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Notable Dividend News: RCII, KRO, CY, CP, UG

May 13, 2011 | About:
Dynamic Dividend

Dynamic Dividend

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These are today's notable dividend hikes featured by The Dynamic Dividend: Rent-A-Center, Inc. (RCII), Kronos Worldwide, Inc. (KRO), Cypress Semiconductor Corporation (CY), Canadian Pacific Railway Limited (CP), and United-Guardian, Inc. (UG).

Rent-A-Center Gives Shareholders a Giant Raise

.Rent-A-Center, Inc. (RCII) declared a quarterly dividend of $0.16 per share today, a big 167% leap from the $0.06 paid by the rent-to-own powerhouse each of the four quarters since initiating its payout. Shares of RCII closed Thursday’s session trading at $32.07, where they now feature a 2.00% dividend yield.

After just one year as a dividend-paying company, Rent-A-Center’s yield is now more than 10 times that of rival Aaron’s (AAN), which pays a paltry 0.19% despite raising its dividend for five consecutive years.

Kronos Raises Dividend by 20%

Kronos Worldwide, Inc. (KRO) declared a quarterly dividend of $0.15 per share today, which looks like a downgrade from the $0.25 paid previously by the company. But timing is everything.

The producer of titanium dioxide products is in the midst of a two-for-one stock split, with a fresh batch of shares being distributed to investors later this month. On a split-adjusted basis, previous payouts were actually only $0.125 per share. So the new rate is a 20% improvement.

Shares of KRO closed Thursday’s session trading at $54.77, where they now feature a 2.19% dividend yield.

Cypress Semiconductor Initiates Quarterly Dividend

Cypress Semiconductor Corporation (CY) declared a quarterly dividend of $0.09 per share after today’s closing bell. It will be the first time the chipmaker has ever returned cash to shareholders.

Analysts currently expect CY to earn $1.49 in 2012, which gives the company a 24% forward payout ratio to begin its dividend-paying era.

Shares of CY closed Thursday’s session trading at $21.98, where they now feature a shiny new 1.64% dividend yield.

Canadian Pacific Delivers an 11% Dividend Hike

Canadian Pacific Railway Limited (CP) has announced an 11% increase to its quarterly dividend, which will push its payout up from C$0.27 to C$0.30 per share.

This is the second consecutive year the North American rail operator has given its shareholders a raise, following the 21% dividend hike announced last May. Since 2001, Canadian Pacific has raised its dividend seven times, tallying 135% dividend growth a little less than a decade.

Shares of CP are currently trading at $62.87, where the new dividend rate (and current exchange rate) produces a 1.97% dividend yield.

United-Guardian Boosts First Half Dividend by 20%

United-Guardian, Inc. (UG) declared a semiannual dividend of $0.36 per share today, representing a 9.1% increase over its year-end 2010 payout and a 20% improvement over the dividend paid during the same period last year.

Shares of UG are currently trading at $14.94, where they feature a 4.62% dividend yield. (Yield is calculated using the last two semiannual dividends declared, since the company’s first- and second-half payouts are two separate animals.)

The manufacturer of health care and pharmaceutical products is currently on pace to improve its annual dividend total for the seventh time in the last nine years, and third consecutive year. United-Guardian has now increased its payout by 590% since 2002.

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