1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (956) 

Dividend Stocks Acting Like Money Machines: Brinker, Todd Shipyards, Wayne Savings, Oxford Industries,

Dividend Stocks Acting Like Money Machines

April 06, 2010 | About:

Growing up in the late 60’s early 70’s, I spent a fair amount of time reading comic books. I don’t remember much about them, but I do remember several of classic ads. Of course, there was the Charles Atlas ad where the beach bully kicked sand on the skinny boy and his girlfriend. But the ad that I remember the best was the “Magnificent Marvelous Money Machine“. It was a wooden block with some rollers in which you would put a one dollar bill in one side and a five dollar bill would come out the other. Being very young and naive, my mom had a tough time convincing me that it was just a trick and something like that didn’t really exist. Sorry mom, but you were wrong on this one. The “Magnificent Marvelous Money Machine” does exist, but it has a different name. It is called Dividend Growth Investing.

Below are several companies that are multiplying their shareholders return by increasing their cash dividends:

Brinker (NYSE:EAT) operates or franchises over 1,700 casual dining restaurants, including more than 1,500 Chili’s, and owns a minority interest in Romano’s Macaroni Grill. March 26th the company increased its quarterly dividend 27% to $0.14/share. The yield based on the new payout is 2.95%.

Todd Shipyards (TOD) a shipyard and dry dock facilities in the Pacific Northwest. March 29th the company raised its quarterly dividend to $0.075/share. The dividend is payable June 23, 2010 to all shareholders of record as of June 8, 2010. The yield based on the new payout is 1.83%.

Wayne Savings (NASDAQ:WAYN) is the holding company for two bank subsidiaries that operate banking offices in Ohio. March 29th the company increases its quarterly dividend 20% to $0.06/share. The dividend is payable on April 28, 2010 to stockholders of record as of April 14, 2010. The ex-dividend date is April 12, 2010. The yield based on the new payout is 2.84%.

Oxford Industries (NYSE:OXM) produces branded and private label apparel for men, women, and children. March 30th the company raised its quarterly dividend 22% to $0.11/share. The dividend is payable on April 30, 2010 to shareholders of record as of the close of business on April 15, 2010. The ex-dividend date is April 13, 2010. The yield based on the new payout is 2.16%.

In addition to the above dividend raisers, two Dividend Achiever declared regular quarterly cash dividends. March 26th AT&T (NYSE:T) declared a quarterly dividend of $0.42/share with a 6.50% yield [Analysis]. The dividend is payable on May 3, 2010, to stockholders of record at the close of business on April 9, 2010. Also, McCormick & Company (NYSE:MKC) on March 31st declared a quarterly dividend of $0.26/share with a 2.70% yield. The dividend is payable April 26, 2010, to shareholders of record on April 12, 2010. The ex-dividend date is April 8, 2010.

It is a cute trick to turn one dollar into five, but great dividend stocks grow their payout on a consistent basis. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long T. See a list of all my income holdings here.

About the author:

Visit Dividends4Life at:

Rating: 4.1/5 (8 votes)


AltonDelmote - 7 years ago    Report SPAM
Excellent analysis on dividend stocks.....

Penny Stocks
JohnWilson - 7 years ago    Report SPAM
Your information is very helpful...I have little knowledge about dividend stocks which i am sharing with you.A stock dividend is a dividend that is paid in shares of the company's stock rather than in cash. A stock dividend, like a cash dividend, is a distribution of part of a company's earnings in proportion to the number of shares each shareholder owns.One advantage to the shareholder of a stock dividend as opposed to a cash dividend is that no tax is due on a stock dividend until the stock is sold, whereas tax is due for the tax year received for a cash dividend.

Keithsan - 6 years ago    Report SPAM
Great article on dividend stocks. If you have a chance it would be great if you could explain the minutia around the ex dividend date vs record date.


Penny Stock

Please leave your comment:

Performances of the stocks mentioned by Dividends4Life

User Generated Screeners

browntroutFwd PE <=9, Gross Margin >= 25
gelayor65All Stocks With Blackrock Heav
jan.ellsbergerHernhag rev5
jan.ellsbergerHernhag rev4
jan.ellsbergerHernhag rev3
jan.ellsbergerHernhag rev2
BoubaPFS Value Sector
eae010Forward Growth Edited
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat