Monday, June 16, 2014

Dividend Increases, June 1-15, 2014

Twice a month I report the dividend increases announced for stocks in my watch list. I compile this information to see if any dividend increases have been announced for DivGro stocks. If so, I make yield on cost (YoC) and projected annual dividend income adjustments. Last week, two of the stocks I own (TGT and CAT) announced substantial dividend increases!

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

Company

Ticker
Price
(Jun 13)
Previous
Dividend
New
Dividend
Current
Yield

%Increase
Target Corporation TGT 57.23 1.72 2.08 3.63% +20.93
Caterpillar Inc. CAT 106.77 2.40 2.802.62% +16.67
Daktronics, Inc. DAKT 11.83 0.36 0.40 3.38% +11.11
Helmerich & Payne, Inc. HP 113.08 2.50 2.75 2.43% +10.00
Questar Corporation STR 23.92 0.72 0.76 3.18% +5.56
Southside Bancshares, Inc. SBSI 27.33 0.800.84 3.07% +5.00
Previous post: Dividend Increases: May 17 - May 31, 2014

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.

Two stocks I don't own are raising their dividend by more than 7%:

• 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.

4 comments :

  1. We own shares in TGT and couldn't be happier with the recent announcement. I don't think anyone out there had expected a 20.9% increase but I'm sure welcomed it with open arms. :) There is still some things to iron out for TGT with their Canadian stores and dealing with the recent credit card breach but I have no doubt they right those ships. Until then, I'm happy to sit back and collect my dividends (that just increased roughly 21%). AFFJ

    ReplyDelete
    Replies
    1. Yeah, 21% is really fantastic! I agree with you that TGT will iron things out. For a while I considered to buy more shares of TGT rather than WMT this month. Diversification, as well as my goal to own 36 stocks by year's end, won out in the end....

      Thanks for stopping by!

      Delete
  2. These were all nice increases, especially TGT! I don't know much about DAKT so I'll have to take a closer look. I've looked at HP but decided to grab ESV instead for more offshore exposure.

    ReplyDelete
    Replies
    1. Hi Brent -- thanks for stopping by! I love the fact that both TGT and CAT increased their dividends so substantially... it covers inflation several times over! ESV looks interesting -- I'll take a look.

      Take care!

      Delete

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