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Busy Week for Dividend Increases

As more and more large cap companies unveiled their results, there were many dividend announcements as well. Other large cap companies such as Intel, Microsoft, IBM and Google released quarterly results and provided guidance for future quarters. Other companies such as Bank of America set a negative tone with their most recent dividend cut, while others like General Electric provided reassurance that their dividend and triple A rating are safe and will be maintained.

Despite the negative news several notable dividend increases occurred over the past week. This has been the most dividend increases I have seen since I began reviewing weekly changes in dividend policies for US publicly traded entities in 2008.

Polaris Industries Inc. (PII) announced that its Board has approved a 3% increase in its quarterly dividend to $0.39 per common share. Polaris Industries Inc. is a dividend achiever, which has consistently increased its dividends for 14 years. The stock currently yields 6.40%.

Pall Corporation (PLL) announced that its Board has approved an 11.50% increase in its quarterly dividend to $0.145 per common share. Pall Corporationis has consistently increased its dividends since 2005. The stock currently yields 2.00%.

Canadian National Railway (CNI) announced that its Board has approved a 10% increase in its quarterly dividend. Canadian National Railway is an international dividend achiever, which has consistently increased its dividends for 13 consecutive years. The stock currently yields 2.30%. The company has managed to double its dividends every four to five years since 1996.

Westamerica Bancorporation (WABC) announced that its Board has approved an increase in its quarterly dividends from $0.35 to $0.36 per common share. Westamerica Bancorporation is a dividend achiever, which has consistently increased its dividends for 17 years. The stock currently yields 3.10%.

ALLETE, Inc. (ALE), which engages in the generation, transmission, distribution, and marketing of electrical power, announced that its Board has approved a 2.3% increase in its quarterly dividends to $0.44 per common share. The stock currently yields 5.70%.

Natural Resource Partners L.P. (NRP), which engages in the ownership and management of coal properties, announced that its Board has approved an increase in its quarterly dividends to $0.535 per common share. Natural Resource Partners L.P. has consistently increased its dividends almost every quarter since going public in 2003. The units currently yield 10.20%. Over the past 5 years the partnership has managed to double its dividends.

Comm Bancorp, Inc. (CCBP) announced that its Board has approved an increase in its quarterly dividends from $0.27 to $0.28 per common share. Comm Bancorp, Inc. has consistently increased its dividends since 2005. The stock currently yields 2.90%.

Hudson City Bancorp, Inc. (HCBK) announced that its Board has approved an increase in its quarterly dividends to $0.14 per common share. Hudson City Bancorp, Inc. has consistently increased its dividends since 2000. The stock currently yields 4.00%.

Wesco Financial Corporation (WSC), which engages in insurance, furniture rental, and steel service center businesses, announced that its Board has approved a 2% increase in its quarterly dividends from $0.385 to $0.395 per common share. Wesco Financial Corporation is a dividend champion and an achiever, which has consistently increased its dividends for 37 years. The stock currently yields 0.50%.

Genuine Parts Company (GPC), which is engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials, announced that its Board has approved a 3% increase in its quarterly dividendsto $0.40 per common share. Genuine Parts Company is a dividend champion and an achiever, which has consistently increased its dividends for 53 years. The stock currently yields 4.80%.

Magellan Midstream Holdings, L.P. (MGG), which owns and controls Magellan GP, LLC, the general partner of Magellan Midstream Partners, L.P. (MMP), announced that its Board has approved an increase in its quarterly dividends to $0.359 per common share. Magellan Midstream Holdings, L.P. has consistently increased its dividends since it went public in 2006. This MLP currently yields 9.10%.

CMS Energy (CMS), which operates in energy businesses primarily in Michigan, announced that its Board has approved a 40% increase in its quarterly dividends to $0.125 per common share. CMS Energy had suspended its dividend in 2002 and initiated a reduced payment in 2007. The stock currently yields 3.00%.

Healthcare Services Group, Inc. (HCSG) announced that its Board has approved an increase in its quarterly dividends from $0.16 to $0.17 per common share. Healthcare Services Group, Inc. has consistently increased its dividends since 2003. The stock currently yields 2.00%.

The four stocks that grabbed my attention for further research include Polaris Industries(PII), Canadian National Railway(CNI), Westamerica Bancorporation(WABC) and Genuine Parts Company (GPC).

Full Disclosure: Long GE

Dividend Growth Investor

www.dividendgrowthinvestor.com

About the author:

Dividend Growth Investor
Saj Karsan founded an investment and research firm that is based on the principles of value investing. He has an MBA from the Richard Ivey School of Business, and an undergraduate engineering degree from McGill University.

Rating: 3.2/5 (5 votes)

Comments

kfh227
Kfh227 premium member - 5 years ago
PFE?

So far, PFE and BAC have disappointed me.

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