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Notable Dividend Hikes: Parker-Hannifin, Northrop Grumman, Moody's, Coca-Cola Enterprises and Costco

April 27, 2011 | About:
Dynamic Dividend

Dynamic Dividend

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These are today's dividend hikes, according to The Dynamic Dividend: Parker-Hannifin Corporation (PH), Northrop Grumman (NOC), Moody's (MCO), Coca-Cola Enterprises (CCE), and Costco Wholesale Corporation (COST).

Parker-Hannifin Gives Shareholders Yet Another Raise

Parker-Hannifin Corporation (PH) increased its dividend once again today, this time by 16%. The company has not only raised its payout for 55 consecutive years (tied for the fifth-longest active streak among all publicly-traded companies), but also boosted its payout for five consecutive quarters.

The manufacturer of motion and control technologies and systems declared a quarterly dividend of $0.37 per share, a 16% increase over its last payout and a 42% improvement over the dividend paid during the same period last year. Parker Hannifin has now raised its dividend by a total of 48% since the beginning of last year.

The announcement coincided with today’s strong third quarter earnings release. Parker earned $1.68 per share on $3.24 billion in revenue during the quarter, while analysts were expecting a profit of just $1.55 per share and sales of just $3.07 billion. The company also raised its full-year earnings guidance to a range of $6.20 to $6.40 per share, while analysts are currently forecasting a profit of just $6.18 per share.

Despite the strong results, shares of PH are currently dragging along their intraday low of $94.12 (-4.44%), where they now feature a 1.57% dividend yield.

Northrop Grumman declared a quarterly dividend of $0.50 per share within today’s first quarter earnings release, increasing its payout by 6.4%. This marks the eighth consecutive year the defense company has given shareholders a raise.

Northrop Grumman Boosts Dividend for 8th Straight Year

As for its first quarter performance, the company earned $1.67 per share on $6.73 billion in revenue. Analysts were expecting a much smaller profit of $1.56 per share on slightly higher sales ($6.74 billion). The reported figures strip out discontinued operations, namely those generated by the shipbuilding subsidiary spun-off at the end of March.

Looking ahead, Northrop Grumman raised its full-year earnings guidance to a range of $6.50 to $6.70 per share and maintained its revenue forecast of $27.5 billion. Wall Street currently expects the company to earn $6.68 per share on sales of $27.7 billion.

Shares of NOC climbed to $63.37 (+1.41%) in early trading, where they now feature a 3.16% dividend yield.

Northrop Grumman has now raised its dividend every year dating back to 2004, boosting its payout by a total of 150% over that short period.

Moody’s Raises Dividend, Guidance Following Strong Q1

Moody’s Corporation (MCO) declared a quarterly dividend of $0.14 per share this morning, a 21.7% increase over the $0.115 paid last period. This is the second consecutive quarter the credit financial research company has given its shareholders a raise.

The announcement was made in tandem with today’s impressive first quarter earnings release. Moody’s reported earnings of $0.67 per share on $577.1 million in revenue, easily beating the consensus views for both profit ($0.54 per share) and sales ($521.5 million).

For the full year, Moody’s now expects to earn $2.22 to $2.32 per share. The new guidance range is completely above the average analyst forecast of $2.18 per share.

Shares of MCO popped to $37.02 (+3.09%) in pre-market trading, where they now feature a 1.51% dividend yield.

Moody’s has given shareholders a raise in seven of the last eight years, including twice already in 2011. The company’s March dividend was 9.5% better than its prior payout.

Coca-Cola Enterprises Accelerates Dividend Growth

Coca-Cola Enterprises (CCE) declared a quarterly dividend of $0.13 per share, an 8.3% improvement over the $0.12 paid each of the previous two quarters by the world’s third largest Coca-Cola bottler.

This dividend hike came quicker than expected, especially considering the company gave shareholders a 39% raise just two quarters ago. According to CEO John Brock, the move “accelerates an increase planned for later this year.”

Shares of CCE closed at $28.28 on Tuesday, where they now feature a 1.84% dividend yield.

Costco’s Biggest Dividend Hike Ever

Costco Wholesale Corporation (COST) declared a quarterly dividend of $0.24 per share today, a 17% increase over its previous four payouts. The membership warehouse operator also announced a big upgrade to its stock repurchase program.

The company’s board of directors approved up to $4 billion in share repurchases through 2015, replacing the existing program and its remaining balance of roughly $800 million.

Shares of COST closed at $79.78 (+1.42%) today, where they now carry a 1.20% dividend yield.

This is the largest raise ever given to Costco shareholders, which is saying something. The company has increased its payout every year since it began returning cash to shareholders in 2004, always by at least 10%.

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