50 Blue-Chip Stocks Increasing Dividends in Q2 2013
by Kyle Woodley | July 1, 2013 9:00 am
[1]Even a weak June sparked by QE “tapering” fears couldn’t dampen the biggest story of 2013 — the fantastic strength of America’s broad stock-market indices through the first six months of the year.
The S&P 500 finished ahead more than 12% through June — its best return at the midway point since 1998.
But an especially sweet side story for income investors was a slew of dividend increases in some of the sturdiest blue-chip names out there, including eight Dow Jones Industrial Average components and 11 Dependable Dividend Stocks[2] — companies that haven’t just paid out quarterly dividends for at least 25 consecutive years, but that have increased them at least once every year!
That makes the following list the appropriate starting blocks for any investors trying to beef up the income side of their portfolio. Not only does it run down 50 blue-chip dividend stocks that have announced hikes in their quarterly checks, but it includes 13 companies that have yet to go ex-dividend — meaning there’s still time to buy into these names before they pay out their newly increased dividends.
Here’s a look at these 50 companies, including the new payout, the percentage increase, yield based on the end-of-quarter stock price, and payment and record dates (an asterisk denotes a stock that has not gone ex-dividend as of publication):
Apple (AAPL)
New Payout |
% increase |
Yield as of 6/30 |
Payment Date |
Record date |
$3.05/share |
15% |
3.08% |
May 16 |
May 13 |
All in all, the second quarter of 2013 was a lousy three months for Apple (AAPL[3]) shareholders, who watched their stock shed another 10% on top of the nearly 20% gashing it suffered in Q1. Perhaps the only relieving news came in April, when Apple announced a 15% improvement to its dividend, as well as an expansion of its stock repurchase authorization from $10 billion to $60 billion, which it expects to complete by the end of 2015.
American Electric Power (AEP)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.49/share |
4.3% |
4.38% |
June 10 |
May 10 |
American Express (AXP)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.23/share |
15% |
1.23% |
Aug. 9 |
July 5 |
* Goes ex-dividend July 2 |
American Express (AXP[4]) is the first of the companies on this list that has yet to go ex-dividend, with that date coming up tomorrow for an Aug. 9 payout. AXP’s improved dividend is just the cherry on top of a great first half that has seen the stock trounce the S&P 500 with 30% gains, and that included a Q1 earnings beat reported back in April.
American Water Works (AWK)
new payout |
% increase |
Yield as of 6/30 |
payment date |
record date |
$0.28/share |
12% |
2.72% |
June 3 |
May 24 |
AON (AON)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.175/share |
11% |
1.09% |
May 15 |
May 1 |
Bank of New York Mellon (BK)
New payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.15/share |
15% |
2.14% |
May 7 |
April 29 |
Baxter International (BAX)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.49/share |
9% |
2.83% |
July 7 |
June 7 |
Capital One Financial (COF)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.30/share |
500% |
1.91% |
May 23 |
May 13 |
Capital One Financial (COF[5]) investors got huge news in March when the Federal Reserve gave COF the green light to improve its dividend — at the time, a proposed increase of 20 cents annually to $1.20. The company officially declared the new dividend in early May, and distributed its first 30-cent payout a couple weeks later, juicing its annual yield from under a half-percent to nearly 2%.
Cardinal Health (CAH)
new payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.3025/share |
10% |
2.56% |
July 15 |
July 1 |
Caterpillar (CAT)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.60/share |
15.4% |
2.91% |
Aug. 20 |
July 22 |
* Goes ex-dividend July 18 |
Boy, did Caterpillar (CAT[6]) shareholders need this. At -8% year-to-date, the heavy machinery manufacturer is one of just two Dow stocks in the red through 2013’s first six months (Alcoa [AA[7]] is the other, down 10%). Poor pricing in metals and minerals has cramped miners, in turn hurting demand for many CAT products. However, the company did hike its quarterly payout, and also announced a $1 billion stock buyback program.
Chevron (CVX)
new payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$1.00/share |
11.5% |
3.38% |
June 10 |
May 17 |
Clorox (CLX)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.71/share |
11% |
3.42% |
Aug. 9 |
July 24 |
* Goes ex-dividend July 22 |
Coach (COH)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.3375/share |
13% |
2.36% |
July 1 |
June 7 |
Costco (COST)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.31/share |
12.7% |
1.12% |
May 31 |
May 17 |
It’s been a pretty good year for Costco (COST[8]). Shares have gained about 12% year-to-date, the company announced a double-digit percentage increase in its quarterly payout in early May, then later in the month, COST issued a quality earnings report[9] that included improvements in profits, same-store sales and revenues from memberships.
