The Weekly Sonar – March 3, 2014

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Ticker Name Market Cap (Billions) Dividend Declaration Date Previous Dividend Latest Dividend Dividend Payout Change Dividend Yield
CATO Cato Corp-Class A $0.8 02/28/2014 $0.05 $0.3 500% 4.3%
SPW SPX Corp $4.8 02/27/2014 $0.25 $0.375 50% 1.4%
BALT Baltic Trading Ltd $0.4 02/26/2014 $0.02 $0.03 50% 1.8%
AMSF AMERISAFE Inc $0.8 02/26/2014 $0.08 $0.12 50% 1.1%
ORA Ormat Technologies Inc $1.3 02/25/2014 $0.04 $0.06 50% 0.9%
FIG Fortress Investment Group $4.3 02/27/2014 $0.06 $0.08 33% 3.7%
EOG EOG Resources Inc $51.7 02/24/2014 $0.1875 $0.25 33% 0.5%
KW Kennedy-Wilson Holdings Inc $2.3 02/26/2014 $0.07 $0.09 29% 1.4%
TXRH Texas Roadhouse Inc $1.9 02/24/2014 $0.12 $0.15 25% 2.3%
TJX TJX Companies Inc $43.7 02/26/2014 $0.145 $0.175 21% 1.1%
DRH Diamondrock Hospitality Co $2.5 02/25/2014 $0.085 $0.1025 21% 3.2%
FR First Industrial Realty Trust $2.2 02/25/2014 $0.085 $0.1025 21% 2.1%
HD Home Depot Inc $115.5 02/25/2014 $0.39 $0.47 21% 2.3%
IQNT Inteliquent Inc $0.4 02/27/2014 $0.0625 $0.075 20% 2.1%
IPCC Infinity Property & Casualty Corp $0.8 02/25/2014 $0.3 $0.36 20% 2.0%
NRF NorthStar Realty Finance Corp $5.1 02/26/2014 $0.21 $0.25 19% 6.4%
PLD Prologis Inc $20.6 02/26/2014 $0.28 $0.33 18% 3.2%
ROST Ross Stores Inc $15.6 02/27/2014 $0.17 $0.2 18% 1.1%
FFIC Flushing Financial Corp $0.6 02/25/2014 $0.13 $0.15 15% 2.9%
ALB Albemarle Corp $5.2 02/25/2014 $0.24 $0.275 15% 1.7%
XEC Cimarex Energy Co $10.1 02/26/2014 $0.14 $0.16 14% 0.6%
CB Chubb Corp $21.7 02/27/2014 $0.44 $0.5 14% 2.3%
KSS Kohl’s Corp $12.0 02/26/2014 $0.35 $0.39 11% 2.8%
MENT Mentor Graphics Corp $2.5 02/27/2014 $0.045 $0.05 11% 0.9%
SWX Southwest Gas Corp $2.5 02/27/2014 $0.33 $0.365 11% 2.7%
UNS UNS Energy Corp $2.5 02/25/2014 $0.435 $0.48 10% 3.2%
MJN Mead Johnson Nutrition Co $16.4 02/28/2014 $0.34 $0.375 10% 1.7%
RHP Ryman Hospitality Properties $2.1 02/28/2014 $0.5 $0.55 10% 5.2%
JWN Nordstrom Inc $11.9 02/26/2014 $0.3 $0.33 10% 2.1%
GPS Gap Inc/The $19.6 02/27/2014 $0.2 $0.22 10% 2.0%
GLT P.H. Glatfelter Co $1.3 02/26/2014 $0.1 $0.11 10% 1.4%
NATL National Interstate Corp $0.6 02/28/2014 $0.11 $0.12 9% 1.5%
CVA Covanta Holding Corp $2.3 02/26/2014 $0.165 $0.18 9% 4.0%
STJ St Jude Medical Inc $19.1 02/24/2014 $0.25 $0.27 8% 1.6%
GGP General Growth Properties $19.5 02/26/2014 $0.14 $0.15 7% 2.7%
ROIC Retail Opportunity Investments Corp $1.1 02/24/2014 $0.15 $0.16 7% 4.3%
ENH Endurance Specialty Holdings $2.3 02/27/2014 $0.32 $0.34 6% 2.6%
TDS Telephone And Data Systems $2.5 02/26/2014 $0.1275 $0.134 5% 2.4%
SFNC Simmons First National Corp $0.6 02/28/2014 $0.21 $0.22 5% 2.5%
SEMG SemGroup Corp-Class A $2.9 02/27/2014 $0.21 $0.22 5% 1.3%
KMB Kimberly-Clark Corp $41.9 02/25/2014 $0.81 $0.84 4% 3.0%
SDRL Seadrill Ltd $17.3 02/25/2014 $0.95 $0.98 3% 10.6%
BGS B&G Foods Inc $1.6 02/24/2014 $0.33 $0.34 3% 4.5%
WR Westar Energy Inc $4.4 02/26/2014 $0.34 $0.35 3% 4.1%
NADL North Atlantic Drilling Ltd $2.1 02/25/2014 $0.225 $0.23 2% 10.9%
MGRC McGrath RentCorp $0.8 02/27/2014 $0.24 $0.245 2% 3.0%
GEF/B Greif Inc-Cl B $2.5 02/24/2014 $0.62 $0.63 2% 4.6%
VNR Vanguard Natural Resources $2.3 02/26/2014 $0.2075 $0.21 1% 8.4%

