It appeared stocks had shed their June gloom, but a dismal jobs number hit stocks hard Friday. It’s hard to say whether the summer rally will continue from here or fizzle out, but dividend investors can take comfort in the income they’re pulling in. And several high-profile companies recently made the pot a little sweeter for shareholders by raising dividends.
Atop the list of payout performers last week was mega-cap food maker General Mills (NYSE: GIS). The company, which is famous for such iconic brands as Cheerios, Betty Crocker and Pillsbury, baked a 9% increase in its quarterly dividend to 30.5 cents per share. The new dividend porridge is payable Aug. 1, to shareholders of record as of July 11.
The General Mills dividend boost came alongside a fourth-quarter profit that rose 51%, as higher prices boosted the company’s top line. But the news was bittersweet for General Mills, as the company said that price hikes would likely not be enough to offset higher food prices and rising energy costs. As a result, the company issued an outlook that left investors with a bad taste in their mouth.
For shareholders of Darden Restaurants (NYSE: DRI), the taste of their dividend was anything but flat. The company, which operates chain restaurants like Red Lobster and Olive Garden, cooked a scrumptious payout increase to shareholders of 34% to 43 cents per share. News of the dividend increase was largely overshadowed by a near 8% surge in the stock, after the company said it expected to open 80 to 90 restaurants in 2012. The company also reported fiscal fourth-quarter sales of about $2 billion, a 6.8% increase year over year.
Of course, dividend investors cannot live on Cheerios and lobsters alone, and thankfully there was a balanced diet of companies from various sectors that also increased dividends last week. Let’s take a quick look at them now.
Aircastle Ltd. (NYSE: AYR): The aircraft leasing operator’s dividend took flight, soaring to 12.5 cents per share from 10 cents. The new payout will be made on July 15, to shareholders of record as of July 7. In addition to its payout increase, Aircastle’s board also approved an increase in its share repurchase program by up to $30 million shares, for a total of up to $90 million.
Energy Transfer Equity L.P. (NYSE: ETE): The Texas-based natural gas transportation company turned up the heat on its second-quarter dividend by 11.6% to 62.5 cents per unit. The new distribution from the energy limited partnership will be paid on Aug. 19, to unit holders of record as of Aug. 5.
Harman International (NYSE: HAR): The audio company turned up the volume on its quarterly payout, blaring out a 200% increase to its dividend. The move comes just four months after the company reinstated its payout. The new quarterly dividend of 75 cents per share will go into effect in the new fiscal year, which starts July 1. The first quarterly payment to shareholders will be made in September. Harman had paid a quarterly dividend of 12.5 cents per share for more than a decade before halting its payout at the beginning of 2009.
MFA Mortgage Investments (NYSE: MFA): The real estate investment trust, which primarily deals in agency and non-agency residential mortgage-backed securities, lent shareholders a quarterly dividend hike of 25 cents per share. The new payout will be paid on July 29, to shareholders of record as of July 14.
Worthington Industries (NYSE: WOR): The diversified metal processing company, which focuses on steel processing and manufactured metal products, forged a 20% increase in its quarterly dividend to 12 cents per share. The new payout will be made on Sept. 29, to shareholders of record as of Sept. 15. This is the 175th consecutive quarter that Worthington has paid a dividend since it became a public company in 1968.
At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.
