Dividends Aren't Enough: Refiners
I love cash. As an investor, nothing makes me happier than a company that returns money to shareholders, rather than spending it recklessly on a CEO’s pet projects or an ill-fated acquisition. Historically, investors have often looked at a stock’s dividend yield to identify these shareholder-friendly enterprises. But I prefer a slightly different metric -- one proven to further maximize investor returns. A 2007 study in The Journal of Finance suggests that investors should also factor net share repurchases into the equation, through a metric called the net payout ratio. According to the authors of the study, this ratio not only identifies companies that are paying back investors, but also predicts future equity returns better than the dividend yield.... more
Will Philip Morris International's Dividends Last?
Whether you’re a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can you give your portfolio what almost no other investment can -- both income and growth. At The Motley Fool, we’re avid fans of dividends -- and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, stocks in the S&P 500 that don’t pay dividends have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. That is an incredible difference -- one that you’d be crazy to not... more
Dividends Aren't Enough: Telecom
I love cash. As an investor, nothing makes me happier than a company that returns money to shareholders, rather than spending it recklessly on a CEO’s pet projects or an ill-fated acquisition. Historically, investors have often looked at a stock’s dividend yield to identify these shareholder-friendly enterprises. But I prefer a slightly different metric -- one proven to further maximize investor returns. A 2007 study in The Journal of Finance suggests that investors should also factor net share repurchases into the equation, through a metric called the net payout ratio. According to the authors of the study, this ratio not only identifies companies that are paying back investors, but also predicts future equity returns better than the dividend yield.... more
Dividend Report Card: Costco Wholesale
In the dividend report card series, we analyze financial metrics to begin answering the following questions about a company’s dividend: Over time, has this company steadily increased its payouts? How sustainable is the dividend? Does the company have room to further increase the dividend? For a full explanation of each category, click here for a tutorial.... more
Nordstrom (JWN) Authorizes $500M Stock Buyback; Declares $0.20 Quarterly Dividend; 2.6% Yield
Nordstrom, Inc. (NYSE: JWN) announced today that its board of directors has authorized a repurchase program of up to $500 million of the Company's outstanding common stock, through January 28, 2012. Nordstrom also announced today that its board of directors has approved a quarterly dividend of $0.20 per share, $0.80 annualized. The dividend is payable on September 15, 2010, to shareholders of record on August 31, 2010. The ex-dividend date is August 27, 2010. Yield on the dividend is 2.6%.... more
Schawk (SGK) Declares $0.04 Quarterly Dividend; 1.1% Yield
Schawk, Inc. (NYSE: SGK) today reported that its board of directors has declared a regular quarterly dividend of $0.04 per share, $0.16 annualized. The dividend is payable on September 30, 2010, to Schawk, Inc. Class A common stockholders of record as of September 15, 2010. The ex-dividend date is September 13, 2010. Yield on the dividend is 1.1%.... more
RLI Corp. (RLI) Approves $0.29 Per Share Quarterly Cash Dividend
RLI Corp. (NYSE: RLI) has declared a third quarter cash dividend of $0.29 per share, the same amount as the prior quarter. The dividend is payable on October 15, 2010 to shareholders of record as of September 30, 2010. RLI has paid dividends for 137 consecutive quarters and increased dividends in each of the last 35 years. The company’s dividend yield would be 2.19%, based on the $1.16 indicated annual dividend and today’s closing stock price of $52.98.... more
RLI Corp. (RLI) Declares $0.29 Quarterly Dividend; 2.2% Yield
RLI Corp. (NYSE: RLI) has declared a third quarter cash dividend of $0.29 per share, $1.16 annualized. The dividend is payable on October 15, 2010 to shareholders of record as of September 30, 2010. The ex-dividend date is September 26, 2010. Yield on the dividend is 2.2%.... more
Ruddick Corp. (RDK) Declares $0.12 Quarterly Dividend; 1.5% Yield
Ruddick Corporation (NYSE: RDK) today reported that its Board of Directors, at a regularly scheduled meeting, declared a quarterly dividend in the amount of $0.12 per share, $0.48 annualized. The dividend is to be paid on October 1, 2010, to shareholders of record on September 10, 2010. The ex-dividend date is September 8, 2010. Yield on the dividend is 1.5%.... more
Medical Properties Trust (MPW) Declares $0.20 Quarterly Dividend; 8.5% Yield
Medical Properties Trust, Inc. (NYSE: MPW) announced today that its Board of Directors declared a cash dividend of $0.20 per share of common stock, $0.80 annualized. The dividend is to be paid on October 14, 2010 to stockholders of record on September 14, 2010. The ex-dividend date is September 10, 2010. Yield on the dividend is 8.5%.... more