This week’s cadre of dividend stocks increasing payouts can best be described as a parade of too-big-to-fail banks. As the Federal Reserve issued the results of its annual “stress test” check up on the nation’s financial institutions, nearly all received the green light to raise dividends and buy back shares.
The top six too-big-to-fail banks all passed the stress test, and all were given approval to increase dividends and institute buybacks.
The only caveat here was Bank of America Corp (NYSE:BAC), which was given conditional approval after it received some bad marks on its stress test. BAC opted to maintain its current quarterly dividend at 5 cents per share.
Although the official announcement of payout dates, etc. was not offered by these too-big-to-fail dividend stocks increasing payouts, there was an immediate proclamation by each of the following five banks to hike their dividend and increase their respective share buyback programs:
Citigroup Inc (NYSE:C) raised its quarterly dividend 400% to 5 cents per share from 1 cent, and announced a share buyback plan of up to $7.8 billion from last year’s $1.2 billion.
Goldman Sachs Group Inc (NYSE:GS) boosted its dividend 8.3% to 65 cents per share from 60 cents. No new buyback plans were released.
JPMorgan Chase & Co. (NYSE:JPM) increased its quarterly payout 10% to 44 cents from 40 cents, and essentially kept its buyback plan of up to $6.4 billion intact.
Morgan Stanley (NYSE:MS) elevated its quarterly payout 50% to 15 cents per share from 10 cents, and upped its share buyback plans to $3.1 billion from last year’s $1 billion.
Wells Fargo & Co (NYSE:WFC) lifted its quarterly payout 7.1% to 37.5 cents per share vs. 35 cents. Details of the share buyback plans were not released.
Financial giant and credit card issuer American Express Company (NYSE:AXP) also added to its quarterly payout, saying it would increase its dividend 11.5% to 29 cents per share from 26 cents.
Official details of the new dividend payouts, including dates, ex-dividend dates, etc., will likely be released according to each company’s respective regular time tables.
Although the stress test and banks were the big dividend news this week, there also were several other big-name dividend stocks increasing payouts this week.
General Mills (NYSE:GIS) increased its quarterly payout by 7.3% to 44 cents per share from 41 cents. The cereal giant will serve up the bigger dividend bowl on May 1 to shareholders of record as of Apr. 10. The stock becomes ex-dividend on Apr. 8.
GIS Dividend Yield: 3.39%
QUALCOMM, Inc. (NASDAQ:QCOM) increased its fiscal processing capabilities, boosting the signal on its dividend 14.3% to 48 cents per share from 42 cents. Qualcomm said that its new payment “will be effective for quarterly dividends payable after March 25, 2015.” No other dates were provided.
QCOM Dividend Yield: 2.8%
Realty Income Corp (NYSE:O) increased its monthly payments by 0.27% to 18.95 cents per share from 18.9 per share. The commercial property REIT’s slight dividend increase is payable Apr. 15 to shareholders of record as of Apr. 1 Shares become ex-dividend on March 30.
O Dividend Yield: 4.57%
Steel Dynamics, Inc. (NASDAQ:STLD) hardened its quarterly payout by 20% to 13.75 cents per share from 11.5 cents. The steel producer and metals recycling company will pay the new dividend on Apr. 10 to shareholder of record as of March 31. STLD goes ex-dividend on March 27.
STLD Dividend Yield: 3.04%
Xilinx, Inc. (NASDAQ:XLNX) added 6.9% to its quarterly payout, upping its dividend to 31 cents per share from 29 cents. The new dividend is payable on June 3 to shareholders of record as of May 13. The programmable devices maker’s shares will go ex-dividend on May 11.
XLNX Dividend Yield: 3.13%
As of this writing, Jim Woods was long AXP and QCOM.
