Railroad stock CSX (NYSE: CSX) has been chugging along in 2010 with strong year-to-date gains. The company is sharing its success with shareholders via a dividend increase. Also hiking its dividend payout is insurance and financial giant Accenture (NYSE: ACN).
A few smaller companies also rewarded shareholderes with dividend increases, and these picks are interesting not just because of their dividend opportunities, but also their stock performance. You’ll find one small-cap restaurant stock boosting its dividend yield to almost 2%, and its shares are up 30% year-to-date.
Here are the highlights from dividend increases in the last week:
CSX Dividend Increase
On Wednesday, CSX (NYSE: CSX) approved an 8% quarterly dividend increase, from 24 cents to 26 cents a share. Annualized, this $1.04 payout gives CSX stock a dividend yield of nearly 1.9%.
One of the top railroad companies in the U.S., the fortunes of CSX are closely tied to the broader economy and shipping activity. And as rates have remained high and shipping has picked up, CSX shares have tallied an impressive 13% gain so far in 2010 — four times the broader market. However, shares have been a bit volatile in recent months.
CSX has a long history of dividends, paying out since 1922. The rail stock reports earnings on Oct. 12.
Accenture Dividend Increase
Accenture (NYSE: ACN) reported strong fourth-quarter results this week, and share prices have rallied — to the tune of over 7% this week. Those earnings from Accenture were sweet enough for investors, but the icing on the cake was a Quarterly increase of 20% from 37.5 cents to 45 cents a share. That gives ACN stock a current dividend yield of almost exactly 4%.
For the fourth quarter, Accenture saw net income surge 75% to $445.5 million or 66 cents a share, compared with 39 cents per share last year.
CAN stock is up over 8% this year — almost three times the S&P’s 3% gains — but more impressive is the recent rebound since the end of August. Accenture is up over 20% in the last month alone.
American Financial Dividend Increase
American Financial Group (NYSE:
AFG) declared a quarterly dividend of 16.25 cents per share this week, an 18% increase from the previous payout of 13.75 cents a share. That gives American Financial a new dividend yield of about 2.1%.
The dividend is payable on Oct. 25 to shareholders of record on Oct. 15. The small-cap insurance holding company has been paying dividends since 1987.
AFG stock has performed quite well in 2010, up about 22% on the year. It’s expected to report earnings on or around Oct. 25.
Clarcor Dividend Increase
Clarcor (NYSE: CLC) declared an increase in its quarterly dividend this week, from 9.75 cents to 10.5 cents a share. The 7.7% dividend increase gives the manufacturer a new yield of about 1.1%. The dividend is payable Oct. 22 to shareholders of record Oct. 8.
Clarcor is a Tennessee-based company that provides industrial and environmental filtration products, as well as consumer and industrial packaging. Though much smaller than rail giant CSX with a market cap just shy of $2 billion, the companies share a reliance on the broader economic and shipping trends. The result has been a similar rise in CLC stock as with CSX — about a 19% increase for this small-cap industrial stock.
Cracker Barrel Dividend Increase
Cracker Barrel Old Country Store (NASDAQ: CBRL) has had a breakout 2010, with shares gaining 30% year-to-date — nearly 10 times the gains of the S&P and Dow! Due to that success, it increased its quarterly payday by 10%, from 20 cents a share to 22 cents.
The dividend is payable on Nov. 5 to shareholders of record on Oct. 15. Cracker Barrel’s dividend increase gives CBRL stock a new yield of about 1.7% at current valuations. And while you may not think of this small-cap restaurant stock as a dividend giant, over the last five years, Cracker Barrel has delivered a compounded annual growth rate in its quarterly dividend of 11%!
The rustic, old-timey feel of Cracker Barrel seems to be connecting with consumers despite a broader trend of tighter purse strings and weak spending. CBRL stock is up 50% in the last 12 months and is just a few dollars shy of a new 52-week high. The company will report quarterly earnings on or around Nov. 23.
As of this writing, Jeff Reeves did not own a position in any of the stocks named here.
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