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Thursday, October 16, 2008

*Healthcare Services (HCSG) Increases Qtr. Dividend 7% and Others

I love a sale! Last week equities around the world went on sale. Some stocks that had I wondered if they would ever be cheap enough to buy were last week. I felt like my wife the day after Thanksgiving. Everywhere I turned there were stocks selling at a cut rate. But not all of them were bargains. Some of them deserved to have their prices slashed. It is our job as investors to cut through the noise and find the real values.

One indication of the strong company is the ability to raise its dividend in the face of adverse market and economic conditions. Here are a few select companies that recently raised their cash dividends:
  • BCB Bancorp (BCBP) Increases Qtr. Dividend 20% to $0.12/Share (3.63%)
  • RPM Intl (RPM) Boosts Qtr Dividend 5% to $0.20/Share (4.99%)
  • Compass Diversified (CODI) Raises Qtr Dividend 5% to $0.34/Share (10.40%)
  • Healthcare Services (HCSG) Increases Qtr. Dividend 7% to $0.16/Share (4.52%)
  • Park National (PRK) Boosts Qtr. Dividend 1% to $0.95/Share (5.09%)
After running these companies through my D4L-PreScreen.xls model, RPM with a NPV of MMA Differential of $5,538 and a dividend yield of 4.99% could warrant an additional look. HCSG has only paid a dividend for 6 years, but during that time it has an impressive record with a 3-year compound annual growth rate over 35%. This is one I will keep an eye on.

None of the others achieved the necessary NPV of MMA Differential to justify a full evaluation.

Disclosure: No position in the aforementioned stocks.

Tags: [BCBP] [CODI] [HCSG] [PRK] [RPM]

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