3 Equities Declare 5%-Plus Quarterly Dividend Boosts
By: Ned Piplovic,
Three companies announced 5.88% to 21.43% boosts to their quarterly dividends on March 1, 2017, with the earliest ex-dividend date on March 8, 2017.
In addition to the dividend boosts, current share prices of all three companies are at least 25% higher than their respective 52-week lows that occurred in 2016. The companies also have rewarded their stockholders with steady dividend growth. Since 2003, only one cut of the annual dividend occurred between all three companies.
Best Buy Inc. (NYSE:BBY)
Best Buy Inc. is a retailer of technology products, services and solutions in the United States, Canada and Mexico. The company has approximately 1,200 large-format and 400 small-format stores. The company was founded in 1966 and is headquartered in Richfield, Minnesota.
Along with its fourth-quarter results. the company announced a 21.43% dividend bump compared to its previous quarterly payout. The annualized regular dividend payout of $1.36 converts to a 3.1% yield. In addition to its regular quarterly payout, Best Buy paid out a special dividend of $0.51 in 2015 and $0.45 in 2016. The current dividend boost is the fourth consecutive year of increased annual payouts since a dividend cut in 2013, which is the only reduction of the annual payout since the company started paying a dividend in 2003.
The share price lost 8.5% between March and mid-June 2016, when it reached its 52-week low of $28.76. Since June, the price rose almost 72% to reach its 52-week high by December 8, 2016. By the end of December, the share price pulled back 13%. However, the price reversed course in 2017 and has regained a good portion of that loss. The share price closed within 11% of the December high by the end of February 2017.
The share price lost 4.5% on March 1, 2017, on mixed results of better-than-estimated earnings per share, missed sales targets for the fourth quarter of 2016 and weak guidance for 2017. However, at the end of trading on March 2, 2017, the share price was back up to $44.85, which is higher than the close on Feb. 28 and less than 10% short of the 52-week high from December.
Flushing Financial Corp. (NASDAQ:FFIC)
Flushing Financial Corporation is a bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses and governmental units. The company also offers cash management products and operates iGObanking.com. As of February 23, 2016, the company operated 19 banking offices located in Queens, Brooklyn, Manhattan and Nassau County.
The company’s quarterly dividend rose 5.88% from $0.17 to $0.18. That quarterly distribution converts to a $0.72 annual payout and a 2.6% yield. The company increased its annual payout for 12 consecutive years after it started paying a dividend in 1996. Between 2008 and 2013, the company paid a flat dividend, but has returned to increasing its annual payout over the last four years.
In 2016, the company’s share price traded flat in the $19 to $23 range from March through the end of October. However, the price gained 38% since then and closed at $29.35 on March 1, 2017. That price is 8% lower than the 52-week high from January 2017 and 55% higher than the 52-week low that occurred at the end of June 2016.
Silgan Holdings Inc. (NASDAQ:SLGN)
Silgan Holdings Inc. manufactures and sells rigid packaging for shelf-stable food and other consumer goods products worldwide. It operates through three segments: metal containers, closures and plastic containers. The company’s product portfolio contains a variety of steel, aluminum, composite and plastic containers, as well as packaging for a range of food, beverages and consumer goods.
While the annualized payout of $0.72 per share yields only 1.2%, the rising dividend makes this stock an attractive investment. For 2017, the company extended its record of boosting dividends to 13 consecutive years. Since 2004, Silgan Holdings grew its payout by an average of more than 15% annually. Consequently, the 2017 total annual dividend is more than six times higher than the initial payout in 2004.
The share price of Silgan Holdings endured some volatility in 2016 and traded between $47 and $54 between March and the end of the year. After nine months of trading, the price on December 30, 2016, was almost identical to its price in March 2016. However, the share price increased significantly and gained 19% since the beginning of 2017. The share price closed on March 1, 2017, at its all-time high closing price of $60.90.
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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