Dividend plays
If your looking for a solid play in the stock market that can perform even with the Fed uncompassionately raising rates, you might want to consider looking towards stocks with attractive dividends. While glancing through Barron's this past weekend, I came across three companies that plan on raising their dividends.
The first company, VF Corp (VFC) @62.24, come June 19th will pay a quarterly dividend of 55 cents a share to holders of record June 7th, a 3.53% yield. Along with being an attractive dividend play, its also a good company. They are the world's number 1 jean maker and ever since their facelift in 2001 (exited underperforming businesses), they greatly reduced their cost structure. Since 2003, revenues rose 24% and earnings per share rose 26%. Gross margins expanded to 41.8% from 37.8% and cash flow rose to $1.3 billion.
The second company, Northrop Grumman (NOC) @ 67.46, while on track to acheive its fourth straight year of double-digit earnings growth, boosted its quarterly common payout by 15% to 30 cents a share. This will be dispursed June 10th to holders on record of May 31. This dividend of the world's number 3 defense contractor will yield 1.80%. Even though January-March profits fell to $358 million, they still surpassed Wall Street's expectations.
The final company, CDW Corp. (CDWC) @ 55.76, after having a series of record quarters hiked their dividend yeild for the third consecutive year by 21% to 52 cents a share from 43 cents previously. Disbursements will begin on June 30th with record date of June 14th. They are a leading provider of over 100,000 computer products to business, government and education with yearly sales of $6.3 billion. Another reason this stock is attractive is because they repurchased about $128 million worth of stock in the first quarter which is a good sign.
One final note on the dividend play, President Bush signed a bill extending reduced tax rates of 15% on capital gains and dividends through 2010 which is promising.
Sources:
Barron's May 22, 2006 edition
The first company, VF Corp (VFC) @62.24, come June 19th will pay a quarterly dividend of 55 cents a share to holders of record June 7th, a 3.53% yield. Along with being an attractive dividend play, its also a good company. They are the world's number 1 jean maker and ever since their facelift in 2001 (exited underperforming businesses), they greatly reduced their cost structure. Since 2003, revenues rose 24% and earnings per share rose 26%. Gross margins expanded to 41.8% from 37.8% and cash flow rose to $1.3 billion.
The second company, Northrop Grumman (NOC) @ 67.46, while on track to acheive its fourth straight year of double-digit earnings growth, boosted its quarterly common payout by 15% to 30 cents a share. This will be dispursed June 10th to holders on record of May 31. This dividend of the world's number 3 defense contractor will yield 1.80%. Even though January-March profits fell to $358 million, they still surpassed Wall Street's expectations.
The final company, CDW Corp. (CDWC) @ 55.76, after having a series of record quarters hiked their dividend yeild for the third consecutive year by 21% to 52 cents a share from 43 cents previously. Disbursements will begin on June 30th with record date of June 14th. They are a leading provider of over 100,000 computer products to business, government and education with yearly sales of $6.3 billion. Another reason this stock is attractive is because they repurchased about $128 million worth of stock in the first quarter which is a good sign.
One final note on the dividend play, President Bush signed a bill extending reduced tax rates of 15% on capital gains and dividends through 2010 which is promising.
Sources:
Barron's May 22, 2006 edition
posted by Stock Administrator @ 4:32 PM
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