C.R. Bard (BCR)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.21/share |
5% |
0.77% |
Aug. 2 |
July 22 |
* Goes ex-dividend July 18 |
Darden Restaurants (DRI)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.55/share |
10% |
4.36% |
Aug. 1 |
July 10 |
* Goes ex-dividend July 8 |
Duke Energy (DUK)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.78/share |
2% |
4.62% |
Sept. 16 |
Aug. 16 |
* Goes ex-dividend Aug. 14 |
DuPont (DD)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.45/share |
5% |
3.43% |
June 12 |
May 15 |
EMC (EMC)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.10/share |
N/A^ |
1.69% |
July 23 |
July 1 |
^ First dividend |
Back in late May, struggling data storage equipment firm EMC (EMC[10]) reached into its pockets to try to reverse a couple years of stock stagnancy. The company announced its first ever quarterly dividend, a 10-cent-per-share payout, and also boosted its stock buyback plan from $1 billion to $6 billion through the end of 2015.
Exxon Mobil (XOM)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.63/share |
11% |
2.79% |
June 10 |
May 13 |
Fastenal (FAST)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.20/share |
100% |
1.75% |
May 30 |
May 2 |
Following a late-2012 dividend glut that included a 21-cent regular dividend and a special 50-cent payout, Fastenal (FAST[11]) announced a smaller 10-cent dividend for Q1 2013. Well, that payout rebounded in Q2, with the company doubling its dividend to 20 cents as its cash reserves situation improved.
FedEx (FDX)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.15/share |
7% |
0.61% |
July 1 |
June 17 |
Fifth Third Bancorp (FITB)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.12/share |
9% |
2.66% |
July 18 |
June 28 |
Hartford Financial Services (HIG)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.15/share |
50% |
1.94% |
Oct. 1 |
TBA |
* Ex-dividend date yet to be announced |
Hartford Financial Services (HIG[12]) was another big winner from the first half. HIG shares roughly tripled the S&P 500 with 38% gains, the company bumped up its share repurchase program from $500 million to $1.25 billion and Hartford gave its dividend a 50% kick in the pants. The big cash spends were made possible as HIG sold off a number of its arms to free up capital[13] and focus more on its core property-casualty insurance business.
International Business Machines (IBM)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.95/share |
12% |
1.99% |
June 10 |
May 10 |
Invesco (IVZ)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.225/share |
30% |
2.83% |
June 17 |
May 17 |
Kinder Morgan Inc. (KMI)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.38/share |
2.7% |
3.98% |
May 16 |
April 29 |
Macy’s (M)
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.25/share |
25% |
2.08% |
July 1 |
June 14 |
Medtronic (MDT)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment Date |
Record Date |
$0.28/share |
8% |
2.18% |
July 26 |
July 5 |
* Goes ex-dividend July 2 |
National-Oilwell Varco (NOV)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.26/share |
100% |
1.51% |
June 28 |
June 14 |
In May, energy equipment provider National-Oilwell Varco (NOV[14]) announced the biggest increase to its dividend since initiating the quarterly payout back in 2010, crediting its strengthening cash flow over the past few years.
NetApp (NTAP)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.15/share |
N/A^ |
1.59% |
July 23 |
July 11 |
* Goes ex-dividend July 9, ^ First dividend |
The May announcement that NetApp (NTAP[15]) would initiate a dividend and boost its stock buyback program was somewhat bittersweet, as it came alongside fiscal Q4 earnings that fell 4%, weaker-than-expected current-quarter sales estimates and news that it would cut about 900 of its roughly 13,000 employees.
NiSource (NI)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.25/share |
4.2% |
3.49% |
Aug. 20 |
July 31 |
* Goes ex-dividend July 29 |
Northrop Grumman (NOC)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.61/share |
10.9% |
2.95% |
June 12 |
May 23 |
Oracle (ORCL)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.12/share |
100% |
1.56% |
Aug. 2 |
July 12 |
* Goes ex-dividend July 10 |
Oracle (ORCL[16]) tried to add a silver lining to its second ugly earnings report of 2013. Following up a fiscal Q3 announcement in which earnings fell short of expectations, leading investors to hammer shares[17], Oracle recorded a Q4 revenue miss[18] that again spooked Wall Street. YTD, Oracle stock has dropped off nearly 8%.
PepsiCo (PEP)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.5675/share |
6% |
2.78% |
June 28 |
June 7 |
PNC Financial Services (PNC)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.44/share |
10% |
2.41% |
May 5 |
April 16 |
Potash Corp. of Saskatchewan (POT)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.35/share |
28% |
3.67% |
Aug. 2 |
July 12 |
* Goes ex-dividend July 10 |
PPG Industries (PPG)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.61/share |
3% |
1.67% |
June 12 |
May 1 |
PPG Industries’ (PPG[19]) small increase to its payout marked the 42nd year in a row that the paints and coatings company has hiked its quarterly dividend — a dividend that it has paid out uninterrupted since 1899. That easily keeps PPG Industries among our Dependable Dividend Stocks[2].
