Is Family Dollar Stores A Buy For Dividend Investors Today?

Family Dollar Stores, Inc. (FDO) operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. This dividend champion has paid dividends since 1976 and has managed to increase them for 38 years in a row. The company's latest dividend increase was announced in February 2014 when the Board of Directors approved a 19.10% increase in the quarterly dividend to 31 cents /share. The company's peer group includes Dollar General (DG), Dollar Tree (DLTR), and Wal-Mart Stores (WMT). Over the past decade this dividend growth stock has delivered an annualized total return of 6.60% to its shareholders. The company has managed to deliver a 10.40% average increase in annual EPS over the past decade. Family Dollar is expected to earn $3.15 per share in 2014 and $3.51 per share in 2015. In comparison, the company earned $3.83/share in 2013. (click to... Read more