Along with fourth-quarter earnings season, this time of year also brings the next wave of ex-dividend dates and dividend payments. Investors can use my Blue Chip Growth investing advisory to stay on top of earnings season as well as ex-dividend dates.
Investors are wise to stay abreast on what to expect from the strongest dividend stocks. Yield-seekers may be happy to know that at least these three dividends stocks to buy have declared their next quarterly dividend payments.
I’ve compiled a complete list of ex-dividend dates here, and you can read more about the best dividend stocks in my Blue Chip Growth investing advisory.
Here are the details on three of the best dividend-payers:
AmerisourceBergen Corp. (NYSE:ABC)
AmerisourceBergen Corp. (NYSE:ABC) grabbed headlines when it declared a quarterly dividend of 29 cents per share. Shareholders of record on Feb. 17 will be paid on Mar. 2.
AmerisourceBergen has a strong track record of dividend increases, having more than doubled its quarterly payout in the past three years. At current prices, ABC has a 1.2% annual dividend yield. ABC is a “strong buy.”
During the fourth quarter, AmerisourceBergen saw continued demand for its Specialty Group business. Compared with the year ago quarter, company-wide revenue jumped 15.1% to $33.6 billion, which beat the consensus estimate of $31.53 billion by 6.7%.
Meanwhile, AmerisourceBergen stock posted a loss of $199.95 million or 91 cents per share. Excluding non-recurring costs and merger-and-acquisition costs, adjusted earnings were $1.14 per share, which trounced the earnings estimate of 97 cents per share by nearly 18%.
Looking ahead to fiscal 2015, ABC management expects adjusted earnings per share between $4.45 and $4.55 per share and revenue growth between 10% and 11%.
L Brands Inc (NYSE:LB)
Specialty retailer L Brands Inc (NYSE:LB) announced that it is hiking up its annual dividend by 47%, from $1.36 to $2 per share. L Brands also announced a special dividend of $2 per share.
So, LB shareholders of record on Feb. 20 will receive an ordinary dividend of 50 cents per share — and a special dividend of $2 — on Mar. 6, which marks the 161st quarter in a row that L Brands has paid a dividend.
That’s not all 00 L Brands also launched a new $250 million share repurchase program, which includes the $91 million in share repurchases left on its existing program. Last year, L Brands bought back $84 million of LB stock, and it appears that this trend will continue in 2015.
L Brands released its January, fourth-quarter and 2014 sales data. Last month, sales rose 7% to $783.1 million (compared with the year ago period). Last quarter, net sales also increased 7% to $4.07 billion. For 2014, net sales advanced 6% to $11.45 billion.
Reynolds American, Inc (NYSE:RAI)
Reynolds American, Inc. (NYSE:RAI) also declared a cash dividend of 67 cents per share. RAI stock’s dividend will be payable on April 1 to shareholders of record on Mar. 10.
With a 3.9% annual dividend yield, RAI is currently a very strong dividend stock to buy. Reynolds American also has an enviable dividend history, having paid out dividends for 43 quarters in a row. I recommend RAI as a “strong buy.”
During the fourth quarter, Reynolds American faced higher costs related to the pending $25 billion acquisition of Lorillard Inc. (NYSE:LO) Compared with the year ago quarter, net income fell 49% to $148 million or 28 cents per share.
However, excluding special items, adjusted earnings were 87 cents per share, matching analysts’ estimates. Meanwhile, revenue excluding excise taxes rose 5% year over year to $2.13 billion, also meeting analysts’ projections.
RAI shares climbed modestly after the tobacco giant announced that the Lorillard takeover is on schedule to close in the first half of 2015. All in all, this was a solid report.
Louis Navellier has seen booms, plunges and meltdowns (and everything in between) over the last 15 years as editor of the popular Blue Chip Growth investing advisory. Since launching Blue Chip Growth in 1998, he has generated returns of 345% versus the S&P’s 96%, beating the market by more than 3 to 1. Using a combination of quantitative and fundamental analysis, Mr. Navellier identifies the high-quality stocks that will give his readers market-beating returns — in all market conditions. His latest analysis has uncovered five stocks that will weather the coming market volatility and rebound strongly, handing investors who get in now double- and triple-digit returns. You can find complete details here in his latest Special Report: 5 Rotation Rally “Return Giants” That Can Crush Volatile Markets. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
