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Dividends of LyondellBasell, Interactive Brokers, Northwest Bancshares and Johnson Controls

April 25, 2011 | About:
Dynamic Dividend

Dynamic Dividend

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These are today's dividend updates by The Dynamic Dividend on LyondellBasell (LYB), Interactive Brokers Group, Inc. (IBKR), Northwest Bancshares, Inc. (NWBI) and Johnson Controls, Inc. (JCI)

LyondellBasell Proposes First Post-Bankruptcy Dividend

LyondellBasell (LYB) announced the proposal of a $0.10 per share dividend today, which would be the specialty chemical company’s first since emerging from Chapter 11 bankruptcy protection last April. The payout still requires approval at next week’s annual shareholder meeting. If approved, the dividend will be payable on May 26 and the stock will trade ex-dividend on May 3.

Shares of LYB closed last week trading at $42.73, where they would feature a 0.94% dividend yield if the new payout is approved.

In calculating the potential yield, I’m assuming this is a quarterly dividend. To be fair, today’s press release doesn’t specify the frequency LyondellBasell intends to return cash to shareholders, but prior to bankruptcy the company paid in quarterly installments.

Interactive Brokers Initiates Quarterly Dividend

Interactive Brokers Group, Inc. (IBKR) declared a quarterly dividend of $0.10 per share within its impressive first quarter earnings release, the electronic market maker’s first.

Interactive Brokers paid a special dividend of $1.79 per share at the end of last year, but had never established a regular payout until now. Analysts currently expect the company to earn $1.13 per share in 2012, giving it a very manageable 35% forward payout ratio to start its dividend-paying era.

As for its first quarter performance, Interactive Brokers posted earnings of $0.41 per share on $368 million in revenue, easily beating the consensus estimate for both profit ($0.27 per share) and sales ($335 million).

Shares of IBKR are currently trading at $16.79 (+1.88%), where they feature a shiny new 2.38% dividend yield.

Northwest Bancshares Boosts Dividend by 10%

Northwest Bancshares, Inc. (NWBI) declared a quarterly dividend of $0.11 per share within today’s first quarter earnings release, a 10% improvement over the $0.10 per share paid previously by the bank holding company.

This is the first pure dividend hike from the parent company of Northwest Savings Bank since 2007, although a stock split at the end of 2009 did slightly improve the company’s per-share payout.

As for its first quarter performance, Northwest Bancshares posted mixed result. The company earned $0.16 per share on $67.0 million in net interest income, edging the consensus profit view ($0.15 per share) while falling short of the average net interest income estimate ($71.1 million).

Shares of NWBI are currently trading at 12.36 (+0.16%), where they now feature a 3.56% dividend yield

Johnson Controls Beats Estimates, Guidance Disappoints

Johnson Controls, Inc. (JCI) reported second quarter results that beat Wall Street’s estimates this morning. But the automotive interior company said it expects third quarter earnings to be negatively impacted by Japanese production disruptions, sending shares lower.

Johnson Controls posted adjusted earnings of $0.56 per share on $10.14 billion in revenue during the first quarter, edging the consensus profit view ($0.55 per share) while easily topping the average sales estimate ($9.37 billion).

As a result of production disruptions in Japan, the company said it now expects to earn just $0.51 to $0.53 per share during its third quarter, while analysts are currently forecasting a much-higher profit of $0.67 per share.

Shares of are currently dragging along their intraday low of $38.82 (-4.69%), where they carry a 1.65% dividend yield. Johnson Controls raised its dividend by 23% last November.

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