It was another volatile week for the equity markets, and the Dow’s 419-point plunge Thursday punctuated the ongoing tumultuous trade. Fears over a European financial system crises, concerns about a slowing U.S. economy and a general lack of confidence on the part of investors has caused the Dow to plunge more than 12% during the past month. Yet despite the morose mood in the markets, corporate earnings continue to come in strong. Moreover, there’s also been a steady stream of companies increasing dividends.
This week we saw a handful of big companies increasing their payouts to shareholders, and although most of the companies on this list aren’t considered household names, they all are leaders in their respective fields. From insurance to electricity to software, this week’s payout performers show there are dividends to be collected from every segment of the market. They also show that no matter what’s happening in the wider market, companies continue making money and distributing that money to shareholders.
Here are five companies increasing dividends this week:
Cincinnati Financial
Property and casualty insurer Cincinnati Financial (NASDAQ:CINF) increased the premium it pays to shareholders, as the company raised its quarterly dividend by a quarter per share to 40.25 cents. The announcement was made Aug. 15, and the new dividend yield based on the closing value of the shares that day of $26.45 is 6.05%. The new dividend is payable on Oct. 17 to shareholders of record as of Sept. 21. The company’s latest payout increase marks its50th consecutive year of raising dividends. Cincinnati Financial said strong capital and continuous cash flow generation has helped it ensure the continuous payout flow.
Golar LNG
Midstream natural gas company Golar LNG (NASDAQ:GLNG) opened up the valves on its quarterly payout, increasing its dividend by 10% to 27.5 cents per share. The new dividend yield, based on the Aug. 18 closing price of $30.04, is 3.66%. The increased payout will be made Sept. 27 to shareholders of record on Sept. 13. The dividend increase came as Golar reported a narrower-than-expected second-quarter loss of $600,000. That’s much better than the $5.71 million the company lost in the same quarter a year ago. Golar said the increased payout was a reflection of the solid improvement in the LNG shipping market over the last nine months.
ITC Holdings
The nation’s largest independent electricity transmission company, ITC Holdings (NYSE:
ITC), increased the voltage on its quarterly dividend by 5.2% to 35.25 cents per share. The new yield, based on the Aug. 17 closing price of $73, is 1.93%. The bigger dividend is payable on Sept. 15 to shareholders of record on Sept. 1. The company’s increase marks the sixth consecutive year that it has raised the dividend on its common stock. ITC chairman, president and CEO Joseph L. Welch commented on the dividend, saying, “We continue to view our dividend as an important component of our total shareholder return proposition and remain focused on growing it in a manner that appropriately reflects our desire to efficiently fund our capital investment program and future growth prospects.” Translation: Look for more powered-up dividends from ITC in the years to come.
Nordson Corp.
Nordson Corp. (NASDAQ:NDSN), maker of equipment to apply adhesives and other materials to consumer and industrial products, stuck investors with a higher dividend, tacking on a 19% increase in its payout per share to 12.5 cents. The new dividend yield, based on the Aug. 16 closing price of $44.52, is 1.12%. The raised payout will be paid Sept. 13 to shareholders of record as of Aug. 30. Along with the dividend increase, Nordson said it saw record profits in its fiscal third quarter, which were led by strong sales in its adhesive dispensing systems business. Unfortunately, the results were a bit shy of Wall Street’s expectations. Nordson earned 82 cents per share for the three months ended July 31, while revenue increased 11.9% to $312.3 million. Analysts had been expecting 89 cents per share on revenue of $323.2 million.
Solera Holdings
Solera Holdings (NYSE:SLH), a software services provider to the automobile insurance claims processing industry, programmed an increase in its quarterly payout to shareholders of 33%. The new dividend of 10 cents per share is payable on Sept. 20 to shareholders of record at the close of business on Sept. 8. The new dividend yield, based on the Aug. 15 closing price of $58.02, is 0.69%. In a statement accompanying the payout announcement, Tony Aquila, founder, chairman and CEO of Solera Holdings, Inc., said, “This increase demonstrates our confidence in the strength and diversification of our global business which allows us to enhance total stockholder returns while maintaining our focus on our M&A and internal investment strategies.” We’ll find out how well Solera performed in its most recent quarter when it releases its earnings results Aug. 24 after the markets close.
At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.