1.) An abrupt or permanent shift in a company’s business model as a result of business conditions.
2.) A dividend yield that is higher than average and/or higher than others in the industry.
3.) Diminishing cash available to pay dividends.
Ultimately, the ability of a company to pay its dividend is determined by its cash position – both cash on its balance sheet and its ability to generate cash flow. Below are several companies that are NOT cutting their dividends, but instead raising them:
Entertainment Properties Trust (EPR), a real estate investment trust (REIT), develops, owns, leases, and finances entertainment and related properties in the United States and Canada. February 23rd the company increased its quarterly dividend 7% to $0.75 per share. The dividend is payable April 16, 2012 to shareholders of record on March 30, 2012. The yield based on the new payout is 7.0%.
The Chubb Corporation (CB) provides property and casualty insurance to businesses and individuals. February 23rd the company increased its quarterly dividend 5.1% to $0.41 per share. The dividend is payable April 3, 2012 to shareholders of record on March 16, 2012. The yield based on the new payout is 2.4%.
Psychemedics Corporation (PMD) provides testing services for the detection of abused substances through the analysis of hair samples in the United States. February 23rd the company increased its quarterly dividend 25% to $0.15 per share. The dividend is payable to shareholders of record as of March 5, 2012 to be paid on March 19, 2012. This will be the Company’s 62nd consecutive quarterly dividend. The yield based on the new payout is 6.1%.
BlackRock, Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. February 23rd the company increased its quarterly dividend 9% to $1.50 per share from $1.375 per share. The dividend is payable on March 23, 2012 to shareholders of record as of March 7, 2012. The yield based on the new payout is 3.0%.
WesBanco, Inc. (WSBC) operates as a holding company for WesBanco Bank, Inc. that provides various financial products and services. It engages in generating deposits and originating loans. February 23rd the company increased its quarterly dividend to $0.17 per share. The dividend is payable on April 2, 2012 to shareholders of record on March 9, 2012. The yield based on the new payout is 3.9%.
Solar Capital Ltd. (SLRC) is a business development company specializing in investments in leveraged companies, including middle market companies. February 22nd the company increased its quarterly dividend 4% to $0.60 per share. The dividend is payable on April 3, 2012 to stockholders of record on March 20, 2012. The yield based on the new payout is 10.2%.
Essex Property Trust, Inc. (ESS), a real estate investment trust (REIT), engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities primarily in the West Coast of the United States. February 22nd the company increased its quarterly dividend 5.8% to $1.10 per share. The dividend is payable on April 13, 2012 to shareholders of record as of March 30, 2012. The yield based on the new payout is 3.2%.
Analog Devices, Inc. (ADI) engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits (ICs) used in industrial, automotive, consumer, and communication applications. February 22nd the company increased its quarterly dividend 20% to $0.30 per share. The dividend is payable on March 28, 2012 to all shareholders of record at the close of business on March 9, 2012. The yield based on the new payout is 3.0%.
Evans Bancorp, Inc. (EVBN) operates as the holding company for Evans Bank, N.A. that provides various banking products and services to consumers and commercial customers in western New York. February 22nd the company increased its semi-annual dividend 10% to $0.22 per share. The dividend is payable on April 10, 2012, to shareholders of record as of March 20, 2012. The yield based on the new payout is 3.1%.
MOCON, Inc. (MOCO) develops, manufactures, markets, and services measurement, analytical, and monitoring products. February 22nd the company increased its quarterly dividend 5% to $0.10 per share. The dividend is payable on May 18, 2012, to shareholders of record on May 4, 2012. The yield based on the new payout is 2.5%.
Texas Roadhouse, Inc. (TXRH) operates a full-service, casual dining restaurant chain in the United States. February 21st the company increased its quarterly dividend 12.5% to $0.09 per share. This payment will be distributed on March 30, 2012 to shareholders of record at the close of business on March 14, 2012 and represents an increase from the cash dividend of $0.08 per share of common stock declared each quarter in 2011. The yield based on the new payout is 2.2%.
Autoliv, Inc. (ALV) develops, manufactures, and supplies automotive safety systems to automotive industry. February 21st the company increased its quarterly dividend 4.4% to $0.47 per share. The dividend is payable on Thursday, June 7, 2012 to stockholders of record on the close of business on May 23, 2012. The ex-date is Monday, May 21. The yield based on the new payout is 2.8%.
Packaging Corporation of America (PKG) produces and sells container board and corrugated products in the United States. February 21st the company increased its quarterly dividend 25% to $1.00 per share. The first quarterly dividend of $0.25 per share will be paid on April 13, 2012 to shareholders of record as of March 15, 2012. The yield based on the new payout is 3.4%.
The Allstate Corporation (ALL) engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses. February 21st the company increased its quarterly dividend 4.8% to $0.22 per share. the dividend is payable on April 2, 2012 to stockholders of record at the close of business on March 5, 2012. The yield based on the new payout is 2.8%.
Public Service Enterprise Group Incorporated (PEG) operates in the energy industry primarily in the northeastern and mid Atlantic United States. February 21st the company increased its quarterly dividend 3.6% to $0.355. The dividend is payable on March 31, 2012, to shareholders of record on March 9, 2012. The yield based on the new payout is 4.6%.
Genuine Parts Company (GPC) distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials. February 21st the company increased its quarterly dividend 10% to $0.495 per share. The dividend is payable April 2, 2012 to shareholders of record March 9, 2012. GPC has paid a cash dividend every year since going public in 1948, and 2012 marks the 56th consecutive year of increased dividends paid to shareholders. The yield based on the new payout is 3.1%.
S.Y. Bancorp, Inc. (SYBT) operates as the bank holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Kentucky; southern Indiana and Indianapolis, Indiana; and Cincinnati, Ohio. February 21st the company increased its quarterly dividend 5.6% to $0.19 per share. The dividend is payable on April 2, 2012, payable to stockholders of record as of March 12, 2012. The yield based on the new payout is 3.4%.
Fidus Investment Corporation (FDUS) provides customized mezzanine debt and equity financing solutions to lower middle-market companies. February 17th the company increased its quarterly dividend 6.25% to $0.34 per share. The dividend is payable on March 28, 2012 to stockholders of record as of March 14, 2012. The yield based on the new payout is 9.6%.
Nordstrom, Inc. (JWN), a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. February 17th the company increased its quarterly dividend 17% to $0.27 per share. The dividend is payable on March 15, 2012 to shareholders of record on March 1, 2012. The yield based on the new payout is 2.1%.
NextEra Energy, Inc. (NEE) engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. February 17th the company increased its quarterly dividend 9% to $0.60 per share. The dividend is payable on March 15, 2012, to shareholders of record on March 2, 2012. The yield based on the new payout is 4.0%.
Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of health care products worldwide. February 17th the company increased its quarterly dividend 6.25% to $0.51 per share. This marks the 40th consecutive year that ABT has increased its dividend payout and the 353rd consecutive quarterly dividend to be paid since 1924. The dividend is payable May 15, 2012, to shareholders of record at the close of business on April 13, 2012. The yield based on the new payout is 3.6%.
Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends and those expected to in 2012; 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 ABT, GPC in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.
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Tags: [ABT] [GPC] [ALL] [EPR] [CB] [BLK] [ESS] [PMD] [WSBC] [SLRC] [ADI] [EVBN] [MOCO] [TXRH] [ALV] [PKG] [PEG] [SYBT] [FDUS] [JWN] [NEE]
