The past couple of weeks haven’t been plentiful in terms of the number of companies increasing dividends, but the lack of volume doesn’t mean there’s been a paucity of noise in the dividend stock space. Last week, we saw several very big-name companies boost payouts, and leading the pack was industrial giant Caterpillar (NYSE: CAT).
The heavy equipment maker dug deep into its fiscal dirt, unearthing two more pennies per share. The new dividend of 46 cents is payable on Aug. 20 to shareholders of record as of July 20. Perhaps even more important than the dividend increase for the health of the industrial sector at large was the statement accompanying the Dow components announcement. That’s because Caterpillar also reaffirmed its profit outlook for the year.
The company said it continues to expect net income between $6.25 and $6.75 per share on revenue of $52 billion to $54 billion. Because Caterpillar is a bellwether for the global economy, the confirmation of its outlook is a much-needed drink of good news in an economic milieu thirsty for positivity.
Another bellwether of the economy, albeit in the consumer segment, is cheap-chic retailer Target (NYSE: TGT). The company is the second largest U.S. retailer behind behemoth Wal-Mart Stores (NYSE: WMT), and last week it raised its quarterly dividend by 20%. The new dividend of 30 cents per share is payable Sept. 10 to shareholders of record on Aug. 18.
Target has had a tough time of things of late, as they appear to be caught in the middle between deep discount dollar stores and more upscale department stores such as Macy’s (NYSE: M). The company’s shares have suffered the wrath of investors too, falling over 22% year to date. Shareholders may be getting a bigger dividend, but the stock price remains way off target.
The final high-profile corporate name increasing its payout last week was FedEx (NYSE: FDX). The transportation services firm delivered shareholders an 8% increase in its quarterly dividend, upping the payout to 13 cents per share. The new dividend will be paid on July 1 to shareholders of record as of June 17. Yet another bellwether of economic activity, FedEx also gave an encouraging prognosis. The company said it was expecting an increase in freight demand in the second half of 2011 despite higher energy costs.
Diversified energy company National Fuel Gas (NYSE: NFG) fired up a near 3% dividend increase last week, fueling up its quarterly payout to 35.5 cents per share. The stable energy concern has increased its annual dividend payout for 41 consecutive years.
Medical device maker C.R. Bard Inc. (NYSE: BCR) injected shareholders with a dividend shot last week, increasing the quarterly payout dose by a penny a share to 19 cents. The new dividend is payable Aug. 5 to shareholders of record as of July 25.
At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.
