5 Securities Boost Dividends by Double-Digits
By: Ned Piplovic,
A security that offers a 5% gross return on investment (ROI) in two months is a great opportunity, especially if it just declared a dividend on February 7, 2017.
Out of 17 securities that boosted their dividends on that date, five investments stood out by raising their payouts 10% or more. This write-up and the table below offers investors an introduction to each of those equities.
One company declared a special dividend that produced a 5% return in just 61 days. That length of time is the minimum holding requirement for an equity to be eligible for a reduced capital gains tax rate of 15%. While the ex-dividend date is approaching quickly, there still is time to take advantage of this opportunity.
Logansport Financial Corp. (OTCBB:LOGN)
Logansport Financial Corp., a parent company of Logansport Savings Bank, offers business banking, as well as personal banking and lending.
On February 7, 2017, the company declared a $2.00 per share special dividend to be paid on March 17 to all shareholders of record before February 15, 2017. The company has been paying a dividend since 1995 and has never lowered its annual payout. Its regular quarterly dividend of $0.28 translates to a $1.12 annual payout and a 2.9% yield.
The company’s share price remained relatively steady over the last year and fluctuated between $38.25 and $40.00 until February 7, 2017, when the news of a special dividend drove the share price 3.8% higher in a single day from $39.00 to $40.50.
Gilead Sciences, Inc. (NASDAQ:GILD)
Gilead Sciences is a research-based biopharmaceutical company that discovers, develops and commercializes medicines and medical treatments. The company’s portfolio of current products and products in its development pipeline includes treatments for HIV/AIDS, liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions.
On February 7, 2017, the company announced a quarterly dividend boost of 10.6% over last quarter’s payout. The current annual dividend of $2.08 converts to a 2.3% yield. Compared to the 2016 total annual payout of $1.84, the total dividend for 2017 is 13% higher.
While the company rewarded its shareholders with a hefty dividend payout bump, the share price did not fare as well in 2016. The share price rose 20% between February 2016 and a 52-week high of $103.10 on April 26, 2016. After the April peak, the company’s share price declined steadily for 8 months and reached the current 52-week low on January 24, 2017. While the price is still almost 30% lower than the April peak, the share price showed signs of recovery since the January low. Between the recent price low on January 24, 2017, and February 7, 2017, the share price climbed to $73.13, which is 5% higher than the 52-week low.
Midland States Bancorp, Inc. (NASDAQ:MSBI)
Midland States Bancorp operates as a financial holding company for Midland States Bank. The company provides banking and financial services to individuals, businesses, municipalities and other entities through its network of 81 locations in the United States.
In August 2016, the company started paying a dividend and distributed two payments of $0.18 last year. Midland States Bancorp’s first payout declared in 2017 is $0.20, which is 11% higher than the 2016 quarterly payments. The 2017 annualized dividend of $0.80 converts to a 2.4% yield.
Between February and the end of December 2016, the share price rose 60% to reach the 52-week high of $33.45. Year-to-date in 2017, the share price dropped 2.4% from the December peak and closed at $33.11 on February 7, 2017.
IQ Enhanced Core Bond US ETF (NASDAQ:AGGE)
The IQ Enhanced Core Bond US ETF tracks the price and yield performance of its underlying index — the IQ Enhanced Core Bond U.S. Index. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its underlying index.
The fund started paying a dividend in June 2016. For the remainder of 2016, its payout fluctuated between $0.0326 and $0.04. Currently, the monthly payout of $0.0371 is 14.5% higher than the dividend paid in December 2016. The annualized dividend yields 2.3%
The share price rose 14% between February and June 2016 when it reached its 52-week high of $22.70. Since June 2016, the fund’s share price gave back all of those gains and closed on February 7, 2017, at $19.53, which is 14% below the year’s peak and only 1% higher than the 52-week low it reached on August 3, 2016.
The ex-dividend date for this fund is on February 8, 2017. However, the dividend is paid monthly. The next payout is just a few weeks away.
Intercontinental Exchange Inc. (NYSE:ICE)
Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel and Canada.
The company declared its dividend for the entire 2017 in advance. The $0.20 payment per share is scheduled to be paid at the end of each quarter in March, June, September and December. The annualized payout of $0.80 converts to a 1.4% yield and is on track to be the fourth consecutive annual dividend boost. Since 2013, the dividend rose at an average rate of 57% annually, which resulted in a six-fold payout increase since the company started paying a dividend four years ago.
The company’s share price rose 32% since February 2016 and reached $59.95 on February 7, 2017, which is its highest closing price of the past year.
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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.