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Guru Stocks Raising Dividends: EarthLink Inc., Ameriprise Financial Inc., Costco Wholesale Corp., Kellogg Company, International Paper Company

May 09, 2010 | About:
INVESTMENTU

gurujk

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This is the group of companies who raised their dividend during the week: EarthLink Inc. (ELNK), Ameriprise Financial Inc. (AMP), Costco Wholesale Corp. (COST), Kellogg Company (K), and International Paper Company (IP).

EarthLink Inc. (ELNK)

EarthLink provides a full range of innovative access, hosting and e-commerce solutions to thousands of communities through over 7,500 dial-up points of presence, and broadband and wireless technologies. Earthlink Inc. has a market cap of $917.1 million; its shares were traded at around $8.5 with a P/E ratio of 7.1 and P/S ratio of 1.4. The company's Board of Directors has increased the amount of its quarterly cash dividend on its common stock from $0.14 per share to $0.16 per share. This is the first dividend increase since EarthLink initiated a dividend policy in 2009. The stock yields 7.40%.

EarthLink, Inc. announced financial results for its first quarter ended March 31, 2010. The company reported a net income of $26.7 million or $0.25 per share. EarthLink reported revenue of $157.3 million in the first quarter of 2010, a 4 percent decline from the fourth quarter of 2009, and down 21 percent from the first quarter of 2009.

Michael Price owns shares of ELNK stock.

COO Joseph M Wetzel, Chief People Officer Stacie S Hagan, and Vice President, Products Kevin F Brand sold shares of ELNK stock.

Ameriprise Financial Inc. (AMP)

AMERIPRISE FINANCIAL, INC. is a financial planning and services company with financial advisors and registered representatives that provides solutions for clients' asset accumulation, income management and insurance protection needs. Ameriprise Financial Inc. has a market cap of $10.88 billion; its shares were traded at around $42.54 with a P/E ratio of 12.8 and P/S ratio of 1.4. The company raised its quarterly dividend from $0.17 to $0.18. The company has had higher annual dividend payments for four years in a row. The stock yields 1.50%.

AMP Finacial Inc. reported net income of $214 million for the first quarter of 2010 compared to the net income of $130 million for the first quarter of 2009. The company reported net revenues of $2,271 million for the first quarter of 2010.

Kenneth Fisher, Chris Davis, and John Keeley own shares of AMP stock.

Chairman and CEO James M Cracchiolo, Pres-AWM Products & Services Joseph Edward Sweeney, and Pres - U.S. Asset Mgmt, CIO William F Truscott sold shares of AMP stock.

Costco Wholesale Corp. (COST)

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. Costco Wholesale Corp. has a market cap of $25.18 billion; its shares were traded at around $57.31 with a P/E ratio of 21.6 and P/S ratio of 0.4. The company approved a quarterly increase from $0.18 to $0.205 per share. This is the sixth consecutive dividend increase since the company initiated a dividend policy in 2004. The stock yields 1.40%.

Costco Wholesale Corporation reported net sales of $5.83 billion for the month of April, the four weeks ended May 2, 2010, an increase of 13 percent from $5.18 billion in the same four-week period last year. For the thirty-five weeks ended May 2, 2010, the Company reported net sales of $51.04 billion, an increase of 9 percent from $46.66 billion during the similar period last year.

Tom Gayner, Ron Baron, and Richard Aster Jr own shares of COST stock.

Principal Accounting Officer David S Petterson, Executive VP W Craig Jelinek, and Chairman of the Board Jeffrey H Brotman sold shares of COST stock.

Kellogg Company (K)

Kellogg Company is the world's producer of cereal and a producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts, and ice cream cones. Kellogg Company has a market cap of $20.06 billion; its shares were traded at around $52.84 with a P/E ratio of 15.5 and P/S ratio of 1.7. The Company's Board of Directors announced plans to increase the quarterly dividend by 8% to $0.405 per share beginning with the third quarter of 2010. This would have been the sixth consecutive dividend increase for the company. The stock yields 2.90%. Kellogg Company had an annual average earning growth of 7.4% over the past 10 years.

Kellogg Company reported solid first quarter 2010 growth in internal net sales, as well as robust internal operating profit and currency-neutral earnings per share growth. The strong operating profit performance was driven by continued focus on cost savings, moderating inflation costs, and timing of advertising expenditures. First quarter net earnings were $418 million, a 30 percent increase over the first quarter a year ago. First quarter reported earnings per diluted share were $1.09, a 30 percent increase on a reported basis and a 27 percent increase on a currency-neutral basis. First quarter reported net sales increased 5 percent to $3.3 billion.

PRIMECAP Management and Robert Bruce own shares of K stock.

President and CEO A D David Mackay, EVP - COO & CFO John A Bryant, and 10% Owner W K Foundation Trust Kellogg sold shares of K stock.

International Paper Company (IP)

International Paper Co. is a global paper and forest products company thatis complemented by an extensive distribution system. International Paper Company has a market cap of $10.11 billion; its shares were traded at around $23.16 with a P/E ratio of 27.2 and P/S ratio of 0.5. The company approved an increase in its quarterly common stock dividend from $0.025 per share to $0.125 per share. This is the first dividend increase since the company slashed distributions by 90% in 2009. The stock yields 1.70%.

International Paper reported a preliminary first-quarter 2010 net loss attributable to common shareholders totaling $162 million ($0.38 per share) compared with a loss of $101 million ($0.24 per share) in the fourth quarter of 2009 and net earnings of $257 million ($0.61 per share) in the first quarter of 2009. Quarterly net sales were $5.8 billion compared with $6.0 billion in the fourth quarter of 2009 and $5.7 billion reported in the first quarter of 2009.

PRIMECAP Management and Brian Rogers own shares of IP stock.

Chairman and CEO John V Faraci, SVP and CFO Timothy S Nicholls, and Senior Vice President Maximo Pacheco sold shares of IP stock.


Rating: 2.0/5 (1 vote)

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