Monday, May 15, 2017

9 Stocks Delivering Good News With Higher 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:

The Clorox Company (CLX) is a manufacturer and marketer of consumer and professional products and sells its products primarily through mass retail outlets, e-commerce channels, wholesale distributors and medical supply distributors. Recently the company increased its quarterly dividend 5% to $0.84 per share. The dividend is payable August 4, 2017 to stockholders of record on July 19, 2017, with an ex-dividend date of July 17, 2017. The yield based on the new payout is 2.6%.

SAP SE (SAP) is a software and service provider that offers enterprise application software. Recently the company increased its quarterly dividend 2.1% to $0.95 per share. The dividend is payable May 22, 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 1.3%.

Sturm, Ruger & Company, Inc. (RGR) is engaged in the design, manufacture, and sale of firearms to domestic customers. Recently the company increased its quarterly dividend 9.1% to $0.48 per share. The dividend is payable May 31, 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 3.4%.

Southern Copper Corporation (SCCO) is an integrated copper producer. It produces copper and, in the production process, obtains several by-products, including molybdenum, silver, zinc, sulfuric acid and other metals. Recently the company increased its quarterly dividend 50% to $0.12 per share. The dividend is payable May 31, 2017 to stockholders of record on May 17, 2017, with an ex-dividend date of May 15, 2017. The yield based on the new payout is 0.9%.

Franco-Nevada Corporation (FNV) is a gold-focused royalty and stream company. The Company has interests in silver, platinum group metals, oil and gas and other resource assets. Recently the company increased its quarterly dividend 4.5% to $0.23 per share. The dividend is payable June 29, 2017 to stockholders of record on June 15, 2017, with an ex-dividend date of June 13, 2017. The yield based on the new payout is 1.4%.

Canadian Pacific Railway Limited (CP) owns and operates a transcontinental freight railway in Canada and the United States. Recently the company increased its quarterly dividend 12% to $0.5625 per share. The dividend is payable July 31, 2017 to stockholders of record on June 30, 2017, with an ex-dividend date of June 28, 2017. The yield based on the new payout is 1.1%.

Tractor Supply Company (TSCO) is an operator of rural lifestyle retail stores that is focused on supplying the needs of recreational farmers and ranchers and others, as well as tradesmen and small businesses. Recently the company increased its quarterly dividend 12% to $0.27 per share. The dividend is payable June 6, 2017 to stockholders of record on May 22, 2017, with an ex-dividend date of May 18, 2017. The yield based on the new payout is 1.8%.

TELUS Corporation (TU) is a telecommunications company. Recently the company increased its quarterly dividend 2.6% to C$0.4925 per share. The dividend is payable July 4, 2017 to stockholders of record on June 9, 2017, with an ex-dividend date of June 7, 2017. The yield based on the new payout is 4.3%.

Microchip Technology Incorporated (MCHP) is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. Recently the company increased its quarterly dividend 0.1% to $0.3615 per share. The dividend is payable June 6, 2017 to stockholders of record on May 23, 2017, with an ex-dividend date of May 19, 2017. The yield based on the new payout is 1.9%.

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: No position in the aforementioned securities. See a list of all my Dividend Growth Portfolio holdings here.

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- 3 Higher-Quality, High-Yield Dividend Stocks
- 10 Stocks With Sustainable Dividend Growth
- 12 Dividend Growth Stocks With A Good Yield/Growth Mix

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Tags: CLX, SAP, RGR, SCCO, FNV, CP, TSCO, TU, MCHP,

2 comments:

  1. Excellent, thanks for that. Awesome.

    ReplyDelete
  2. Thank you, I am always interested in what companies are raising their dividends. However, isn't it just as newsworthy when a company lowers its dividend? Or when a company with years of consistent annual dividend increases fails to raise its dividend as anticipated? How about regular articles on these dividend events as well?

    ReplyDelete

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