Notable Dividend Hikes: BBOX DE, MDT, SFL, THFF

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May 24, 2011
These are the dividend hikes featured by The Dynamic Dividend today: Black Box Corporation (BBOX, Financial), Deere & Company (DE, Financial), Medtronic, Inc. (MDT, Financial), Ship Finance International Limited (SFL, Financial),

First Financial Corporation (THFF, Financial).

Black Box Raises Dividend by 17%



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Black Box Corporation (BBOX) declared a quarterly dividend of $0.07 per share this morning, pushing its payout higher by 16.7%. This is the first dividend hike from the technical services company since 2004, and only its second since initiating its quarterly dividend in 2002.

Shares of BBOX opened Tuesday’s session trading at $32.17, where they now carry a 0.87% dividend yield.

Deere’s Ninth Dividend Hike in Seven Years



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Deere & Company (DE) declared a quarterly dividend of $0.41 per share this morning, a 17% increase over its previous payout and a 37% improvement over the dividend it paid during the same period last year. This is the third time the company has raised its payout since the beginning of 2010, and its ninth dividend hike since early 2004.

Shares of DE closed Monday’s session trading at $83.06, where they now feature a 1.97% dividend yield.

Deere has increased its annual dividend total every year dating back to 2004, and the momentum is building. The company is currently on pace to deliver its best year-over-year dividend growth (28.5%) in more than 20 years.

Medtronic’s Earnings Disappoint Ahead of Dividend Hike



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Medtronic, Inc. (MDT) reported adjusted fourth quarter earnings of $0.90 per share on $4.30 billion in revenue this morning, falling short of the average profit estimate ($0.93 per share) while edging the consensus sales view ($4.29 billion). Shares dropped in pre-market trading.

Adjusted net earnings fell 2% year-over-year, despite 2% sales growth.

Medtronic has raised its dividend every year dating back to 1978, qualifying it as a Class C Dividend Dynamo, and has pushed its payout higher by an incredible 463% since the beginning of 2000 alone. The medical technology company traditionally raises its dividend each June, and I don’t expect this year to be any different — although it will be interesting to see if it starts a fresh streak of double-digit dividend growth. In the 2010 calendar year, Medtronic’s year-over-year dividend growth dipped below 10% (albeit just to 9.41%) for the first time in more than two decades.

Shares of MDT fell to $40.48 (-1.89%) in pre-market trading, where they feature a 2.22% dividend yield.

Ship Finance Ups Dividend for 5th Straight Quarter



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Ship Finance International Limited (SFL) declared a quarterly dividend of $0.39 per share within this morning’s first quarter earnings release, which is a 2.7% increase over its previous payout and an 18.2% improvement over the dividend paid during the same period last year.

This is the fifth consecutive quarter Ship Finance has given its shareholders a raise.

Shares of SFL opened Monday’s session trading at $20.00, where they now carry a 7.80% dividend yield.

Ship Finance slashed its payout in half (from $0.60 down to $0.30 per share) at the beginning of 2009. After a five-quarter flat period, the company has strung together five consecutive quarters of dividend growth, recovering 30% of the reduction in the process.

First Financial Raises Dividend for 22nd Straight Year



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First Financial Corporation (THFF) has declared a semiannual dividend of $0.47 per share, bumping its payout by a penny. The financial holding company is now in position to pay an improved dividend total for the 22nd consecutive year.

Shares of THFF closed Friday’s session trading at $30.76, where they now feature a 3.06% dividend yield.

First Financial has increased its annual dividend total every year dating back to 1990, earning it Class D Dividend Dynamo status. The company’s dividend growth has slowed during the second half of its streak, however. From the start of 1990 through the end of 2000, First Financial raised its payout by a total of 419% — but has pushed it higher by just 68% since.