 

  • The Cato Corporation (CATO) is a specialty retailer of women’s fashions and accessories. It operates over 1,300 stores in 32 states. The 500% dividend payout change is misleading; at the end of 2012, CATO accelerated its 2013 full-year dividend payouts in an anticipation of increased tax rates. Nonetheless, CATO’s 4.3% indicative (forward) dividend yield is among the highest of any apparel retailer. With a cash balance that’s equivalent to 28% of its market cap and little debt, it’s not hard to see why CATO’s yield is high. However, we’re not crazy about the consumer discretionary sector right now.
  • This week’s list includes several other retailers that increased their payouts including The TJX Companies (TJX), Ross Stores (ROST), Kohl’s (KSS), Nordstrom (JWN) and The Gap (GPS).
  • Kimberly-Clark (KMB), a Dividend Aristocrat, raised its dividend for the 42nd consecutive year. The company claims that its well-known brands are used by nearly 25% of the world’s population every day. 
  • Home Depot (HD) was by far the largest company to raise its dividend last week. The home improvement retailer targets a dividend payout ratio of 50%.
  • According to the Financial Times, Fortress Investment Group (FIG) is sitting on losses of around $8 million on an investment in Bitcoin. Luckily, this is a small amount for the investment management firm, which has over $60 billion of assets under management. FIG suspended its dividend amid the financial crisis in 2008, but has now raised its payout twice since reinstituting its dividend in 2012.   
  • SeaDrill (SDRL) is one of the largest offshore deepwater drilling companies in the world, and is a favorite among income investors due to its 10%+ yield. However, the company is free cash flow negative (operating cash flow minus capital expenditures) and has to rely heavily upon the debt market to finance investment and pay its dividend.

 

Irregular Dividend Payouts

Ticker Name Market Cap (Billions) Dividend Declaration Date Previous Dividend Latest Dividend 12-Month Dividend Yield
ROYT Pacific Coast Oil Trust $0.5 02/24/2014 $0.13396 $0.12574 12.9%
RGR Sturm Ruger & Co Inc $1.2 02/25/2014 $0.58 $0.54 3.3%

 

  • Sturm, Ruger & Co. (RGR), a firearm manufacturer, pays a dividend of approximately 40% of quarterly net income.

 

Dividend Initiations

Ticker Name Market Cap (Billions) Dividend Declaration Date Dividend Dividend Yield
EXH Exterran Holdings Inc $2.7 02/25/2014 $0.15 1.5%
STAY Extended Stay America Inc $5.2 02/26/2014 $0.08 (prorated) 2.4%

 

  • Exterran Holdings (EXH) engages in full-service natural gas compression and is a provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications. EXH’s Board of Directors authorized the company’s first dividend payment, which results in an implied dividend yield of 1.5%.

Dividend Action Watch

Ticker Name Tentative Dividend Declaration Date
IGT International Game Technology 03/04/2014
SLGN Silgan Holdings Inc 03/04/2014
QCOM QUALCOMM Inc 03/05/2014
AMAT Applied Materials Inc 03/05/2014
SPLS Staples Inc 03/06/2014
GD General Dynamics Corp 03/06/2014
DVN Devon Energy Corp 03/06/2014
CECE Ceco Environmental Corp 03/06/2014
CL Colgate-Palmolive Co 03/07/2014
TMK Torchmark Corp 03/07/2014

 

Source: Dividends & Income Daily Research, Bloomberg

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[cfsp key=”di_report_styling_2″] Ticker Name Market Cap (Billions) Dividend Declaration Date Previous Dividend Latest Dividend Dividend Payout Change Dividend Yield CATO Cato Corp-Class A $0.8 02/28/2014 $0.05 $0.3 500% 4.3% SPW SPX Corp $4.8 02/27/2014 $0.25 $0.375 50% 1.4% BALT Baltic Trading Ltd $0.4 02/26/2014 $0.02 $0.03 50% 1.8% AMSF AMERISAFE Inc $0.8 02/26/2014 $0.08 $0.12...