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Dynamic Dividend
Dynamic Dividend

Notable Dividend Hikes: CSV, MCK, CBS, MOLX, AFL

May 03, 2011 | About:

These are the dividend hikes featured by The Dynamic Dividend today: Carriage Services, Inc. (NYSE:CSV), McKesson Corporation (NYSE:MCK), CBS Corporation (NYSE:CBS), Molex (MOLX), Aflac Incorporated (NYSE:AFL).

Carriage Services Initiates Quarterly Dividend

Carriage Services, Inc. (NYSE:CSV) declared a quarterly dividend of $0.025 per share today, the death care company’s first since going public in 1996. Shares of CSV closed at $6.35 today, where they now feature a shiny new 1.57% dividend yield.

Analysts currently expect Carriage to earn $0.61 in 2012, giving the company a very manageable 16.4% forward payout ratio to begin its dividend-paying era.

McKesson Ups Dividend, Buybacks Following Strong Q4

McKesson Corporation (NYSE:MCK) reported fourth quarter results that edged analyst expectations after today’s closing bell. The healthcare services and information technology company also bolstered its dividend and buyback plan, sending shares higher in extended trading. McKesson posted fourth quarter earnings of $1.62 per share on $28.9 billion in revenue, topping the consensus views for both profit ($1.60 per share) and sales ($28.4 billion). Earnings rose 21% year-over-year, while sales grew by 8%. Looking ahead, the company expects to earn $5.55 to $5.75 per share in 2012, which brackets the average analyst estimate of $5.62 per share.

The company also declared a quarterly dividend of $0.20 per share within the release, an 11.1% improvement over the $0.18 it paid each of the previous four quarters. McKesson has now given shareholders three raises since 2008, improving its payout by a total of 233% over that short period.

In addition, McKesson’s board of directors tripled the company’s share repurchase allowance, authorizing $1 billion in buybacks in addition to the roughly $500 million balance existing under a previous plan.

So far investors haven’t been too impressed with the results, pushing shares down to $81.70 (-1.72%) in extended trading. At that level, the stock now features a 0.98% dividend yield.

CBS Reports Big First Quarter, Doubles Dividend

CBS Corporation (NYSE:CBS) reported first quarter earnings of $0.29 per share on $3.51 billion in revenue after today’s closing bell, easily topping the consensus estimates for both profit ($0.19 per share) and sales ($3.46 billion). The mass media company also doubled its dividend, sending shares higher in extended trading.

In a separate press release, CBS declared a quarterly dividend of $0.10 per share, a big jump from the $0.05 the company has paid each of the previous nine quarters. This is the first raise given to CBS shareholders since their payout was slashed by 81% in early 2009.

Shares of CBS have popped to $26.01 (+3.05%) in late trading, where they now yield 1.54%.

Molex Raises Dividend Again

Molex (MOLX) declared a quarterly dividend of $0.20 per share within today’s third quarter earnings release, pushing its payout higher by 14.3%. This marks the second time in six months the global electronic components company has given its shareholders a raise. Shares of MOLX closed at $26.63 today, where they now yield 3.00%.

Molex raised its dividend by a very similar 14.8% back in October, its first increase in more than two years.

Aflac’s Dividend Growth Streak to Continu

Aflac Incorporated (NYSE:AFL) chariman and CEO Dan Amos told the audience at yesterday’s annual shareholders meeting that he’s “confident we will extend the dividend to make it 29 years in a row.” Shares of AFL are currently trading at $56.34 (+0.34%), where they feature a 2.13% dividend yield.

Aflac has improved its annual dividend total ever year dating back to 1983, most recently giving shareholders a 7.1% raise last August.

About the author:

Dynamic Dividend
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 3.7/5 (6 votes)


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