As the earnings season continues, many companies are increasing their dividends. While the dividend increase is positive for stocks, it doesn't indicate that the stock outlook is bullish. For income investors seeking to implement new dividend positions, they should consider if the outlook for the stock is positive so they don't fall into a bear trap. The equity summary score is a consensus ranking among all analyst ratings of the stock. A bullish outlook from the equity summary score is 7.0 or better on a 10 point system. The following list provides stocks that have increased their dividends recently and have a bullish outlook determined by their equity summary score.
Semiconductor-manufacturing giant Applied Materials (AMAT) processed a 13% jump in its quarterly payout, raising its dividend to 9 cents per share. The new dividend is payable June 14 to shareholders of record as of May 24. The new dividend yield, based on the closing price of $12.56, is 2.88%. AMAT has a payout ratio of 26%. It has a five-year annual dividend increase of 12.5%. AMAT has an equity summary score of 9.9 out of 10 for a very bullish outlook.
Iconic American agricultural-equipment maker Deere & Co. (DE) plowed through its balance sheet and dug up a 12% dividend increase, to 46 cents per share. The new dividend is payable May 1 to shareholders of record as of March 30. The new dividend yield, based on the closing price of $81.46, is 2.25%. DE has a payout ratio of 23%. It has a five-year annual dividend increase of 15.9%. DE has an equity summary score of 9.7 out of 10 for a very bullish outlook.
Communication-equipment maker Harris Corp. (HRS) supplies tactical radios to the military. The company listened to its balance sheet and moved its quarterly payout up 18%, to 33 cents per share. The new dividend yield, based on the closing price of $43.71, is 3.01%. HRS has a payout ratio of 24%. It has a five-year annual dividend increase of 24.5%. HRS has an equity summary score of 9.6 out of 10 for a very bullish outlook.
Electrical-components maker Hubbell Incorporated (HUB-B) sparked an 8% increase in its quarterly payout, to 41 cents per share. The new dividend yield, based on the closing price of $78.50, is 2.07%. HUB-B has a payout ratio of 34%. It has a five-year annual dividend increase of 4.4%. HUB-B has an equity summary score of 9.3 out of 10 for a very bullish outlook.
Chipmaker Cypress Semiconductor (CY) processed a 22% jump in its quarterly payout, to 11 cents per share. The new dividend is payable April 19 to shareholders at the close of business on March 29. The new dividend yield, based on the closing price of $15.84, is 2.76%. CY has a payout ratio of 18%. CY has an equity summary score of 8.9 out of 10 for a bullish outlook.
Medical-devices maker St. Jude Medical (STJ) put in a stent to boost the flow of its dividend, raising its payout 10%, to 23 cents per share. The new dividend is payable April 30 to shareholders of record as of March 30. The new dividend yield, based on the closing price of $42.09, is 2.15%. STJ has a payout ratio of 33%. It has a five-year annual dividend increase of 83.3%. STJ has an equity summary score of 8.9 out of 10 for a bullish outlook.
Athletic footwear retailer Foot Locker (FL) gave shareholders a March Madness win in the form of a 9% jump in its quarterly payout. The new dividend is payable on Apr. 27 to shareholders of record as of Apr. 13. The new dividend yield, based on the closing price of $30.18, is 2.38%. FL has a payout ratio of 37%. It has a five-year annual dividend increase of 7.6%. FL has an equity summary score of 8.6 out of 10 for a bullish outlook.
Energy and utility holding company PPL Corporation (PPL) sent a new dividend to shareholders that is approximately 2.86% higher. The new dividend yield, based on the closing price of $28.05, is 5.07%. PPL has a payout ratio of 52%. It has a five-year annual dividend increase of 3.4%. PPL has an equity summary score of 8.4 out of 10 for a bullish outlook.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Nick Train, manager of FGT says, Investors who are looking for reliable dividend growth may want to take a look at companies with strong brands, as well as companies in the media, technology and fund management industry.
ReplyDeletehigh dividend yield stocks
I like to say that if its earnings do not recover promptly, this is clearly unsustainable as the firm will be unable to reinvest, reducing its capacity to grow in the future. In that same Credit Suisse study, researchers found that, for companies with a given level of yield, those with lower payout ratios (i.e. more earnings to support the dividend policy) tended to have higher returns.
ReplyDeleteex dividend date