Last week was one of the biggest in recent memory for high-profile stocks increasing their dividends. Among the top companies increasing their dividend payouts were a beverage giant, two tobacconists, a paint seller, a power tools maker, a sneaker retailer and a couple of very large industrial conglomerates. That’s a lot of companies tallying high dividend yields!
The variety and sheer number of big names increasing dividends last week clearly demonstrates that 2011 will likely be a great year for income-oriented investors. We’ve got a long list to cover, so let’s get right to it.
Specialty chemical maker Albemarle (NYSE: ALB) increased its quarterly dividend to 16.5 cents per share from 14 cents per share. The new dividend is payable Apr. 1 to shareholders of record on March 15. The dividend increase comes just weeks after ALB reported better-than-expected fourth-quarter profit on increased sales in each of its business units.
Natural resources giant BHP Billiton Ltd. (NYSE: BHP) dug up an increased quarterly dividend of 46 cents per share, a penny more than the current quarterly payout. The Anglo-Australian firm has decided to return capital to shareholders after the recent collapse of several large deals, including the company’s attempt to buy Canadian fertilizer giant Potash Corp. of Saskatchewan (NYSE: POT). The dividend hike came as the company reported a 71.5% rise in fiscal first-half net profit to $10.5 billion.
Nuclear energy and uranium miner Cameco Corp (NYSE: CCJ) powered its quarterly dividend to 10 cents per share from the current payout of 7 cents per share. The new dividend is payable on Apr. 15 to shareholders of record as of March 31. The company’s profit — not including a one-time charge — in the fourth-quarter easily bested expectations. Cameco attributed the gains to higher uranium prices and lower production costs.
Beverage giant and global corporate icon Coca-Cola Co. (NYSE: KO) poured out at generous dividend, increasing its payout to 47 cents per share from the prior dividend of 44 cents. The dividend is payable Apr. 1 to shareholders of record as of March 15. The increase marks the 49th consecutive year the company has upped its dividend.
Cable TV behemoth Comcast (NASDAQ: CMCSA) aired a 19% increase in its quarterly dividend as a result of outstanding fourth-quarter results. The new quarterly cash dividend of 11.25 cents per share will be payable to shareholders of record as of April 6. The strong earnings report is Comcast’s first since it completed its purchase of a controlling stake in NBCUniversal from General Electric (NYSE: GE).
Electrical products manufacturer Cooper Industries (NYSE: CBE) sparked up its shareholder payout, announcing an increased quarterly dividend of 29 cents per share over the current 27 cents per share. The new dividend will be paid on April 1 to shareholders of record as of Feb. 28. In late January the company reported a 10% increase in fourth-quarter profits on amped-up revenue in both of its major segments.
Athletic footwear seller and perennial shopping mall tenant Foot Locker (NYSE: FL) laced up its shoes and ran toward a higher quarterly dividend, raising its payout 10% to 16.5 cents per share. The new quarterly payment will be made on Apr. 29 to shareholders of record as of Apr. 15.
Cigarette maker Lorillard Inc. (NYSE: LO), the nation’s third largest manufacturer, lit up a 16% increase in its quarterly dividend to $1.30 per share from $1.125 per share. The new payout will be made on March 11 to shareholders of record as of March 1. The increase marks the second such move by the tobacco seller in the past six months, and the third dividend increase since Lorillard became an independent publicly traded company in June 2008.
Metal processor Reliance Steel (NYSE: RS) forged a 20% increase in its dividend, moving the quarterly payout up to 12 cents per share from the previous 10 cents. The company also reported strong fourth-quarter profit that easily beat Wall Street estimates. The new dividend is payable on March 25 to shareholders of record as of March 4. Increasing dividends is nothing new for this steel firm, as the company has upped its dividend 16 times since its 1994 IPO.
Cigarette maker Reynolds American (NYSE: RAI), which makes such popular brands as Camel, Kool, Winston and Salem, unwrapped an increased dividend of 8%. The new quarterly payout of 53 cents per share will be payable Apr. 1 to shareholders of record on March 10.
Paint maker Sherwin-Williams Co. (NYSE: SHW) brushed on a shiny new coat of dividends, raising its quarterly payout to 36.5 cents per share from 36 cents. The new dividend will be paid on March 11 to shareholders of record on Feb. 25. Last month, Sherwin-Williams touched up its fiscal performance with better-than-expected fourth-quarter profit due to a combination of strong sales and higher paint prices.
Tool maker Stanley Black & Decker, Inc. (NYSE: SWK) ratcheted up its quarterly payout several months ahead of its regularly scheduled dividend announcement. The new dividend of 41 cents a share is 21% higher than the current payout. The new dividend will be made March 22 to shareholders of record March 2. Incredibly, Stanley Black & Decker has tooled-up its dividend for 44 straight years.
Natural gas producer Williams Companies Inc. (NYSE: WMB) said it was spinning off its exploration and production arm into a separate publicly traded company. The company’s shares surged on the news even it reported net income came that was flat in the fourth quarter. The company’s adjusted earnings did, however, exceed Wall Street expectations. Almost lost in the news was the company’s increased quarterly dividend of 60% to 20 cents per share to be paid in June. The company said it was targeting an additional 10% to 15% increase for the quarterly dividends it will pay beginning in June 2012.
At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.
