Dividend Companies In The News 4.24.2011

A snapshot of the important news and events from the world of dividend paying companies. This week was a slow one for dividend increases, but we did have a spin-off, some earnings releases, and 2 companies announced consumer price increases for their products. Dividend Raises Southern Company (SO) said today it is increasing its annual dividend rate by 7 cents per share to $1.89 per share. The 3.9 percent increase marks the 10th straight year that Southern Company has raised the dividend on its common stock. Sonoco (NYSE: SON) today declared a $.29 per share quarterly common stock dividend, an increase from the previous quarterly dividend of $.28 per share. The dividend will be payable on June 10, 2011, to shareholders of record as of May 13, 2011. This is the 29th consecutive year... more

5 Outstanding Dividend Growth Stocks

One of the main characteristics of quality dividend stocks is that they have a strong brand name. Strong brand by itself would not provide the type of consistent long-term returns that dividend growth investors expect. Add in a wide economic moat, or a strong competitive advantage, which ensures strong pricing power and the qualitative screen for selecting stocks is complete. Examples of companies with a wide moat include Coca Cola (KO), whose products are well-recognized worldwide and are desirable by consumers, which are willing to pay extra in order to have that specific brand. The company has been able to realize above average returns on capital, which has also allowed it to generate a lot in excess cash flows, which fuel future dividend hikes. Because of these characteristics, Coca... more

13 Utility Stocks Paying Dividends Upwards of 4%

Thanks to the Fed's massive expansionary policy, government bonds yield almost nothing, if not negative. Given the low yield of bonds, high yield utility stocks offer safe and higher returns. The utility companies produce and distribute essential services such as electricity, gas, as well as water services. There are integrated companies as well. Most utility companies pay outstanding dividends. Here is a list of 13 high-yield utility large-caps, paying excellent dividends over 4%. Financial data is derived from finviz: 1. American Electric Power Co., Inc. (AEP): AEP is a major investor and owner of electric utilities in various locations. AEP owns the nation's largest electricity transmission system, a nearly 39,000-mile (63,000 km) network. The company’s P/E... more

The Top 12 Yield Generating Basic Material Stocks

Basic material producers are among the safest companies to invest for the long-run. Their products are crucial for industrial companies, as well as individuals. Most basic material companies pay good dividends, thanks to their cash-rich balance sheets. Here is a list of high-dividend U.S. large caps which offer a minimum 2% yield. Data is derived from finviz. Air Products & Chemicals, Inc. (APD) : Pennsylvania-based APD provides processed and specialty gases, performance materials, and atmospheric gases. The market capitalization of APD is $20.14 billion, and P/E ratio is 19.09, while forward P/E is 14.53. The company had an EPS growth of 9.26% over the last five years. With a net profit margin of 11.61%, APD paid a dividend yield of 2.53% last year. Recent dividend history per share are... more

8 Mid-Cap Goods Producers Yielding Over 3%: 10-Year Dividend Growth Rate Analysis

Dividends and dividend growth are a continuing point of interest, especially as so many fixed income investors are avoiding the bond markets, fearing bond value depreciation. As I have recently stated, some investors are supplementing or replacing the fixed income portion of a portfolio with equities that yield above average dividends and/or that have a strong history of raising their dividends over time.I received some feedback on a list of mid-cap consumer product makers with above average dividends, as to the dividend growth rates of the companies. Individuals are, sensibly, more interested in a company that will rapidly raise their dividends than one that may presently be slightly higher, yet not grow it, or even eventually lower it. I wanted to supplement that mid-cap list with some... more

Top Dow Dividend Stocks: Dividends vs. Options

The Dogs of the Dow strategy focuses on Dow dividend paying stocks with the highest dividend yields. Currently, the 3 highest dividend paying stocks in the Dow are AT&T (T), Verizon (VZ), and Merck (MRK). This week we'll compare current covered calls and cash secured put options to the dividend payouts for these stocks, all of whom are listed in our "High Dividend Stocks by Sector" tables. Here's how these 3 stocks have performed: Like most other Healthcare stocks, Merck has lagged the market over the last year. In 2011 it has also lagged the Healthcare sector, which is up nearly 10%. AT&T and Verizon have both surged over the past year, partially due to the smartphone revolution. AT&T benefited greatly from its exclusive sales arrangement with Apple, (AAPL), for selling the IPhone, an... more

4 'Hidden' Dividend Stocks That Warren Buffett Owns

Like other institutional asset managers, Berkshire Hathaway (BRK-A) reports their US stock positions in quarterly SEC 13F filings. While Berkshire's iconic holdings like American Express (AXP) and Coca-Cola (KO) get all of the headlines, investors may be surprised by well known companies that make up Berkshire's less famous stock holdings.Here is a list of dividend paying stocks that are "hidden" amongst Buffett's larger and more famous holdings:BANK OF NEW YORK MELLON CORP (BK)Dividend: $0.52 (1.80%)If you had to name one Berkshire Hathaway bank stock, it would probably be Wells Fargo (WFC), but Bank of New York Mellon is quickly becoming an important bank in its own right.The bank has a forward P/E of 9.79, a price/book of 1.10 and return on assets of 1.15%. While this constitutes a... more

How Safe Are These 7 Blue Chip Dividend Yields?

We wanted to get under-the-hood of some blue chips and examine the safety of their dividends and their growth prospects moving forward. Here are 7 stocks we uncovered that offer safe yields for a retirement portfolio. If you’re in to above average yields, double digit dividend growth rates and a strong history of making payouts consider Altria (MO). This tobacco manufacture has not only paid but also increased dividend payments for 42 straight years and has a current yield of 5.8%. Many refuse to hold this smoking giant due to its ‘sinful’ business and after all a bad reputation and price add-ons, or “sin taxes”, can’t be good for business. But then again, with over a billion smokers consistently providing their inelastic demand MO does have significant pricing power. The... more

10 Dividend Stocks Paying More Cash

Payback is the amount of time needed for an investment to earn its cost, undiscounted. Though not very sophisticated, payback can still help you screen for good, solid dividend growth stocks. Once you earn back your investment, some might say you are in a no-lose situation. I wouldn’t go quite that far, but you have found an investment that has provided you a good historical revenue stream, and hopefully it will continue to do so in the future. Below are several dividend stocks that recently rewarded their shareholders with increased cash dividends:PPG Industries (PPG) serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. April 21st the company increased its quarterly dividend 3.6% to $0.57/share. The dividend is payable June 10 to... more

5 Under-the-Radar Low P/E Dividend Paying Stocks

Travelers Company (TRV)Forward P/E: 10.00Dividend: $1.44 (2.50%)The international property & casualty insurance company rebounded from March 2009 lows of $35 to the current price of $61.32. In addition to the low forward P/E and solid dividend yield, the company trades at a price/sales of 1.01, a price/book of 1.01 and return on assets of 2.77%. The company has grown its revenues over the last three years, albeit slowly. From 2009 to 2010, revenues grew at 1.8%.Travelers is an insurance company with a great brand name and a reputation for excellence. Despite the financial crisis of 2008, the company has grown their per share book value and dividends every year from 2006 to 2010. Travelers appears to be a good stock trading at a good price. But considering the reasonable valuations in the... more