as 1963, XOM has actually managed to double its dividend payment every eleven years on average. Just a few days ago Exxon boosted its dividend by 5% for the 27th year in a row. The dividend is very well covered at the moment.
The dividend payout has declined from a high of 74% in 1999 to a low of 18% by 2008. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings. The company has returned money to shareholders exclusively through share buybacks, which are typically not as consistent as increases in dividends.
Despite the low dividend payout ratio and low P/E ratio, I would need a dividend yield of at least 3% to initiate a position in XOM. I would appreciate it greatly if the company increases its payout of dividends over time at the expense of reducing its massive share buybacks. XOM has the potential to achieve an above average dividend growth over the next decade if oil prices increase over the next few year.
In comparison Chevron Corporation (CVX) trades at a P/E multiple of 5.60 and yields 4.00%, while British Petroleum (BP) trades at a P/E multiple 5 while yielding 8.40%.
I would consider initiating a position in Exxon Mobil on dips below $56.
Full Disclosure: None
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At the same time company has managed to deliver an impressive 25.40% average annual increase in its EPS since 1999. The forecasts for the foreseeable future are for a 40% -50% contraction in the EPS in 2009 followed by an increase in EPS to a $6 to $6.50 range in 2010. The sheer scale of the company gives it economies of scale. Its productivity is further boosted by the efficiency of developing new projects in Quatar, Norway and US. Exxon Mobil does business on over 200 countries and derives only 30% of its revenues from the US.
The ROE has consistently increased from less than 13% in 1999 to over 38% in 2008.
Annual dividends have increased by an average of 7% annually since 1999, which is much lower than the growth in EPS. Currently, the number of shares is lower than the number of shares at the time of the merger between Exxon and Mobil. The tremendous increase in commodities prices over the past decade has greatly contributed to the strength in earnings per share. A 7 % growth in dividends translates into the dividend payment doubling almost every ten years. If we look at historical data, going as far back as 1963, XOM has actually managed to double its dividend payment every eleven years on average. Just a few days ago Exxon boosted its dividend by 5% for the 27th year in a row. The dividend is very well covered at the moment.
The dividend payout has declined from a high of 74% in 1999 to a low of 18% by 2008. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings. The company has returned money to shareholders exclusively through share buybacks, which are typically not as consistent as increases in dividends.
Despite the low dividend payout ratio and low P/E ratio, I would need a dividend yield of at least 3% to initiate a position in XOM. I would appreciate it greatly if the company increases its payout of dividends over time at the expense of reducing its massive share buybacks. XOM has the potential to achieve an above average dividend growth over the next decade if oil prices increase over the next few year.
In comparison Chevron Corporation (CVX) trades at a P/E multiple of 5.60 and yields 4.00%, while British Petroleum (BP) trades at a P/E multiple 5 while yielding 8.40%.
I would consider initiating a position in Exxon Mobil on dips below $56.
Full Disclosure: None
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Wednesday, May 6, 2009
The New Dividend Aristocrats
The dividend aristocrats universe is shrinking according to analysts as some companies freeze dividends while others cut their payments. S&P might even consider lowering the standards for the elite dividend index. One of the criteria that could be lowered is the requirement for annual dividend increases to 20 years or fewer. This is in response to the fact that the number of aristocrats has decreased from 64 in 2001 to potentially less than 40 by year-end.
The stocks that come to mind as solid candidates for the Dividend Aristocrats index is AT&T (T) and Brown Forman (BF-B). AT&T has increased its dividends for 25 consecutive years and is a member of the S&P 500. AT&T last raised its quarterly dividends in December 2008 by 2.5% to $0.41/share. The stock currently yields 6.40%. Check my analysis of AT&T.
Brown Forman (BF-B) has increased its dividends for 25 consecutive years as well. The company engages in the manufacture, bottling, import, export, and marketing of alcoholic beverage brands. Some of its well-known brands include Jack Daniel's, Finlandia, and Southern Comfort. The stock currently yields 2.60%.
If the criteria were lowered to including stocks, which have raised dividends for 20 years, this could bring in these S&P 500 stocks to the index:
Cintas Corp (CTAS), which provides corporate identity uniforms and related business services in the United States and Canada, has increased its dividends for over 22 consecutive years. The Cincinnati, Ohio based company currently yields 1.80%.
Health Care Property Investors Inc (HCP), operates as a real estate investment trust in the United States. HCP has an uninterrupted record of increasing distribution for 23 consecutive years. The REIT currently yields 9.30%.
