Dividend Increase: 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:


Eli Lilly (LLY) recently increased its quarterly dividend 15% to $0.85 per share. The dividend is payable March 10 to shareholders of record Feb. 12 with an ex-div date of Feb. 11. The yield based on the new payout is 2.2%.

Abbott Laboratories (ABT) recently increased its quarterly dividend 25% to $0.45 per share. The dividend is payable Feb. 16 to shareholders of record Jan. 15 with an ex-div date of Jan. 14. The yield based on the new payout is 1.7%.

Franklin Resources (BEN) recently increased its quarterly dividend 3.7% to $0.28 per share. The dividend is payable Jan. 15 to shareholders of record Dec. 31, with ex-div date of Dec. 30. The yield based on the new payout is 4.6.

Amgen (AMGN) recently increased its quarterly dividend 10% to $1.76 per share. The dividend is payable March 8 to shareholders of record Feb. 15, with an ex-div date of Feb. 11. The yield based on the new payout is 3.1%.

Darden Restaurants, Inc. (DRI) recently increased its quarterly dividend 23% to $0.37 per share. The dividend is payable Feb. 1 to shareholders of record Jan 8, with an ex-div date of Jan 7. The yield based on the new payout is 1.3%.

MFA Financial (MFA) recently increased its quarterly dividend 50% to $0.075 per share. The dividend is payable Jan. 29 to shareholders of record Dec. 30, with an ex-div date of Dec. 29. The yield based on the new payout is 7.8%.

Full Disclosure: No position in the aforementioned securities.

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