Procter & Gamble (PG)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.6015/share |
7.7% |
3.13% |
May 15 |
April 26 |
Safeway (SWY)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.20/share |
14% |
3.38% |
July 11 |
June 20 |
Southwest Airlines (LUV)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.04/share |
300% |
1.24% |
June 26 |
June 5 |
The people’s champion of airlines, Southwest (LUV[20]), has doubly rewarded investors this year, not only racking up share appreciation of about 25%, but also announcing in May that its quarterly payout would reach a much higher altitude. Specifically, its payout has gone from 1 cent to 4 cents quarterly.
Target (TGT)*
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.43/share |
19.4% |
2.5% |
Sept. 10 |
Aug. 21 |
* Goes ex-dividend Aug. 19 |
Tiffany & Co. (TIF)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.34/share |
6% |
1.87% |
July 10 |
June 20 |
TJX Companies (TJX)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.145/share |
26% |
1.16% |
June 6 |
May 16 |
UnitedHealth Group (UNH)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.28/share |
31.8% |
1.71% |
June 21 |
June 14 |
UnitedHealth Group (UNH[21]) announced its first dividend increase as a member of the Dow Jones Industrial Average in early June, capping a strong first half for the medical insurance titan. UNH shares trumped the Dow’s roughly 14% return with 21% gains, despite the company’s April announcement of a double-digit YOY decline in first-quarter earnings.
U.S. Bancorp (USB)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.23/share |
18% |
2.54% |
July 15 |
June 28 |
Viacom (VIAB)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.30/share |
11% |
1.76% |
July 1 |
June 14 |
Whirlpool (WHR)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.625/share |
25% |
2.19% |
June 15 |
May 1 |
Appliance-maker Whirlpool (WHR[22]) tripped a bit in mid-June following a 52-week period in which shares more than doubled, though the stock’s 12% year-to-date gains still match the S&P 500. The 25% increase to the payout to 62.5 cents per share marks WHR’s first change to its dividend since early 2011, when it went from 43 cents to 50 cents.
W.W. Grainger (GWW)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.93/share |
16% |
1.48% |
June 1 |
May 13 |
Xcel Energy (XEL)
New Payout |
% Increase |
Yield as of 6/30 |
Payment date |
Record date |
$0.28/share |
3.7% |
3.95% |
July 20 |
June 20 |
Kyle Woodley[23] is the Deputy Managing Editor of InvestorPlace.com[24]. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @IPKyleWoodley[25].
Endnotes:
- [Image]: https://investorplace.com/hot-topics/companies-increasing-dividends/
- Dependable Dividend Stocks: https://investorplace.com/dividend-paying-stocks/
- AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
- AXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXP
- COF: http://studio-5.financialcontent.com/investplace/quote?Symbol=COF
- CAT: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAT
- AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
- COST: http://studio-5.financialcontent.com/investplace/quote?Symbol=COST
- COST issued a quality earnings report: https://investorplace.com/2013/06/forget-walmart-and-target-costco-gets-it/
- EMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMC
- FAST: http://studio-5.financialcontent.com/investplace/quote?Symbol=FAST
- HIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=HIG
- HIG sold off a number of its arms to free up capital: http://www.bloomberg.com/news/2013-06-26/hartford-boosts-buybacks-raises-dividend-50-.html
- NOV: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOV
- NTAP: http://studio-5.financialcontent.com/investplace/quote?Symbol=NTAP
- ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL
- earnings fell short of expectations, leading investors to hammer shares: http://slant.investorplace.com/2013/03/oracle-stock-just-got-gutted-whats-next-for-enterprise-tech/
- Q4 revenue miss: http://www.bloomberg.com/news/2013-06-20/oracle.html
- PPG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PPG
- LUV: http://studio-5.financialcontent.com/investplace/quote?Symbol=LUV
- UNH: http://studio-5.financialcontent.com/investplace/quote?Symbol=UNH
- WHR: http://studio-5.financialcontent.com/investplace/quote?Symbol=WHR
- Kyle Woodley: https://www.investorplace.com/author/kyle-woodley/
- InvestorPlace.com: https://investorplace.com/
- @IPKyleWoodley: https://twitter.com/#%21/ipkylewoodley
Source URL: https://investorplace.com/2013/07/50-blue-chip-stocks-increasing-dividends-in-q2-2013/