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Notable Dividend News: PPS, HOMB, XRTX, OHI

August 01, 2011 | About:
These are today's notable dividend news from Dynamic Dividend. Related companies are: Post Properties (PPS), Home BancShares (HOMB), Xyratex Ltd (XRTX) and Omega Healthcare Investors (OHI).

Post Properties’ First Dividend Hike in 10 Years

Post Properties (PPS) declared a quarterly dividend of $0.22 per share this evening, which is a 10% increase over its previous eleven payouts. This is the first dividend hike in ten years from the developer of upscale multifamily communities, which had massively reduced its dividend twice in the last decade.

Post raised its quarterly dividend to a peak of $0.78 per share at the start of 2001, only to hack it down by 42% (to $0.45 per share) two years later. The real estate investment trust cut its payout by an additional 56% (down to $0.20 per share) at the start of 2009, which is where it stood until today’s announcement.

Shares of PPS closed Monday’s session trading at $42.22, where they now feature a 2.08% dividend yield. The stock is up more than 16% so far this year.

Home BancShares Hikes Dividend by 48%

Home BancShares (HOMB) declared a quarterly dividend of $0.08 per share this evening, which is a 48% improvement over the $0.054 paid each of the previous ten quarters by the Arkansas-based bank holding company.

The parent company of Centennial Bank began returning cash to its shareholders in 2006, and its quarterly payout has fluxuated between $0.2315 and $0.0591 per share during its dividend-paying tenure, so the rate announced today is a new all-time high. Home BancShares completed its participation in the TARP program last month, finally freeing the company to adjust its payout.

Shares of HOMB closed Monday’s session trading at $23.54, where they now carry a 1.36% dividend yield.

Xyratex Initiates Quarterly Dividend; Yields 2%

Xyratex Ltd (XRTX) declared a quarterly dividend of $0.05 per share after today’s closing bell, marking the first time the UK-based data storage company has elected to return cash to its shareholders.

Shares of XRTX closed Monday’s session trading at $9.44, where they carry a shiny new 2.12% dividend yield. The stock is down more than 42% so far this year.

Analysts currently expect Xyratex to earn $1.44 per share in 2012, giving the company a very manageable 13.9% payout ratio to begin its dividend-paying era.

Omega Crashes to 20-Month Low, Yield Rockets to 9%

The “grand compromise” over the weekend was not kind to healthcare-related stocks. One name that took a particularly nasty hit when trading started Monday morning was Omega Healthcare Investors (OHI), the real estate investment trust that owns and holds mortgages on long-term care facilities. The stock was crushed today, falling as low as $16.97 (13.59%) at one point — its lowest intraday level since November 11, 2009. It had to climb steadily all afternoon just to close the day trading at $17.81 (-9.32%), where it carries an 8.98% dividend yield. As you can see from the chart below, the stock’s yield has rarely flirted with the 9% level:



The company has given its shareholders an absurd 19 raises since reinstating its payout in late 2003 (a period wholly covered by this chart), and other than a brief six month period when the world was engulfed in economic panic, Omega’s yield has come nowhere near 9% until today.

Will this end up being another short-lived opportunity to buy Omega and lock in an elevated yield, or is the Elite REIT’s steadily-rising dividend actually at risk?

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Dynamic Dividend
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