With earnings season just getting started, it has been quiet on the quarterly dividend front. Many blue-chip dividend stocks have yet to post third-quarter earnings. If companies plan to boost dividends, they’ll announce them when EPS and revenue numbers are released.
There is good news for investors in Reynolds American (NYSE: RAI), as the second-largest tobacco company in the U.S. — behind Altria Group (NYSE: MO) — announced a nearly 9% dividend yield boost and a 2-for-1 stock split. There were also a few other dividend increase from small-cap picks.
Here are the dividend details:
Reynolds American Dividend Increase and Stock Split
Today, Reynolds American (NYSE: RAI) approved a 2-for-1 stock split and an 8.9% increase in its quarterly dividend, giving stock a plump new dividend yield of 6.4%. The annualized dividend was increased from $3.60 to $3.92 on a pre-split basis. Post-split, the increase equates to a jump from $1.80 to $1.96 on an annualized basis.
When the stock splits Nov. 15, shareholders of record will receive one share for each RAI share they hold and the share price will be cut in half.
It’s worth noting that stocks often see a post-split bounce simply by virtue of a lowered stock price. Sometimes these bounces can be dramatic. Take the case of Baidu.com (NYSE: BIDU), which split 10-for-1 in May. Baidu shares closed at $714.17 on May 11. The next day’s close, post-split, was $78.21, on little or no news. The shares jumped the equivalent of 9.5%.
In other news, Reynolds American said Susan Ivey, longtime chairman and CEO, plans to retire next year.
Goodrich Dividend Increase
Goodrich (NYSE: GR) is increasing its quarterly dividend 7% from 27 to 29 cents per share, giving the stock a yield of about 1.5%. While Goodrich may not have a mammoth payday, the aerospace and defense blue-chip stock has been very consistent in its payouts with a history of dividends back to 1939.
Goodrich’s success is partly due to its role as a supplier to the Boeing (NYSE: BA) 787 Dreamliner airplane. Boeing is expected to start deliveries of the 787 in February. Goodrich has supplied a number of parts and systems for the mammoth plane, including an innovative electric braking system. No small task, when the total weight of these planes can push 500,000 pounds!
The new Goodrich dividend is payable Dec. 30 to shareholders of record as of Dec. 1.
Banco Latinoamericano Dividend Increase
Emerging-market investors may not be known for seeking yield, but it’s worth noting that Banco Latinoamericano de Comercio Exterior (NYSE: BLX) of Panama reported a quarterly dividend increase of 13% this week, boosting it from 15 cents to 17 cents. That gives Banco Latinoamericano a yield of 4.4%.
Though the dividend boost is nice, it came with a mixed earnings report for BLX. The financial company posted a drop in net income for the third quarter, though the 41 cents per share topped estimates of 37 cents. The stock sold off Friday as a result, though it is up about 9% on the year.
The BLX dividend is payable Nov. 1 to shareholders of record Oct. 22.
Matthews International Dividend Increase
Matthews International (NASDAQ: MATW), a Pittsburgh company that trades in caskets, cremation urns and related merchandise, said it will boost its quarterly payday by 14%.
The Matthews dividend increase from 7 cents a share to 8 cents a share gives the company a new dividend yield of about 0.8%. The dividend is payable Nov. 8 to shareholders of record Oct. 25.
While it’s safe to say that Matthews is in a recession-proof sector, the stock hasn’t fared well at all lately. MATW is down 7% in the last 12 months while the broader market has added about 10%.
A. Schulman Dividend Increase
In obscure small-cap news, A. Schulman (NASDAQ: SHLM) raised its quarterly cash dividend by 3%, or half a cent, from 15 cents to 15.5 cents per share. That gives this small-cap chemicals stock a small increase in yield to about 2.9%.The Schulman dividend is payable on Nov. 1 to shareholders of record Oct. 25. SHLM stock has pretty much tracked the market in 2010, up about 4% while the Dow is up about 5%.
Jeff Reeves is editor of InvestorPlace.com. As of this writing, he did not own a position in any of the stocks named here. Follow Jeff on Twitter at @JeffReevesIP.
