4 Dividend Stocks Showing You the Money
Dividend checks continue to beef up in Corporate America, as more companies jack up their distribution rates.
Let’s take a closer look at some of the companies that inched their payouts higher this past week.
Let's start with Parker Hannafin (NYSE: PH). The motion and control technology specialist moved its quarterly disbursements 4% higher to $0.27 a share. Investors are being spoiled here, as this is Parker Hannafin's second uptick this year alone.
The Aflac (NYSE: AFL) duck is also quacking louder. The insurer's new payout rate -- $0.30 a share -- is 7% ahead of its previous disbursements. Aflac is also resuming its share repurchase program, something that it clearly takes seriously as it has bought back 232.1 million shares since 1994.
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A Bond Yield Bonanza for These Companies
Johnson & Johnson (NYSE: JNJ) put its AAA bond rating on the table last week and crushed McDonald’s (NYSE: MCD) recent bond yield record by issuing a 10-year with a coupon under 3% priced to yield 3.15% and a 30-year with 4.5% coupon, 4.63% yield. How good is that? At the 10-year yield, Johnson & Johnson could improve cash flow by issuing bonds and buying back its own higher yielding stock. Since interest expense reduces taxable earnings and dividends don’t, the math is close, even at the 30-year yield. To find companies that could take advantage of the cheap money, I searched for A or better bond ratings and debt with 6% or higher coupon maturing within the next five years. Some of the hits are shown in the table below along with the range of coupon rates, amount of debt maturing in... more
Duke Energy: Dividend Dynamo or Disaster?
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America’s slew of dividend cuts and suspensions over the past few years has demonstrated, it’s not enough simply to buy a high yield. You also need to make sure those payouts are sustainable. Let’s examine how Duke Energy (NYSE: DUK) stacks up in four critical areas, to see whether it’s a dividend dynamo or a disaster in the making.... more
Nucor: Dividend Dynamo or Disaster?
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as Corporate America’s slew of dividend cuts and suspensions over the past few years has demonstrated, it’s not enough simply to buy a high yield. You also need to make sure those payouts are sustainable. Let’s see how Nucor (NYSE: NUE) stacks up in four critical areas to determine whether it’s a dividend dynamo or a disaster in the making.... more
SYSCO: Dividend Dynamo or Disaster?
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as Corporate America’s slew of dividend cuts and suspensions over the past few years has demonstrated, it’s not enough simply to buy a high yield. You also need to make sure those payouts are sustainable. Let’s examine how SYSCO (NYSE: SYY) stacks up in four critical areas to determine whether it’s a dividend dynamo or a disaster in the making.... more
Will Microsoft'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
How Safe Are Paychex's Dividends?
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
An Apple Dividend Could Produce Big Returns for Apple Stockholders
Apple (Nasdaq: AAPL) is sitting on a huge pile of cash. Is it time to pay a dividend? I recently asked Motley Fool Income Investor advisor James Early about Apple and got his take on some dividend stocks on his radar. Mac Greer: James, you’re The Motley Fool’s resident dividend guy. Apple was sitting on around $46 billion in cash and investments, as of the end of last quarter. Should Apple start paying a dividend?... more
Genuine Parts (GPC) Elects Robert Loudermilk, Jr. to Board; Declares $0.41 Quarterly Dividend, 3.9% Yield
Genuine Parts Company (NYSE: GPC), announced the election of Robert C. "Robin" Loudermilk, Jr., as a new Director of the Company. Mr. Loudermilk is currently President and Chief Executive Officer of Aarons, Inc. Mr. Loudermilk has held the position of President and Chief Operating Officer for 13 years and has been Chief Executive Officer for two years. Mr. Loudermilk has served as a Director of Aaron's since 1983. Aarons, Inc., a NYSE company, is the nation's leader in sales and lease ownership, including specialty retailing of office furniture, home furnishings, appliances and electronics. Mr. Gallagher stated, "Robin Loudermilk is a successful executive with a wealth of business experience and knowledge. We are fortunate to have him joining our Board and we look forward to his... more
Chicago Rivet & Machine (CVR) Declares $0.10 Quarterly Dividend; 2.4% Yield
Chicago Rivet & Machine Co. (AMEX: CVR) declared a regular quarterly dividend of $0.10 per share, $0.40 annualized. The dividend is payable September 20, 2010 to shareholders of record at the close of business on September 3, 2010. The ex-dividend date is September 1, 2010. Yield on the dividend is 2.4%.... more