It is very easy for a CEO to get on a conference call and talk about confidence in the future while communicating glowing projections, but do they really believe what they are saying? Are there any actions that would make you believe what they are saying? Senior management purchasing company stock is a strong indicator of confidence in the future. Another indicator is sticking with a dividend plan, including regular increases.
Below are several select companies with a management confident enough to increase their cash dividends:
Keithley Instruments (KEI) designs, develops, manufactures, and markets complex electronic instruments and systems for high-performance production testing. May 10th the company increased its quarterly dividend to $0.0375/share. The dividend is payable June 30, 2010, to shareholders of record at the close of business on June 16, 2010. The ex-dividend date is June 14, 2010. The yield based on the new payout is 1.47%.
Timken Co. (NYSE:TKR) is a manufacturer of highly engineered bearings and alloy steels. May 11th the company raised its quarterly dividend to $0.13/share The dividend is payable on June 2, 2010, to shareholders of record as of May 21, 2010. The ex-dividend date is May 19, 2010. The yield based on the new payout is 1.52%.
CPI Corp. (CPY) sells and manufactures professional portrait photography of babies, children, adults, and family groups. May 11th the company increased its quarterly dividend to $0.25/share. The ex-dividend date is May 19, 2010. The yield based on the new payout is 3.13%.
OPNET (OPNT) offers management software for networks and applications. May 11th the company raised its quarterly dividend to $0.10/share. The yield based on the new payout is 2.39%.
It takes more than confidence to increase dividends each and every year — it takes a well managed company. For a list of stocks with a long string of consecutive cash dividend increases, see this list.
Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys:: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
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