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Notable Dividend News: AHC, TN, ALC, TMK, HLF, RBC

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Dynamic Dividend

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These are the dividend hikes featured by The Dynamic Dividend today: A. H. Belo (AHC), Trinity Industries (TRN), Assisted Living Concepts (ALC), Torchmark Corporation (TMK), Herbalife Ltd. (HLF), and Regal Beloit Corporation (RBC).

A.H. Belo Reinstates Quarterly Dividend

A. H. Belo (AHC) declared a quarterly dividend of $0.06 per share within today’s first quarter earnings release. This will be the first time the company has returned cash to shareholders since 2008. Shares of AHC closed at $8.26 today, where they now feature a 2.91% dividend yield.

The news and information company last paid a quarterly dividend in October 2008, the same year it was spun-off from Belo Corp. (BLC). (Belo Corp. just reinstated its dividend last week.)

Trinity Industries Boosts Dividend by 12.5%

Trinity Industries (TRN) declared a quarterly dividend of $0.09 per share today, a 12.5% improvement over the $0.08 paid each of the previous 12 quarters by the multi-industry company.

Shares of TRN closed at $35.08 today, where they now feature a 1.03% dividend yield.

This is the fifth time Trinity has increased its quarterly dividend since cutting it by two-thirds (from a peak of $0.12 per share down to $0.04) back in 2002.

Assisted Living Concepts Initiates Quarterly Dividend

Assisted Living Concepts (ALC) announced a two-for-one stock split and declared its first quarterly dividend today.

Investors will receive one additional share for each share held on the May 20 record date. Following the split, the company will begin paying a quarterly dividend of $0.10 per share. That’s the equivalent of a $0.20 payout using today’s share count.

Shares of ALC closed at $35.83 on Monday, where they now feature a shiny new 2.23% dividend yield.

Analysts currently expect Assisted Living Concepts to earn $2.00 per share in 2012, giving the company a very manageable 10% forward payout ratio to begin its dividend-paying era.

Torchmark Announces Stock Split, Dividend Hike

Torchmark Corporation (TMK) announced a 3-for-2 partial stock split today, which will occur in tandem with a 3.1% increase to its dividend.

Investors will receive one additional share for each TMK share held on the June 1 record date. (Cash will be paid in lieu of fractional shares.) Following the split, the company will pay a quarterly dividend of $0.11 per share (the equivalent of $0.165 on a pre-split basis), which works out to a 3.1% improvement over the $0.16 paid each of the previous three quarters by the insurance holding company.

Shares of TMK closed at $66.27 on Monday, where they now feature a 1.00% dividend yield.

Torchmark has improved its annual dividend total every year since 2006, boosting its payout by exactly 50% over that span.

Herbalife’s Stock Split Includes 60% Dividend Hike

Herbalife Ltd. (HLF) announced a 2-for-1 stock split within today’s impressive first quarter earnings release. The global nutrition company also declared a post-split payout of $0.20 per share, the equivalent of a 60% raise for shareholders.

Investors will receive one additional share for every share held on the May 10 record date. Following the split, Herbalife will pay a quarterly dividend of $0.20 per share. Adjusted for the new share count, that represents a 60% improvement over the $0.25 paid each of the previous three quarters by the company. (One share bringing in $0.25 per quarter magically turns into two shares bringing in $0.20 per quarter.)

As for its first quarter performance, Herbalife reported earnings of $1.43 per share on $795.1 million in revenue, easily beating the consensus estimates for both profit ($1.21 per share) and sales ($736.5 million). Looking ahead, the company now expects to earn $5.54 to $5.78 per share on 18-20% revenue growth in 2011. Both ranges completely kill the average analyst view, which currently calls for a profit of just $5.46 per share on $3.12 billion in sales (or 14% growth).

Unsurprisngly, shares of HLF have surged in extended action. The stock is currently trading at $95.97 (+6.34%), where it now features a 1.67% dividend yield.

Regal Beloit Raises Dividend Again

Regal Beloit Corporation (RBC) declared a quarterly dividend of $0.18 per share today, a 5.9% increase over the $0.17 paid each of the previous four quarters by the manufacturer of electrical and mechanical motion control components.

Regal Beloit is currently on pace to improve its annual dividend total for the seventh consecutive year. The company has now raised its payout by exactly 50% during the streak.

Shares of RBC opened today’s session trading at $76.21 (+0.55%), where they now feature a 0.94% dividend yield.

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Dynamic Dividend
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