Joplin Tornado Blows Away Empire District's Dividend

Empire District Electric Company is yet another victim of the horrific devastation from the tornado in Joplin this past weekend. The stock had initially declined modestly earlier this week, but it plunged yesterday by 15%, wiping out $125mm in market value after the company suspended its dividend for two quarters. The company cited 8-10k customers that will be out of service for the forseeable future that will result in 10-15% loss of revenue and damage repair of $20-$30mm before potential insurance recoveries.click to enlargeIs this a potential opportunity? It would appear so, though it will take time to play out and likely not reattain its recent 23+ level for at least a year.If the company is correct that the dividend will be eliminated for just 2 quarters (saving about $20mm),... more

A Dividend Cut Might Actually Be an Opportunity

There is a great deal of belief by many that when a company cuts its dividend that the shares should be sold. That, at least to me, ran counter to my experience of 30 plus years of trading under my belt. More often than not, when bad news is announced after a long and lengthy decline, that event often pinpoints the climatic end of the decline marking a excellent buying area. Conversely, the time to sell a stock is often after the good and expected news is released. Selling shares is more likely to be viewed as a trading opportunity due to stocks' natural tendency to rise year to year. Now, I understand an income investor wishing to sell the shares as it no longer produces the desired income. But, might it also be the right time to buy the shares for appreciation, as well as future... more

United Technologies: Dividend Stock Analysis

United Technologies Corporation (UTX) provides technology products and services to the building systems and aerospace industries worldwide. The company operates in six segments: Pratt & Whitney, Otis, Carrier, Sikorsky, UTC Fire & Security and Hamilton Sundstrand. United Technologies is a component of the Dow Jones Industrials and the dividend achievers indexes. United Technologies has paid uninterrupted dividends on its common stock since 1936 and increased payments to common shareholders every year for 17 years. The most recent dividend increase was in April, when the Board of Directors approved a 12.90% increase to 48 cents/share. The major competitors of United Technologies include Honeywell (HON), General Electric (GE) and Boeing (BA). Over the past decade this dividend growth stock... more

The Fool's 5 Dividend Payers to Save Your Portfolio

We continue to examine stock portfolio recommendations from luminary publications to see whether we can mix ETFs and equities to create a portfolio with good risk/return properties that is easy to live with for the long term investor. The Fool's Matt Koppenheffer approach is not to simply grab the biggest yields available. He wants to look back 30 years from now at the long-term returns. In addition to worthwhile yields, he wants quality companies that we can expect to be around 30 years from now. With that in mind, here are five stocks that fit the bill. All five have dividend yields well in excess of the S&P's, trade at reasonable valuations. All of these businesses have what it takes to continue to succeed for decades to come. His selections are: Company Dividend... more

2 Leading MLPs Paying Tax Free Stock Dividends

MLPs have become popular with investors after the Alerian MLP Index shot up 150% off its low in late 2008. In addition their yields are relatively high with tax advantage treatment. MLPs receive tax preferences because they are building energy infrastructure in the US, a national priority. However tax hassle comes with the distributions. The annual tax package is sent on a K-1 form around March of each year and is not easy to understand. Many unit holders need assistance from tax accountants or computer tax packages and then have to keep track of annual tax data while owning the investment. For those who like MLPs but would rather purchase shares in corporations there is an alternative. Kinder Morgan and Enbridge Energy, 2 leading MLPs, have set up limited liability corporations, which... more

3 Undervalued Basic Materials Dividend Stocks

Standard & Poors shows the Basic Materials as being the 2nd worst sector year-to-date in 2011, up only .84%, lagging only the dreaded Financial sector, which was down -2.99%, as of May 25th. One might think that such poor share performance would suggest lousy future growth prospects for Basic Materials stocks, but, on the contrary, Standard & Poors shows the 2011 estimated EPS growth for this sector as second only to Energy stocks - (click charts to expand): (Data Source: Standard & Poors. EPS Estimates as of 5-18-2011) Digging back further into past years, 2006 was the record year for overall S&P earnings, and even though 2010 was a good year, only 5 out of the 10 sectors managed to exceed their 2006 aggregate EPS figures: The Basic Materials sector, along with most other sectors, is... more

The Crazy 8 High-Yield Small-Cap Dividend Growth Stocks

Like most investors interested in dividend growth stocks we have tended to limit our focus to high-quality large-cap dividend payers. However, when reading the comments on an article "link here" posted by Low Sweat Investing, a zealous supporter of dividend growth investing, a commenter made a suggestion that tweaked my interest. The following is a quote excerpt:... more

Viacom Increases Dividend

The board of directors of Viacom Inc. (VIA.B) recently increased the company's quarterly cash dividend on its class A and class B common stock by 67% to 25 cents per share.The company will pay the dividend on July 1, 2011 to shareholders of record as of June 15, 2011. We believe that the rise in dividend was mainly driven by the company's blockbuster financial results and huge cash availability. The company intends to enhance share holders' value by means of raising dividends or increasing share repurchases. The company has already bought 11.4 million common shares worth $500 million in the second quarter of 2011. Moreover, Viacom possesses a strong balance sheet with $1,555 million of cash and cash equivalents. The company plans to utilize the excess cash available for share buybacks and... more

15 Dividend Stocks Building Wealth With Dividend Increases

Have you ever wondered just where are all the get-rich-now infomercial millionaires? I know several people who have purchased one or more of these get-rich-now kits, but I don't know of anyone who actually got rich from purchasing the kit. Warren Buffett and Bill Gates didn't build their fortunes with a get-rich-now kit. They worked hard built it steadily over time. In much the same way, a disciplined approach to investing, such as dividend growth stocks, can be highly effective. Though it may seem boring to many, I find it exciting to see my income growing as the finish line approaches. Below are several companies building their shareholders' wealth with increased cash dividends: The H.J. Heinz Company (HNZ) manufactures and markets food products for consumers, food-service,... more

11 Stocks That Recently Raised Their Dividend

Outside of a buyout, an increased dividend payment represents one of the best pieces of news a company’s shareholders could hope for. Generally, an increasing dividend means a steady stream of income and a rising stock price – two good signs for long-term investors. A stock often remains a good buy after announcing a dividend increase. When a company raises its dividend, just a when insiders buy their company’s stock, investors on the outside can get a better gauge on a firm’s future prospects. The following companies have recently raised their dividend. Unless otherwise noted, they merit your attention as potential long-term investments. Dr Pepper Snapple Group, Inc. (DPS) is a $9.17 billion market cap company. The Quick Ratio for DPS is 0.8 (the higher the better). click... more