Texas Instruments (NYSE:TXN) engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company raised its quarterly distributions by 23.50% to 21 cents per share. This marked the ninth consecutive annual dividend increase for Texas Instruments. Yield: 2.90%
On the surface, Texas Instruments seems like a company with strong dividend growth, sustainable dividend payout and above average yield. In addition, the company would likely join the list of Dividend Achievers in 2013.
However, investors who look closely at the numbers would realize that much of the dividend growth has been mostly due to expansion of the dividend payout ratio. Earnings have tended to be volatile, which means that future dividend growth above $1 per share in annual dividends would be very difficult to achieve organically. In addition, it currently is trading at 21 times earnings. I find the stock to be a hold at current levels.
ConAgra (NYSE:CAG) operates as a food company primarily in North America. The company operates through two segments, Consumer Foods and Commercial Foods. The company raised its quarterly dividend by 4.20% to 25 cents per share. This marked the 6th consecutive annual dividend increase for ConAgra. Yield: 3.60%
The company cut distributions in 2006, and has been increasing them very slowly since then. The trend in earnings per share has been erratic over the past decade, which led to the cut in 2006. I would continue monitoring the situation at ConAgra, but without any sustainable earnings growth over the next decade, the company might be unable to even achieve a dividend achiever status in four years.
Cracker Barrel (NASDAQ:CBRL), through its subsidiaries, engages in the development and operation of the Cracker Barrel Old Country Store restaurant and retail concept in the United States. The company raised its quarterly dividend by 25% to 50 cents per share. The new rate also represents a 100% increase over last year’s distribution of 25 cents per share. Cracker Barrel has raised dividends for 10 years in a row. The company looks attractively valued, and seems to have an adequately covered dividend. I would consider adding it to my list for further research. Yield: 3%
The First of Long Island Corporation (NASDAQ:FLIC) operates as a bank holding company for The First National Bank of Long Island that provides financial services. The company raised its quarterly dividend by 8.70% to 25 cents per share. This marked the 17th consecutive annual dividend increase for First of Long Island Corporation.
This bank has managed to quietly double EPS over the past decade, while raising distribuions by 13.40% per year on average over the same time period. I would consider adding it to my list for further research. Yield: 3.20%
Full Disclosure: Long EPD, MCD, YUM, O