3 Companies Announce Rising Dividends and Offer Double-Digit Asset Appreciation
By: Ned Piplovic,
Three companies declared dividend boosts between 2% and 3.45% to continue rising-dividend streaks of at least three years each.
In addition to the increased dividend payouts, the current share prices of all three companies are at least 11% higher than their respective 52-week lows. Two companies have their ex-dividend dates on March 8, 2017, while the third company’s ex-dividend date is in May.
Wal-Mart Stores, Inc. (NYSE:WMT)
With annual revenues approaching half a trillion dollars, Wal-Mart is the world’s largest retailer and the largest private employer in the world with more than 2.2 million employees. As of January 2017, Walmart operated more than 11,600 stores in 28 countries.
On February 21, 2017, the company announced a 2% boost to its annual dividend. The current quarterly dividend of $0.51 translates to a $2.04 annual payout and a 2.9% yield. Wal-Mart Stores, Inc. has increased its annual cash dividend every year since it first declared a $0.05 per share annual dividend in March 1974.
The next pay date is April 8, 2017, with a March, 8, 2017, ex-dividend date. The company also announced its dividend pay dates for the reminder of the year – June 5, 2017, September 5, 2017, and January 2, 2018.
The share price rose 8.2% from $64.66 on February 22, 2016, to almost $70 by the end of April 2016. Over the first two weeks in May, the share price plunged 10% and reached its 52-week low of $62.72 on May 18, 2016. However, the price reversed course immediately and rose 20% by August 18, 2016, when it reached its 52-week high. By late January 2017, WMT’s share price was at the same level as during February 2016. However, since January, the company’s share price rose to reach $71.45 at the end of trading on February 21, 2017. The current price level is just 5% below the year’s peak price and 14% above its 52-weel low from May 2016.
Genuine Parts Company (NYSE:GPC)
Genuine Parts Company distributes automotive replacement parts through its network of 1,100 NAPA Auto Parts stores. Additionally, the company distributes industrial replacement parts, office furniture, general office and school supplies, technology products, wires and cables, connectivity solutions, insulating and conductive materials, and specialty coated materials to original equipment manufacturers.
The company’s current quarterly payout of $0.675 is 2.7% higher than the previous amount paid in January 2017. The annualized payout yields 2.7%. Since GPC started paying a dividend in 1948, the company has increased its annual payout every year.
In February and March 2016, the company’s share price rose 10% from $91 to $100. However, excluding a 5% spike in July and a 10% drop in late October, the share price generally traded between $95 and $100 for the rest of the year. As of the market’s close on February 21, 2017, the share price was $97.67, which is 7.8% below the July 52-week high and 13% higher than the 52-week low on November 9, 2016.
Autoliv, Inc. (NYSE:ALV)
Autoliv, Inc., the company that pioneered the two-point automotive seatbelt in 1956, develops, manufactures and supplies passive and active automotive safety systems to the automotive industry. The company is the largest supplier of automotive airbags. Its 40% share of the global airbag market is twice the share of the combined shares of Autoliv’s next four competitors.
The current quarterly dividend of $0.60 is a 3.4% boost over the previous payout. Its annualized dividend of $2.4 converts to a 2.3% dividend. After a significant dividend cut in 2009, this is ALV’s seventh consecutive year of enhanced dividend payouts. The cut in 2009 interrupted a previous six-year rising dividend streak. Even with the 2009 dividend cut, Autoliv managed to grow its annual dividend at an average annual rate of 12.7% since 1997.
The company’s share price rose 18% between February 22, 2016, and its 52-week high on May 11, 2016. However, the price lost 26% between the May peak and its 52-week low of $93.31 on November 9, 2016. After bottoming out, the share price recovered 20% and reached $116.39 on February 1, 2017, only to drop 11.5% during the following two days of trading. After gaining back 2.2% since February 3, 2017, Autoliv’s share price closed on February 21, 2017, at $105.62, which is 16.4% lower than the May peak and 13% higher than the 52-week low from November.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.