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Monday, August 10, 2020

7 Companies Showing Confidence With Increased Dividends

A person’s character is determined by how they behave when no one else is looking and during difficult times. In much the same way, we can learn a lot about a company’s management when they face adversity. One metric I look at closely during a downturn is cash generation relative to earnings. The ability of a company to grow its dividend throughout the economic cycle is highly dependent on the management’s ability to generate cash in a downturn.

Below are several select companies with a management confident enough to increase their cash dividends:

Illinois Tool Works (ITW) recently increased its quarterly dividend 6.5% to $1.14 per share. The dividend is payable Oct. 14, 2020 to stockholders of record on Sep. 30, 2020, with an ex-dividend date of Sep. 29, 2020. The yield based on the new payout is 2.4%.

Tractor Supply (TSCO) recently increased its quarterly dividend 14% to $0.40 per share. The dividend is payable Sep. 9, 2020 to stockholders of record on Aug. 24, 2020, with an ex-dividend date of Aug. 21, 2020. The yield based on the new payout is 1.1%.

Microchip Technology (MCHP) recently increased its quarterly dividend 0.1% to $0.368 per share. The dividend is payable Sep. 4, 2020 to stockholders of record on Aug. 21, 2020, with an ex-dividend date of Aug. 20, 2020. The yield based on the new payout is 1.4%.
Payable Sept. 4; for shareholders of record Aug. 21; ex-div Aug. 20.

KLA (KLAC) recently increased its quarterly dividend 5.9% to $0.90 per share. The dividend is payable Sep. 1, 2020 to stockholders of record on Aug. 17, 2020, with an ex-dividend date of Aug. 14, 2020. The yield based on the new payout is 1.8%.

Dover (DOV) recently increased its quarterly dividend 1% to $0.495 per share. The dividend is payable Sep. 15, 2020 to stockholders of record on Aug. 31, 2020, with an ex-dividend date of Aug. 28, 2020. The yield based on the new payout is 1.9%.

Arbor Realty Trust (ABR) recently increased its quarterly dividend 3.3% to $0.31 per share. The dividend is payable Aug. 31, 2020 to stockholders of record on Aug. 17, 2020, with an ex-dividend date of Aug. 14, 2020. The yield based on the new payout is 12.9%.

AudioCodes (AUDC) recently increased its quarterly dividend 7.7% to $0.14 per share. The dividend is payable Sep. 1, 2020 to stockholders of record on Aug. 17, 2020, with an ex-dividend date of Aug. 14, 2020. The yield based on the new payout is 0.8%.

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.

Stocks that have recently cut their dividends:

Capital One Financial (COF) - cuts dividend by 75%
BP (BP) - cuts dividend by 50%
BlackRock TCP Capital (TCPC) - cuts dividend by 16%

Full Disclosure: Long ITW,

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Tags: ITW, TSCO, MCHP, KLAC, DOV, ABR, AUDC
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