Monday, May 8, 2017

9 Companies Creating Real Wealth With Higher Cash Dividends

A stock dividend, also known as a "scrip dividend", is a dividend payment made with stock instead of cash. Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? In short, a stock dividend is nothing more than a glorified stock split. At the end of the process, the shareholder has more shares that are worth less. Like a stock split, you can not create value by issuing paper and getting nothing in exchange.

Below are several select companies that recently decided to create real value for their shareholders by raising their cash dividends:

Marriott International, Inc. (MAR) is a lodging company. Recently the company increased its quarterly dividend 10% to $0.33 per share. The dividend is payable June 30, 2017 to stockholders of record on May 19, 2017, with an ex-dividend date of May 17, 2017. The yield based on the new payout is 1.4%.

Barnes Group Inc. (B) is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. Recently the company increased its quarterly dividend 7.7% to $0.14 per share. The dividend is payable May 26, 2017 to stockholders of record on May 19, 2017, with an ex-dividend date of May 17, 2017. The yield based on the new payout is 1.0%.

Phillips 66 (PSX) is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses. Recently the company increased its quarterly dividend 11% to $0.70 per share. The dividend is payable June 1, 2017 to stockholders of record on May 18, 2017, with an ex-dividend date of May 16, 2017. The yield based on the new payout is 3.5%.

Oaktree Capital Group, LLC (OAK) is an investment manager specializing in alternative investments that operates through investment management segment, which consists of the investment management services that the Company provides to its clients. Recently the company increased its quarterly dividend 13% to $0.71 per share. The dividend is payable May 12, 2017 to stockholders of record on May 8, 2017, with an ex-dividend date of May 4, 2017. The yield based on the new payout is 6.2%.

Apple Inc. (AAPL) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Recently the company increased its quarterly dividend 10.5% to $0.63 per share. The dividend is payable May 18, 2017 to stockholders of record on May 15, 2017, with an ex-dividend date of May 11, 2017. The yield based on the new payout is 1.7%.

PepsiCo, Inc. (PEP) is a global food and beverage company whose brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Recently the company increased its quarterly dividend 7% to $0.805 per share. The dividend is payable June 30, 2017 to stockholders of record on June 2, 2017, with an ex-dividend date of May 31, 2017. The yield based on the new payout is 2.9%.

Baxter International Inc. (BAX) provides renal and hospital products. Recently the company increased its quarterly dividend 23% to $0.16 per share. The dividend is payable July 3, 2017 to stockholders of record on June 2, 2017, with an ex-dividend date of May 31, 2017. The yield based on the new payout is 1.2%.

Trinity Industries, Inc. (TRN) is a diversified industrial company that owns businesses providing products and services to the energy, chemical, agriculture, transportation and construction sectors. Recently the company increased its quarterly dividend 18% to $0.13 per share. The dividend is payable July 31, 2017 to stockholders of record on July 14, 2017, with an ex-dividend date of July 12, 2017. The yield based on the new payout is 1.9%.

Cognex Corporation (CGNX) is a provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. Recently the company increased its quarterly dividend 13% to $0.085 per share. The dividend is payable June 16, 2017 to stockholders of record on June 2, 2017, with an ex-dividend date of May 31, 2017. The yield based on the new payout is 0.4%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long AAPL, PEP. See a list of all my Dividend Growth Portfolio holdings here.

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Tags: AAPL, PEP, PSX, BAX, MAR, TRN, B, OAK, CGNX,

1 comment:

  1. Some interesting choices made. Some real solid companies and some that I didn't expect to see on here to be honest! Awesome list.

    ReplyDelete

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