The Inaugural Weekly Sonar Report
|Ticker||Name||Market Cap (Billions)||Dividend Declaration Date||Previous Dividend||Last Dividend||Dividend Payout Change||Dividend Yield|
|FFG||FBL Financial Group Inc-Cl A||$1.0||02/20/2014||$0.15||$0.35||133%||3.5%|
|ARII||American Railcar Industries||$1.2||02/19/2014||$0.25||$0.4||60%||2.8%|
|MYE||Myers Industries Inc||$0.7||02/20/2014||$0.09||$0.13||44%||2.6%|
|GPC||Genuine Parts Co||$13.4||02/17/2014||$0.5375||$0.575||7%||2.6%|
|CXW||Corrections Corp Of America||$3.8||02/20/2014||$0.48||$0.51||6%||6.3%|
|WMT||Wal-Mart Stores Inc||$237.9||02/20/2014||$0.17||$0.18||6%||2.6%|
- FBL Financial Group (FFG) has been growing its dividend payout at a frenetic pace. At the end of 2012, FFG’s quarterly dividend was only $0.10, but now stands at $0.35. FFG’s indicative (forward) dividend yield is now 3.5%. Dividend growth and yield is music to our ears! The company, through its primary operating subsidiary, underwrites and markets a broad range of life insurance and annuities to individuals and businesses. With a market cap of only $1 billion, FFG is probably not on many dividend investors’ watch lists. So we have our first blip on the Sonar!
- American Railcar Industries (ARII) designs and manufactures tank railcars. Our sister publication, Oil & Energy Daily, brought American Railcar to readers’ attention before the blowout quarterly earnings release and dividend hike.
- Myers Industries (MYE) is a manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets. We like dividend growth, but with a five-year monthly beta of 2.2, this is the type of stock that we’d avoid right now.
- Allstate (ALL), the firm behind the hilarious “Mayhem is everywhere” advertisement campaign, announced a 12% increase in its dividend payout as well as a $2.5-billion common stock repurchase program to be completed over the next 18 months.
- Lorillard (LO) announced the sixth dividend increase in its history. The firm targets a payout ratio of 70 to 75% of its earnings.
- Sherwin-Williams (SHW), another S&P 500 Dividend Aristocrat, has increased its payout for 35 consecutive years.
- Coca-Cola (KO) raised its payout a healthy 9%, marking the company’s 52nd consecutive annual dividend increase. This Dow Jones Industrials component’s stock price is down 10% so far in 2014, and the company posted its fourth straight quarter of declining year-over-year sales this week.
- The dividend raise at Genuine Parts Company (GPC) should come as no surprise to Dividends & Income Daily readers. GPC shares were up 3.1% for the week.
- Corrections Corp of America (CXW), a publicly traded real estate investment trust (REIT), is the nation’s largest owner of partnership correction and detention facilities, and one of the largest prison operators in the United States, behind only the federal government and three states. We profiled CXW in this report.
- Walmart (WMT) was the largest company with a dividend raise this past week, but its payout was only increased a measly one cent, from $0.47 to $0.48 for 2014. The firm’s free cash flow (cash from operations minus capital expenditures) decreased in fiscal 2014 to $10.1 billion from $12.7 billion in fiscal year 2013.
- AbbVie (ABBV) is a research-based pharmaceutical company that became a separate company when Abbott Laboratories (ABT) decided to split into two. Both companies are S&P 500 Dividend Aristocrats.
Dividend Action Watch
|Ticker||Name||Tentative Dividend Declaration Date|
|HD||Home Depot Inc/The||02/25/2014|
|RGR||Sturm Ruger & Co Inc||02/26/2014|
|DE||Deere & Co||02/26/2014|
|NRF||NorthStar Realty Finance Corp||02/26/2014|
|UNS||UNS Energy Corp||02/26/2014|
|GTY||Getty Realty Corp||02/27/2014|
|MJN||Mead Johnson Nutrition Co||02/27/2014|
|STJ||St Jude Medical Inc||02/27/2014|
|SWX||Southwest Gas Corp||02/27/2014|
|TJX||TJX Cos Inc/The||02/27/2014|
|AWK||American Water Works Co Inc||02/28/2014|
|DPZ||Domino’s Pizza Inc||02/28/2014|
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Dividends & Income Daily Research Team