Daily dividend news for investors in dividend stocks

34 Companies Expected to Raise Dividends in the Next 8 Weeks

In compiling the Dividend Champions list I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again. New Format My previous articles in this series were generally published just after mid-month and included companies with Ex-Dividend Dates in the following month. However, as some commenters noted, this led to a few companies “falling through the cracks” because they had Ex-Dividend Dates in the month after that, but announced increases several weeks in advance. So, beginning with this article, I am going to switch from a monthly format to a twice-monthly one and extend the forward look to a... more


H&R Block: Solidifying Market Dominance, Great Momentum, Healthy Dividend Yield

H&R Block (HRB) is by far the largest provider of tax preparation and other financial and business services in the United States. The company's biggest and oldest business is Tax Services, which generates 77% of revenues and over 90% of operating profits. Block has 12,000 offices across the country, of which about 1/3rd are run by franchisees. These offices processed over 23 million tax returns in 2010, 15.5% of all returns filed. To put Block's dominance in perspective, second place Jackson-Hewitt (JTX) processed about 2.5 million - about 1/10th of HRB.Although Block's bread-and-butter is office prepared returns, the company has aggressively moved into the "do-it-yourself" software-based return preparation market in the past year. While H&R produces its own software... more

SeekingAlphaStock symbol(s): HRB,INTU,JTX

High Dividend Stocks: Rising Oil Prices Will Increase Dividends

If you're looking for dividend paying stocks that will benefit from the current rise in oil prices, royalty trusts might interest you. With oil ending the week at over $113/barrel today, it seems logical that energy-based royalty trusts with exposure to oil should be able to increase their dividends in the near future. We found 2 of these high dividend stocks that are going ex-dividend next week, on April 13th: Sabine Royalty Trust, (SBR), and BP Prudhoe Bay, (BPT). SBR's April distribution reflects primarily the oil production for January 2011 and the gas production for December 2010. Note the significant increases in volume and price for oil for these months: "Revenues are only posted and distributed when they are received. Most energy companies normally issue payment of... more

SeekingAlphaStock symbol(s): BPT,SBR

Way to Stick It to Me, Seagate

Late yesterday, the company issued upbeat fiscal third-quarter guidance and reinstated its dividend policy. Seagate quit paying dividends in 2009 to shave costs and avoid what appeared to be an irreversible slide toward bankruptcy. No longer. Seagate expects $2.7 billion in fiscal third quarter revenue. Analysts had been calling for $2.62 billion in revenue, Barron's reports. The company's $0.18 per share dividend, payable on June 1 to those holding shares as of May 2, amounts to a 5% yield when annualized.... more

The Motley FoolStock symbol(s): EMC,STX,WDC

Value Ideas: 9 Deeply Undervalued, High-Yield Utilities for a Watchlist

Are you looking for value ideas? If so, this list may be a helpful starting place for that search. Below we present nine utilities stocks with dividends between 4%-7%. These stocks are also undervalued by the Graham Number. Benjamin Graham, the man who developed this equation, was a former mentor of Warren Buffett and is the so-called “Godfather” of value investing.The Graham Number, or the maximum price an investor should pay for a stock, is derived using only two data points: Current earnings per share and current book value per share.The Graham Number = Fair Value of a Stock = Square Root of (22.5) x (TTM Earnings per Share) x (MRQ Book Value per Share).The math of the Graham number is relatively straightforward. It is predicated on the belief that the price-to-earnings... more

SeekingAlphaStock symbol(s): AEP,AVA,DTE,ETR,GXP,PNW,POR,SCG,WR

5 Dividend Stocks Ready to Become Champions Soon

The difference between a “dividend champion” and a “dividend contender” is a bit arbitrary, but it still makes for an interesting screen criteria. A “dividend champion” represents a company that has not only paid, but also increased, its dividend payout for at least 25 straight years. A “dividend contender” is a company that has increased its payout for at least 10 years, but not more than 24 years. In the upcoming year we have 5 stocks on the cusp of becoming champions. While there might be debate as to the growth prospects of “dividend champions” or the sustainability of “dividend contenders,” it is widely accepted that a slashed dividend creates a negative signal. Add in the fact that these companies are bidding... more

SeekingAlphaStock symbol(s): DCI,HGIC,MCY,TMP,TROW

5 Surprising and Special Dividend Stocks

Special situation, meet income investingIf you've clicked on this article, you probably love dividend stocks as much as I do. I've written extensively about income investing, detailing the dividend play for a lifetime, the outstanding dividend stock I was buying in January, and other high yields to own for decades. But I think you can do even better by combining your focus on dividend payers and special situations. At its heart, special situations investing is about finding specific events, such as forced selling of a spinoff, that aren't yet reflected in stock prices for technical reasons rather than fundamental business reasons. Such events often create big inefficiencies in the market.... more

The Motley FoolStock symbol(s): BP,CHD,CSCO,MCD,MSFT,SBUX,SSW

Dividend Investors Should Favor Pepsi Over Coke

The other day I was sharing my thoughts with subscribers to my new blog, My Own Analyst, about how some downtrodden Mega Caps were looking like they may finally be turning. In the course of highlighting seven that were within 15% of their 52-week lows, one name surprised me: Pepsico (PEP). I recall 18 months or so ago participating in a debate during an investment committee meeting at one of my clients, and we opted to go with Coca-Cola (KO) over PEP for its higher international exposure, primarily. We also were somewhat concerned over the snack food exposure at PEP. Take a look at how the two stocks have diverged so dramatically since Q3:Click to enlarge While I am no expert on all of the nuances of these two mature companies, one factor that I believe accounts for the vast majority of... more

SeekingAlphaStock symbol(s): KO,PEP

WWE's Dividend About to Get Slammed?

World Wrestling Entertainment, Inc. (WWE) announced plans to expand beyond wrestling and rebrand itself simply as "WWE" this week. I guess that's pretty interesting, but not nearly as interesting as a small change at the bottom of the company's press release that caught my eye.It's fairly well known that, while WWE's stock carries an unwieldy dividend yield of more than 11%, the stress on the company's cash flow is substantially mitigated by founder Vince McMahon and his family taking a smaller dividend on their shares. When the company raised its quarterly dividend by 50% back in 2008, the McMahons waived the increase on their Class B shares. This was a big deal, essentially evening the total amount distributed to Class A and Class B shares each quarter despite Class... more

SeekingAlphaStock symbol(s): WWE

Telefonica: Company With High Dividend Yields, Low Payout Ratios

For our dividend portfolio we follow the strategy pioneered by Tweedy Browne of buying companies with high dividend yields but low payout ratios. You can read Tweedy Browne’s investing studies here. Telefonica (TEF) is one company we own that fits the bill. TEF offers a current yield of approximately 6% and over the last five years has paid out only an average 41% of free cash flow as dividends.Telefonica is headquartered in Spain and is the fifth largest telecommunications company in the world with 278M accesses (or total connections) as of June 2010. The company has operations in Spain, Europe and Latin America. Although the company is Spanish, 70% of sales are outside Spain. A detailed overview of Telefonica’s business and growth is shown in Appendix A.Many telecom... more

SeekingAlphaStock symbol(s): AMOV,CHL,CHU,DTEGY,FTE,T,TEF,VOD,VZ