The 2011 dividend increases just keep rolling in, and after last week’s stellar lineup of companies upping payouts, this week’s batch may actually have the prior bunch beat. Ironically, the real dividend buzz last week was generated by mere potential dividend increases from the banking sector.
In a note to clients, investment firm RBC Capital Markets said that some of the biggest financial institutions — firms such as Bank of New York Mellon (NYSE: BK), JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) — could get early approval from the Federal Reserve to increase their dividends. The RBC report said the government could allow banks to lift their payouts as soon as two weeks from now. Needless to say, this column will be following all of these developments as they unfold.
As for those companies that actually did raise dividends last week, the all-star lineup includes manufacturing giants, high-profile tech firms and a fashion icon. The following is a list of seven widely held companies increasing dividends last week.
3M (NYSE: MMM). The manufacturing giant and Dow component raised its quarterly dividend, increasing its payout to shareholders by 5% to 55 cents per share. The company also said it was instituting a $7 billion share repurchase program. The new payout will be made to on March 12 to shareholders of record on Feb. 18. Incredibly, the latest dividend increase marked the 53rd consecutive year the company has lifted its payout.
Activision Blizzard (NASDAQ: ATVI). The videogame maker said it would increase its quarterly dividend by 10% to 16.5 cents per share per. The new payment will be made on May 11 to shareholders of record as of March 16. The announcement came along the release of better-than-expected Q4 revenue and earnings. The company also set a new $1.5 billion share repurchase program. But the news wasn’t all rosy for the videogame maker. Activision said it expected current quarter and full-year earnings to come in below estimates. It also said it would stop development of its once über-popular Guitar Hero titles.
Diebold (NYSE: DBD). The makers of ATMs, security systems and a host of other self-service devices raised its first-quarter dividend to 28 cents per share, payable on March 7 to shareholders of record on Feb. 21. The new dividend represents a 3.7% increase over the current payout. Diebold actually outpaced 3M in terms of dividend consistency. It was the company’s 58th consecutive annual increase.
Honeywell (NYSE: HON). The diversified tech giant lifted its quarterly dividend to 33.25 cents per share, a near 10% increase over the current payout. The new dividend is payable on March 10 to shareowners of record on Feb. 18. In January, the company reported better-than-expected Q4 earnings, and now has decided to follow up those numbers with a bigger dividend.
L3 Communications (NYSE: LLL). The aerospace and electronics systems maker said it would raise its quarterly dividend by 12.5% to 45 cents per share from 40 cents. The new quarterly payout will be made on March 15 to shareholders of record on March 1. The company recently reported strong earnings while also boosting its full-year profit outlook. That was good news for the defense sector at large, as many of the biggest companies in the space are staring at possible defense cuts in the soon-to-be-proposed 2011 federal budget.
Occidental Petroleum (NYSE: OXY). The oil and gas exploration firm drilled down deep into its wallet and unearthed a 21% increase in its dividend. The new yearly payout will be $1.84 per share from the current $1.52 per share. The new 46 cent-per-share quarterly dividend will be payable April 15 to shareholders of record March 10. As oil prices continue to climb, look for more dividend increases from other oil and gas sector firms.
Polo Ralph Lauren (NYSE: RL). The iconic American fashion firm donned an upgraded dividend suit last week, as a new payout was announced along with much better-than-expected fiscal Q3 earnings. The company’s new quarterly dividend will be 20 cents per share, double the current dividend of just 10 cents per share. The newly tailored payout will be paid on Apr. 15 to shareholders of record as of Apr. 1.
At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.
