Daily Dividend Report: LOW, PRGN, TAP, BG, TRH, SDRL, RY, CATO, AIN, VHI
Lowe’s Raises Dividend for 49th Consecutive Year
Lowe’s Companies announced a 27% increase to its quarterly dividend at today’s annual shareholders meeting. This is the biggest dividend hike since 2007 from the home improvement giant, which has now raised its payout for 49 consecutive years.
Shares of LOW are currently trading at $24.35, where they now feature a 2.30% dividend yield.
Lowe’s has increased its annual dividend total every year dating back to 1963, earning it Class B Dividend Dynamo status. Since 2003 alone, the company has improved its payout by more than 1000%.
Paragon Shipping Throws Dividend Overboard
Paragon Shipping Inc. (PRGN) reported first quarter results that beat expectations — as long as you weren’t expecting the company to keep paying its quarterly dividend.
The Greek drybulk shipper announced the suspension of its dividend in order to take advantage of opportunities to grow its fleet. Paragon had paid a quarterly dividend of $0.05 per share each of the previous nine quarters, which produced a 7.17% dividend yield as of Thursday’s closing price ($2.79).
The announcement came within the company’s first quarter earning release, in which it reported adjusted earnings of $0.12 per share on $29.6 million in total revenue — easily beating the consensus estimates for both profit ($0.05 per share) and revenue ($24.9 million).
Shares of PRGN surged as high as $2.95 (+5.73%) immediately following the release in extended trading, where they no longer carry a dividend yield.
Molson Coors Raises Dividend for Fourth Straight Year
Molson Coors Brewing Company (TAP) declared a quarterly dividend of $0.32 per share after today’s closing bell, which is a 14% improvement over its previous four payouts. The global brewer has now raised its dividend for four consecutive years.
Shares of TAP closed Thursday’s session trading at $45.93, where they now carry a 2.85% dividend yield.
Molson Coors has raised its dividend every May since 2008, increasing its quarterly rate by $0.04 each time and doubling its payout in the process.
Bunge Lifts Dividend Again
Bunge Limited (BG) declared a quarterly dividend of $0.25 per share after today’s closing bell, pushing its payout 8.7% higher. The global agribusiness and food company is currently on pace to pay an improved dividend total for the ninth consecutive year.
Shares of BG closed Thursday’s session trading at $72.76, where they now feature a 1.37% dividend yield.
Bunge has raised its annual dividend total every year since initiating its quarterly payout in 2002, increasing its payout by an average of 11% over that span. Given its strong financial position and efficient nature, I think the company is an up-and-coming dividend growth superstar — one of those stocks that seems like a boring purchase at all times but you perpetually wish you’d bought ten years earlier. Think: Archer Daniels Midland (ADM) Lite.
Bunge closed out 2010 ranked 89th on my list of The 100 Best Values Among Dividend Paying Stocks and has been a mainstay on my Dividend Stock Value Rankings since February. Shares are up 11% so far this year.
Transatlantic Ups Dividend for 21st Consecutive Year
Transatlantic Holdings, Inc. (TRH) declared a quarterly dividend of $0.22 per share after today’s closing bell, a 4.8% improvement over the $0.21 paid each of the previous four quarters by the reinsurance holding company.
Shares of TRH closed Thursday’s session trading at $45.68, where they now yield 1.93%.
Transatlantic has raised its dividend every year since it went public in 1990, earning it Class D Dividend Dynamo status. This is the third consecutive year the company has boosted its quarterly payout by a penny, and today’s dividend hike is the smallest (percentage-wise) in Transatlantic’s history.
Seadrill Raises Dividend for Sixth Straight Quarter
Seadrill Limited (SDRL) declared a quarterly dividend of $0.75 per share within this morning’s mixed first quarter earnings release, which is an 11% increase over itsprevious payout, and a 25% improvement over the dividend paid during the same period last year.
The offshore drilling contractor has now given its shareholders a raise for six consecutive quarters, boosting its payout by a total of 50% during the streak. The company also paid an extraordinary dividend of $0.20 per share earlier this year.
As for its first quarter results, they were essentially in-line with estimates. Seadrill posted a first quarter operating profit of $430 million on $1.11 billion in revenue, falling short of the consensus earnings view ($432 million) while topping the average revenue estimate ($1.04 billion).
Shares of SDRL closed Thursday’s session trading at $35.62, where they now yield 8.42%.
SeaDrill closed out 2010 ranked 15th on my list of The 100 Best Values Among Dividend-Paying Stocks, and currently sits at #21 on my monthly Value Rankings.
RBC’s Dividend Growth is Back
Royal Bank of Canada (RY) declared a quarterly dividend of C$0.54 per share this morning, an 8% improvement over its previous payouts. The move ends an uncharacteristically dormant period for the Canadian financial firm’s dividend, which hadn’t been raised since 2007.
Shares of RY closed Thursday’s session trading at $60.29, where the new dividend rate (and current exchange rate) produces a 3.67% dividend yield.
Prior to the recent flatness, RBC had increased its annual dividend total for twelve consecutive years. The bank gave its shareholders multiple raises most years during the streak, and achieved double-digit year-over-year dividend growth ten times.
Cato Regains Dividend Growth Momentum
The Cato Corporation (CATO) declared a quarterly dividend of $0.23 per share after today’s closing bell, which is a 24% improvement over the $0.185 paid each of the previous four quarters by the operator of women’s fashion specialty stores.
This is the second consecutive year Cato has given its shareholders a double-digit raise, following the 12% dividend hike announced last May. The pair of dividend increases have come after the company uncharacteristically held its payout flat for 12 straight quarters. Prior to that dormancy, Cato had raised its annual dividend total for eleven consecutive years.
Shares of CATO closed Thursday’s session trading at $26.45, where they now feature a 3.48% dividend yield.
Albany’s First Dividend Hike in Three Years
Albany International Corp. (AIN) declared a quarterly dividend of $0.13 per share today, an 8.3% improvement over the $0.12 paid each of the previous 12 quarters by the textiles and materials company.
Shares of AIN are currently trading at $26.91, where they now feature a 1.93% dividend yield.
Prior to the recent flat period, Albany had raised its annual dividend total for eight consecutive years.
Valhi’s First Dividend Hike in Six Years
Valhi, Inc. (VHI) announced a 25% increase to its quarterly dividend today. This marks the first time the diversified holding company has given its shareholders a raise since early 2005.
Shares of VHI closed at $43.35 on Thursday, where they now yield 1.15%.
Valhi, which operates through its subsidiaries in industries ranging from furniture components to waste management, has only raised its dividend twice in the last 15 years.
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- High Yield Dividend Stocks in Gurus' Portfolio
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- Top dividend stocks of George Soros