McCormick & Company (MKC), which engages in the manufacture, marketing, and distribution of flavor products and other specialty food products to the food industry worldwide, has rewarded shareholders with consistent dividend increases for 22 consecutive years. The stock currently yields 3.30%.
Northern Trust (NTRS) has increased dividends for 22 consecutive years. The provider of banking and financial services to large and mid-sized corporations and financial institutions currently yields 2.10%.
T. Rowe Price Group, Inc. (TROW) which provides investment management services to corporations, corporate, public, and Taft-Hartley retirement plans, foundations, and endowments has increased payouts for 22 consecutive years. This financial company currently yields 2.70%.
Chevron Corp (CVX) has consistently increased dividends for 21 years. This integrated energy company worldwide currently yields 4.10%. Check my analysis of Chevron Corp.
The Travelers Companies (TRV), which is a provider of various commercial and personal property and casualty insurance products and services to businesses, government units, associations, currently yields 3%. The stock has raised dividends for 21 consecutive years.
Progress energy (PGN), which engages in the generation, transmission, distribution, and sale of electricity in North Carolina, South Carolina and Florida has a record of 21 consecutive annual dividend increases. This utility currently yields 7.30%.
At the end of the day I agree with the Bloomberg article that “In the end it isn't the number of stocks you own, but owning the right stocks.” If the S&P lowered its criteria for inclusion in the elite dividend index, then this would distort the basket.
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The stocks that come to mind as solid candidates for the Dividend Aristocrats index is AT&T (T) and Brown Forman (BF-B). AT&T has increased its dividends for 25 consecutive years and is a member of the S&P 500. AT&T last raised its quarterly dividends in December 2008 by 2.5% to $0.41/share. The stock currently yields 6.40%. Check my analysis of AT&T.
Brown Forman (BF-B) has increased its dividends for 25 consecutive years as well. The company engages in the manufacture, bottling, import, export, and marketing of alcoholic beverage brands. Some of its well-known brands include Jack Daniel's, Finlandia, and Southern Comfort. The stock currently yields 2.60%.
If the criteria were lowered to including stocks, which have raised dividends for 20 years, this could bring in these S&P 500 stocks to the index:
Cintas Corp (CTAS), which provides corporate identity uniforms and related business services in the United States and Canada, has increased its dividends for over 22 consecutive years. The Cincinnati, Ohio based company currently yields 1.80%.
Health Care Property Investors Inc (HCP), operates as a real estate investment trust in the United States. HCP has an uninterrupted record of increasing distribution for 23 consecutive years. The REIT currently yields 9.30%.
McCormick & Company (MKC), which engages in the manufacture, marketing, and distribution of flavor products and other specialty food products to the food industry worldwide, has rewarded shareholders with consistent dividend increases for 22 consecutive years. The stock currently yields 3.30%.
Northern Trust (NTRS) has increased dividends for 22 consecutive years. The provider of banking and financial services to large and mid-sized corporations and financial institutions currently yields 2.10%.
T. Rowe Price Group, Inc. (TROW) which provides investment management services to corporations, corporate, public, and Taft-Hartley retirement plans, foundations, and endowments has increased payouts for 22 consecutive years. This financial company currently yields 2.70%.
Chevron Corp (CVX) has consistently increased dividends for 21 years. This integrated energy company worldwide currently yields 4.10%. Check my analysis of Chevron Corp.
The Travelers Companies (TRV), which is a provider of various commercial and personal property and casualty insurance products and services to businesses, government units, associations, currently yields 3%. The stock has raised dividends for 21 consecutive years.
Progress energy (PGN), which engages in the generation, transmission, distribution, and sale of electricity in North Carolina, South Carolina and Florida has a record of 21 consecutive annual dividend increases. This utility currently yields 7.30%.
At the end of the day I agree with the Bloomberg article that “In the end it isn't the number of stocks you own, but owning the right stocks.” If the S&P lowered its criteria for inclusion in the elite dividend index, then this would distort the basket.
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Monday, May 4, 2009
Busiest week for dividends increases in 2009
Last week marked the busiest week for dividend increases in 2009 as several blue chip companies such as IBM, Costco and Exxon Mobil raised their payouts. It is always bullish to see companies which have always rewarded shareholders with raised payouts continue operating in a shareholder friendly pattern of behavior.
ExxonMobil (XOM), which engages in the exploration, production, transportation, and sale of crude oil and natural gas, raised its quarterly dividend by 5% to $0.42 per share. Exxon Mobil is a dividend aristocrat, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 27 consecutive years. The stock of the largest energy company in the world currently yields only 2.40%. Check out my analysis of XOM.
