Dividend investing has become very popular during the down economy, and many investors are searching for companies making dividend increases.
Here are six companies that have announced dividend increases this week.
Aflac Inc (AFL)
Aflac Inc. (NYSE: AFL) shareholders have more to quack about: The insurer increased its quarterly dividend by 7.1%, to 30 cents from 28 cents in the preceding quarter. It’s payable Dec. 1 to shareholders as of Nov. 17.
It also announced that it intends to resume share repurchases. Those repurchases were halted in late 2008 as the financial crisis took hold. The insurance company said it may buy up to 3 million shares in 2010 and plans to buy an additional 6 million to 12 million shares next year.
Aflac, based in Columbus, Ga., saw net income jump to $581 million in the quarter ended June 30 from $314 million a year earlier. AFL has a P/E of 12.5 and a market cap of $22.8 billion. It insures more than 50 million people worldwide and has more than 70,000 licensed agents.
American Water Works Co (AWK)
American Water Works Co. (NYSE: AWK) increased its quarterly cash dividend by a penny, or 5%, to 22 cents per share, giving it a yield of 4.1%. It’s the second consecutive increase by the company since it went public in 2008.
AWK also reported operating revenues of $671.2 million, up 9.5% from the second quarter of 2009. Net income was $72.8 million, or 42 cents per share, up nearly 40% per basic common share from a year earlier, and up more than 31% per diluted share. AWK’s market cap is nearly $4 billion; its P/E is 18.3.
The 121-year-old company, based in Voorhees, N.J., is the largest investor-owned water and wastewater utility company in the United States, with more than 7,000 employees. AWK serves homes and businesses but also performs non-regulated contract operations for municipalities that own their utility systems.
Dover Corp. (DOV)
Diversified machinery company Dover Corp. (NYSE: DOV) just increased its dividend, for the 55th consecutive year. This time it’s by 1.5 cents, to 27.5 cents, or a hike of 6% — payable on Sept. 15 to shareholders of record Aug. 31.
Management has a good outlook as well. It sees revenue growth of 16% to 18% in fiscal 2010, most of which is organic. Acquisitions would bring 3 percentage points of that growth.
Dover had $738.8 million of cash and cash equivalents as of June 30, up from $690.3 million on March 31. Dover paid $97.3 million in dividends in the first half.
Revenues rose to $1.8 billion in the second quarter, up 29% from the second quarter of 2009. Diluted earnings form continuing operations were 91 cents per share, up 69% from a year earlier. Plus, DOV raises its guidance for the full year to $3.05 to $3.25 from continuing operations.
DOV, which has a P/E of 17.3 and a market cap of more than $8.5 billion, describes itself as a global portfolio of manufacturing companies that provide components and equipment, specialty systems and support services in industrial products, engineered systems fluid management and electronic technologies markets.
Apollo Commercial Real Estate Finance, Inc. (ARI)
Real estate investment trust (REIT)
Apollo (NYSE: ARI) announced Wednesday that it has increased its quarterly dividend by 14%, to $0.40. This increase marks an annualized dividend yield around 9.6%.
This New York City based company is externally managed and advised by ACREFI Management, LLC, and only started paying a dividend in 2010. However, shareholders are being handsomely rewarded with the near 10% yield.
Connecticut Water Service, Inc. (CTWS)
Connecticut Water Service Inc. (NASDAQ: CTWS) supplies water to over 300,000 people in 54 towns in Connecticut. The company announced a 2 cent dividend increase today, marking an annual yield of 4.3%.
CTWS has outperformed earnings estimates three of the last four quarters, and analysts are projecting $0.52 this quarter. Additionally, this water company has paid a dividend to its shareholders since 1956.
Omnicare, Inc. (OCR)
Pharmaceutical service company Omnicare Inc. (NYSE: OCR) provides pharmacy and ancillary services to long-term health care institutions. Omnicare also provides specialty pharmaceutical products and support services to its clients.
The pharmaceutical company announced today that it will raise its dividend from 2.25 cents per share to 3.25 cents, an increase of 44.4%. This dividend will be paid on Sept. 15, to stockholders of record on Aug. 31.
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