Another reason to monitor dividend increase announcements it to identify new candidates for purchase. When companies announce dividend increases, they show confidence in being able to pay those increased dividends. Significant increases pique my interest – I usually take some time to research the company or companies that make such aggressive moves.
Below is the table of dividend increases announced in the first two weeks of June, sorted by the last column, %Increase. Dividend amounts are annualized.
Dividend Increases: June 1 - June 15, 2014
|Helmerich & Payne, Inc.||HP||113.08||2.50||2.75||2.43%||+10.00|
|Southside Bancshares, Inc.||SBSI||27.33||0.80||0.84||3.07%||+5.00|
I own shares in TGT and CAT:
• Target Corporation (TGT) | growth 46 yrs | yield 3.63% @ $57.23 | 5-yr CAGR 21.37%
TGT operates large-format general merchandise and food discount stores in the U.S. and Canada. On Wednesday, June 11, the company increased its quarterly dividend by 21% to 52¢ per share. The dividend is payable on September 10 to shareholders of record on August 20. This increase adds $14.40 to DivGro's projected annual dividend income.
• Caterpillar Inc. (CAT) | growth 20 yrs | yield 2.62% @ $106.77 | 5-yr CAGR 8.45%
CAT is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Last week, the company increased its quarterly dividend by nearly 17% to 70¢ per share. The dividend is payable August 20, to shareholders of record on July 21. The increase adds $12 to DivGro's projected annual dividend income.
• Daktronics, Inc. (DAKT) | growth 10 yrs | yield 3.38% @ $11.83 | 5-yr CAGR 27.2%
DAKT is one of the world's largest suppliers of electronic scoreboards, computer-programmable displays, and large screen video displays and control systems. DAKT's board of directors approved an increase in its quarterly dividend to 60¢ per share, an increase of 9¢ per share or nearly 18%. The dividend is payable on August 1, to shareholders of record on June 30.
• Helmerich & Payne, Inc. (HP) | growth 42 yrs | yield 2.43% @ $113.08 | 5-yr CAGR 46.91%
HP is engaged in the exploration, production, and sale of crude oil and natural gas. The company does contract drilling of oil and gass wells for others. Recently, HP increased its quarterly dividend to 68.75¢ per share, an increase of 10% over the previous dividend of 62.50¢ per share. The dividend is payable on September 2, to shareholders of record on August 15.
Please note that I'm not recommending any of these stocks. Readers should do their own research before buying shares.