International Business Machines (IBM), which develops and manufactures information technology products and services worldwide, announced a 10% boost to its quarterly dividend to $0.55 per share. IBM is a dividend achiever, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 14 consecutive years. The stock currently yields only 2.00%. Check out my analysis of IBM.
W.W. Grainger, Inc. (GWW), which distributes facilities maintenance and other related products in North America., announced a 10% boost to its quarterly dividend to $0.55 per share. W.W. Grainger, Inc. is a dividend aristocrat, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 38 consecutive years. The stock currently yields only 2.00%. Check out my analysis of GWW.
Costco (COST), which operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities, announced an increase to its quarterly dividend from $0.16 to $0.18 per share. Costco has rewarded its shareholders with an uninterrupted streak of increased dividends since 2004. The stock currently yields only 1.30%.
Occidental Petroleum Corporation (OXY), which operates as an oil and gas exploration and production company, announced an increase to its quarterly dividend from $0.32 to $0.33 per share. Occidental Petroleum Corporation has rewarded its shareholders with an uninterrupted streak of increased dividends since 2003. The stock currently yields only 2.20%.
Safeway Inc. (SWY), which operates as a food and drug retailer in North America, announced a 21% boost to its quarterly dividend to $0.10 per share. Safeway Inc. has rewarded its shareholders with an uninterrupted streak of increased dividends since 2005. The stock currently yields only 1.60%.
Energy Transfer Equity, L.P. (ETE), a master limited partnership which through its general partnership interest in Energy Transfer Partners, L.P., engages in the natural gas midstream, transportation, and storage in the United States, announced an increase to its quarterly distributions from $0.51 to $0.525 per unit. Energy Transfer Equity, L.P. has rewarded its unitholders with an uninterrupted streak of increased dividends since 2006. The partnership currently yields 8.10%
Valmont Industries, Inc. (VMI), which produces fabricated metal products; metal and concrete pole, and tower structures; and mechanized irrigation systems in the United States and internationally, announced a 15% increase in its quarterly distributions to $0.15 per share. Valmont Industries, Inc. has rewarded its shareholders with an uninterrupted streak of increased dividends since 2002. The stock currently yields only 0.90%
BOK Financial Corp. (BOKF), which provides various financial products and services to commercial and industrial customers, and other financial institutions and consumers in the United States, announced an increase in its quarterly dividends from $0.225 to $0.24 per share. BOK Financial Corp. has rewarded its shareholders with an uninterrupted streak of increased dividends since 2005. The stock currently yields only 2.40%
AmeriGas Partners, L.P. (APU), a master limited partnership operates as a retail propane distributor in the United States, boosted its quarterly distributions by 5% to $0.67 per unit. AmeriGas Propane, Inc., has rewarded its unitholders with an uninterrupted streak of increased dividends since 2005. The partnership currently yields 8.30%
UGI Corporation (UGI), engages in the distribution and marketing of energy products and related services in the United States and internationally, boosted its quarterly dividend payment by 4% to $0.20 per share. UGI Corporation is a dividend achiever, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 22 years. The stock currently yields 3.40%
Boardwalk Pipeline Partners, LP (BWP), a master limited partnership which engages in the interstate transportation and storage of natural gas in the United States, boosted its quarterly distributions from $0.38 to $0.385 per unit. Boardwalk Pipeline Partners, LP has rewarded its unitholders with an uninterrupted streak of increased dividends since 2006. The partnership currently yields 9.30%
Alliance Resource Partners, L.P. (ARLP), a master limited partnership which engages in the production and marketing of coal for utilities and industrial users in the United States., announced an increase to its quarterly distributions from $0.715 to $0.73 per unit. Alliance Resource Partners, L.P. has rewarded its unitholders with an uninterrupted streak of increased dividends since 2000. The partnership currently yields 8.60%
It is certainly bullish to see companies such as Exxon Mobil continuing to reward stockholders with raised payouts. The company has paid out dividends every quarter since 1911. I would end this weeks dividend growth review with a quote from the founder of Exxon John D. Rockefeller:” Do you know the only thing that gives me pleasure? It's to see my dividends coming in.”
Full Disclosure: Long GWW
This post was featured on Carnival of Personal Finance #204
Relevant Articles:
- Master Limited Partnerships (MLPs)
- Why do I like Dividend Aristocrats?
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ExxonMobil (XOM), which engages in the exploration, production, transportation, and sale of crude oil and natural gas, raised its quarterly dividend by 5% to $0.42 per share. Exxon Mobil is a dividend aristocrat, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 27 consecutive years. The stock of the largest energy company in the world currently yields only 2.40%. Check out my analysis of XOM.
International Business Machines (IBM), which develops and manufactures information technology products and services worldwide, announced a 10% boost to its quarterly dividend to $0.55 per share. IBM is a dividend achiever, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 14 consecutive years. The stock currently yields only 2.00%. Check out my analysis of IBM.
W.W. Grainger, Inc. (GWW), which distributes facilities maintenance and other related products in North America., announced a 10% boost to its quarterly dividend to $0.55 per share. W.W. Grainger, Inc. is a dividend aristocrat, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 38 consecutive years. The stock currently yields only 2.00%. Check out my analysis of GWW.
Costco (COST), which operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities, announced an increase to its quarterly dividend from $0.16 to $0.18 per share. Costco has rewarded its shareholders with an uninterrupted streak of increased dividends since 2004. The stock currently yields only 1.30%.
Occidental Petroleum Corporation (OXY), which operates as an oil and gas exploration and production company, announced an increase to its quarterly dividend from $0.32 to $0.33 per share. Occidental Petroleum Corporation has rewarded its shareholders with an uninterrupted streak of increased dividends since 2003. The stock currently yields only 2.20%.
Safeway Inc. (SWY), which operates as a food and drug retailer in North America, announced a 21% boost to its quarterly dividend to $0.10 per share. Safeway Inc. has rewarded its shareholders with an uninterrupted streak of increased dividends since 2005. The stock currently yields only 1.60%.
Energy Transfer Equity, L.P. (ETE), a master limited partnership which through its general partnership interest in Energy Transfer Partners, L.P., engages in the natural gas midstream, transportation, and storage in the United States, announced an increase to its quarterly distributions from $0.51 to $0.525 per unit. Energy Transfer Equity, L.P. has rewarded its unitholders with an uninterrupted streak of increased dividends since 2006. The partnership currently yields 8.10%
Valmont Industries, Inc. (VMI), which produces fabricated metal products; metal and concrete pole, and tower structures; and mechanized irrigation systems in the United States and internationally, announced a 15% increase in its quarterly distributions to $0.15 per share. Valmont Industries, Inc. has rewarded its shareholders with an uninterrupted streak of increased dividends since 2002. The stock currently yields only 0.90%
BOK Financial Corp. (BOKF), which provides various financial products and services to commercial and industrial customers, and other financial institutions and consumers in the United States, announced an increase in its quarterly dividends from $0.225 to $0.24 per share. BOK Financial Corp. has rewarded its shareholders with an uninterrupted streak of increased dividends since 2005. The stock currently yields only 2.40%
AmeriGas Partners, L.P. (APU), a master limited partnership operates as a retail propane distributor in the United States, boosted its quarterly distributions by 5% to $0.67 per unit. AmeriGas Propane, Inc., has rewarded its unitholders with an uninterrupted streak of increased dividends since 2005. The partnership currently yields 8.30%
UGI Corporation (UGI), engages in the distribution and marketing of energy products and related services in the United States and internationally, boosted its quarterly dividend payment by 4% to $0.20 per share. UGI Corporation is a dividend achiever, which has rewarded its shareholders with an uninterrupted streak of increased dividends for 22 years. The stock currently yields 3.40%
Boardwalk Pipeline Partners, LP (BWP), a master limited partnership which engages in the interstate transportation and storage of natural gas in the United States, boosted its quarterly distributions from $0.38 to $0.385 per unit. Boardwalk Pipeline Partners, LP has rewarded its unitholders with an uninterrupted streak of increased dividends since 2006. The partnership currently yields 9.30%
Alliance Resource Partners, L.P. (ARLP), a master limited partnership which engages in the production and marketing of coal for utilities and industrial users in the United States., announced an increase to its quarterly distributions from $0.715 to $0.73 per unit. Alliance Resource Partners, L.P. has rewarded its unitholders with an uninterrupted streak of increased dividends since 2000. The partnership currently yields 8.60%
It is certainly bullish to see companies such as Exxon Mobil continuing to reward stockholders with raised payouts. The company has paid out dividends every quarter since 1911. I would end this weeks dividend growth review with a quote from the founder of Exxon John D. Rockefeller:” Do you know the only thing that gives me pleasure? It's to see my dividends coming in.”
Full Disclosure: Long GWW
This post was featured on Carnival of Personal Finance #204
Relevant Articles:
- Master Limited Partnerships (MLPs)
- Why do I like Dividend Aristocrats?
- Why do I like Dividend Achievers
- IBM Dividend Stock Analysis
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