The Weekly Sonar – March 3, 2014

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TickerNameMarket Cap (Billions)Dividend Declaration DatePrevious DividendLatest DividendDividend Payout ChangeDividend Yield
CATOCato Corp-Class A$0.802/28/2014$0.05$0.3500%4.3%
SPWSPX Corp$4.802/27/2014$0.25$0.37550%1.4%
BALTBaltic Trading Ltd$0.402/26/2014$0.02$0.0350%1.8%
AMSFAMERISAFE Inc$0.802/26/2014$0.08$0.1250%1.1%
ORAOrmat Technologies Inc$1.302/25/2014$0.04$0.0650%0.9%
FIGFortress Investment Group$4.302/27/2014$0.06$0.0833%3.7%
EOGEOG Resources Inc$51.702/24/2014$0.1875$0.2533%0.5%
KWKennedy-Wilson Holdings Inc$2.302/26/2014$0.07$0.0929%1.4%
TXRHTexas Roadhouse Inc$1.902/24/2014$0.12$0.1525%2.3%
TJXTJX Companies Inc$43.702/26/2014$0.145$0.17521%1.1%
DRHDiamondrock Hospitality Co$2.502/25/2014$0.085$0.102521%3.2%
FRFirst Industrial Realty Trust$2.202/25/2014$0.085$0.102521%2.1%
HDHome Depot Inc$115.502/25/2014$0.39$0.4721%2.3%
IQNTInteliquent Inc$0.402/27/2014$0.0625$0.07520%2.1%
IPCCInfinity Property & Casualty Corp$0.802/25/2014$0.3$0.3620%2.0%
NRFNorthStar Realty Finance Corp$5.102/26/2014$0.21$0.2519%6.4%
PLDPrologis Inc$20.602/26/2014$0.28$0.3318%3.2%
ROSTRoss Stores Inc$15.602/27/2014$0.17$0.218%1.1%
FFICFlushing Financial Corp$0.602/25/2014$0.13$0.1515%2.9%
ALBAlbemarle Corp$5.202/25/2014$0.24$0.27515%1.7%
XECCimarex Energy Co$10.102/26/2014$0.14$0.1614%0.6%
CBChubb Corp$21.702/27/2014$0.44$0.514%2.3%
KSSKohl’s Corp$12.002/26/2014$0.35$0.3911%2.8%
MENTMentor Graphics Corp$2.502/27/2014$0.045$0.0511%0.9%
SWXSouthwest Gas Corp$2.502/27/2014$0.33$0.36511%2.7%
UNSUNS Energy Corp$2.502/25/2014$0.435$0.4810%3.2%
MJNMead Johnson Nutrition Co$16.402/28/2014$0.34$0.37510%1.7%
RHPRyman Hospitality Properties$2.102/28/2014$0.5$0.5510%5.2%
JWNNordstrom Inc$11.902/26/2014$0.3$0.3310%2.1%
GPSGap Inc/The$19.602/27/2014$0.2$0.2210%2.0%
GLTP.H. Glatfelter Co$1.302/26/2014$0.1$0.1110%1.4%
NATLNational Interstate Corp$0.602/28/2014$0.11$0.129%1.5%
CVACovanta Holding Corp$2.302/26/2014$0.165$0.189%4.0%
STJSt Jude Medical Inc$19.102/24/2014$0.25$0.278%1.6%
GGPGeneral Growth Properties$19.502/26/2014$0.14$0.157%2.7%
ROICRetail Opportunity Investments Corp$1.102/24/2014$0.15$0.167%4.3%
ENHEndurance Specialty Holdings$2.302/27/2014$0.32$0.346%2.6%
TDSTelephone And Data Systems$2.502/26/2014$0.1275$0.1345%2.4%
SFNCSimmons First National Corp$0.602/28/2014$0.21$0.225%2.5%
SEMGSemGroup Corp-Class A$2.902/27/2014$0.21$0.225%1.3%
KMBKimberly-Clark Corp$41.902/25/2014$0.81$0.844%3.0%
SDRLSeadrill Ltd$17.302/25/2014$0.95$0.983%10.6%
BGSB&G Foods Inc$1.602/24/2014$0.33$0.343%4.5%
WRWestar Energy Inc$4.402/26/2014$0.34$0.353%4.1%
NADLNorth Atlantic Drilling Ltd$2.102/25/2014$0.225$0.232%10.9%
MGRCMcGrath RentCorp$0.802/27/2014$0.24$0.2452%3.0%
GEF/BGreif Inc-Cl B$2.502/24/2014$0.62$0.632%4.6%
VNRVanguard Natural Resources$2.302/26/2014$0.2075$0.211%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

TickerNameMarket Cap (Billions)Dividend Declaration DatePrevious DividendLatest Dividend12-Month Dividend Yield
ROYTPacific Coast Oil Trust$0.502/24/2014$0.13396$0.1257412.9%
RGRSturm Ruger & Co Inc$1.202/25/2014$0.58$0.543.3%

 

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

 

Dividend Initiations

TickerNameMarket Cap (Billions)Dividend Declaration DateDividendDividend Yield
EXHExterran Holdings Inc$2.702/25/2014$0.151.5%
STAYExtended Stay America Inc$5.202/26/2014$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

TickerNameTentative Dividend Declaration Date
IGTInternational Game Technology03/04/2014
SLGNSilgan Holdings Inc03/04/2014
QCOMQUALCOMM Inc03/05/2014
AMATApplied Materials Inc03/05/2014
SPLSStaples Inc03/06/2014
GDGeneral Dynamics Corp03/06/2014
DVNDevon Energy Corp03/06/2014
CECECeco Environmental Corp03/06/2014
CLColgate-Palmolive Co03/07/2014
TMKTorchmark Corp03/07/2014

 

Source: Dividends & Income Daily Research, Bloomberg

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