Edison International (EIX, Financial), Broadcom Inc (AVGO, Financial) and CubeSmart (CUBE, Financial) announced dividend raises on Thursday. These high yield stocks have also been paying dividends for more than a decade.
Edison
Shares of Edison International were unchanged at a price of $71.45 per share in after-hours trading on Thursday after the company announced a 4% increase in the quarterly cash dividend to 63.75 cents per common share, up from the previous dividend of 61.3 cents.
Edison will send the payment out to its shareholders on Jan 31, 2020. Investors must be on the company’s books no later than Dec. 31 to benefit. The ex-dividend date is scheduled for Dec. 30.
Based on Thursday’s closing share price, the quarterly cash dividend produces a yield of 3.43% for both the forward dividend and the trailing 12-month dividend. As of Dec. 12, the industry median yields 3.27% for the forward dividend and 3.22% for the trailing 12-month dividend, while the S&P 500 offers a dividend yield of 1.81%.
The Rosemead, California-based distributor of electricity has paid quarterly dividends from July 31, 1988, to Oct. 31, 2000, and from Jan. 31, 2004 to Oct. 31, 2019. Edison has continuously increased dividends since 2003.
The trailing 12-month dividend per share rose 12.9% over the past five years through the final quarter of 2018.
Edison funds the dividend with a liquidity of $547 million and yearly operating income of $89 million over the past year through Sept. 29.
The stock price has risen nearly 26% year to date. The 52-week range is $53.40 to $76.45.
The stock has a market capitalization of $25.62 billion, a price-book ratio of 1.95 and a price-sales ratio of 1.92.
Based on the Peter Lynch chart, the stock seems to be trading far above its fair value.
Wall Street sell-side analysts have issued an overweight recommendation rating with an average target price of $77.62 per share.
Broadcom
Shares of Broadcom closed down 1.40% to a price of $323.22 per unit in extended trading on Dec. 11 following the announcement of a 22.6% hike in the quarterly cash dividend to $3.25 per common share, up from the previous dividend of $2.65.
Broadcom will pay the quarterly dividend to its shareholders on Dec. 31. Investors must be registered on the company’s books no later than Dec. 23 to receive the payment. The ex-dividend date is scheduled for Dec. 20.
Based on Thursday’s closing share price of $327.8, the distribution produces a yield of 3.23% for both the forward dividend and the trailing 12-month dividend. The industry median has a forward dividend yield of 2.08% and a trailing 12-month dividend yield of 2.03%.
The San Jose, California-based semiconductors company has paid quarterly dividends from Dec. 30, 2010, to Oct. 1, 2019. The company has achieved a continuous dividend increase since 2010.
The trailing 12-month dividend per share grew 53.2% over the past five years through the final quarter of 2018, as indicated by the chart below from GuruFocus.
Broadcom backs the quarterly dividend with $5.06 billion in cash available on hand, along with nearly $10 billion in yearly operating income. Figures are as of Nov. 3.
The stock has gained 29% year to date. The 52-week range is $230.33 to $330.16.
The stock has a market capitalization of $130.03 billion, a price-earnings ratio of 46.1, a price-book ratio of 6.05 and a price-sales ratio of 6.2.
The Peter Lynch chart below shows that the stock is trading a bit over its fair value.
Sell-side analysts in Wall Street issued an overweight recommendation rating for shares of Broadcom with an average target price of $339.61.
CubeSmart
Shares of CubeSmart rose 0.6% to $30.13 per unit in after-hours trading on Dec. 11 after the company announced that the quarterly dividend will represent a 3.1% increase from the previous dividend. The payment will go out on Jan. 15, 2020 to shareholders of record as of Jan. 2. The Malvern, Pennsylvania-based real estate investment trust will pay 33 cents cash per common share versus the prior 32 cents cash per common share. The ex-dividend date is scheduled for Dec. 31.
Based on Thursday’s closing share price of $29.95, the quarterly dividend generates a yield of 4.27% for both the forward dividend and the trailing 12-month dividend. The industry median yields 5.07% for the forward dividend and the trailing 12-month dividend.
CubeSmart has continuously paid quarterly dividends from Jan. 24, 2005 to Oct. 15, 2019, and has increased them since 2009.
The trailing 12-month dividend per share increased significantly over the past five years through the last quarter of fiscal 2018.
CubeSmart supports the payment of the quarterly dividend with $7.3 million in cash and cash equivalents and yearly operating income of approximately $310-$350 million as of Sept. 30.
Year-to-date, the stock price has risen 7%. The 52-week range is $27.97 to $36.32.
The stock has a market capitalization of $5.8 billion, a price-earnings ratio of 32.55, a price-book ratio of 3.2 and a price-sales ratio of 9.
The Peter Lynch chart shows that the stock is trading far above its fair value, so share price is not cheap.
Sell-side analysts in Wall Street issued a hold recommendation rating for shares of CubeSmart with an average target price of $33.17.
Disclosure: I have no positions in any securities mentioned.
