Gas and Utility Companies Keep Dividend Increases Flowing
The first week of March hasn’t brought as many dividend increases as we’ve seen in recent weeks but any increases are welcome news to income investors in this day and age. Wal-Mart is the highest profile company raising its dividend this week, and several notable gas companies have also increased their dividends.
General Shares
Southwest Gas Corp. (SWX), a supplier of natural gas to Arizona, Nevada and California, has increased its dividend 5.3% to $0.25 per share. This gives a new yield of 3.38%. The Andersons (ANDE), agriculture and transportation operators, has increased its quarterly dividend 3% to $0.09, leaving their new yield at a measly 1.08%. Hanover Insurance (THG), a provider of insurance and other financial products, has raised its dividend a generous 33%, giving a payout of $0.25 and a new yield of 2.34%. Similarly to Hanover Insurance, Fred’s (FRED) has increased its dividend 33% giving a new payout of $0.04 a share, and a yield of 1.50% based on this payout.
Qualcomm (QCOM), an advanced wireless communications developer, has increased its dividend to $0.19 per share, resulting in a new yield of 1.95%. With the dividend increase came news that the company planned to buy back up to $3 billion of common stock. General Dynamics (GD), one of the world’s largest military contractors and corporate jet manufacturers, announced that it’s dividend would be increased 10.58% to $0.42 per share. this generates a yield of 2.30%. American Greetings (AM), a large multinational greeting card company has increased its dividend 17% to $0.14 per share per quarter, producing a new yield of 2.71%. Finally, WGL Holdings (WGL), a supplier of natural gas to Washington DC and surrounding areas, has increased its dividend 2.7% to $0.3775 per share. The new yield based on this payout is 4.52%.
Dividend Achievers
PPL Corp. (PPL), the parent company of PPL Utilities which also has holdings in the UK, has increased its dividend for the 11th consecutive year, up 1.4% to $0.35 per share. The stocks new yield based on this dividend is 4.83%. Piedmont Natural Gas (PNY), supplier of natural gas to North Carolina, South Carolina and Tennessee and another dividend achiever, has increased its dividend for the 32nd year in a row, up 3.7% to $0.28 per share, taking their new yield to 4.25%.
Dividend Aristocrats
The only dividend aristocrat to feature in this week’s dividend increases is Wal-Mart (WMT), the huge multinational retailer. Wal-Mart has announced its quarterly dividend payout will increase 11% to give a new payout of $1.21 per share, making it the 36th consecutive year that Wal-Mart has increase its dividend. The new yield based on this payout is 2.24%.
Final Thoughts
Most of the companies featured in this issue aren’t really worth a second glance when it comes to their yield price. The only ones that are worth considering investing in are Piedmont Natural Gas, WGL Holdings and possibly Southwest Gas Corp. – all the natural gas distributors featured. Wal-Mart might be worth considering due to its, generally steady growth over the years, whilst raising their dividends every year to hold onto their dividend aristocrat status.
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