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Extra Space Storage, Inc. (NYSE:EXR) currently offers its shareholders a 3.6% dividend yield and has a record of boosting its annual dividend payout amount for nearly a decade.

The company’s current yield outperformed the company’s five-year dividend yield average. Additionally, the REIT’s  dividend payout ratio has declined from an average of 105% over the past five years to the current 80% level. The lower payout ratio indicates that the company’s financials should be sufficient to support future dividend distributions and annual payout hikes. Additionally, the technical indicators suggest that the share price might have more room on the upside to grow.

Therefore, investors interested in equities with balanced total returns from asset appreciation and dividend payouts, should conduct their own due diligence and upon confirmation of this REIT’s potential consider taking a long position. The company will pay its next dividend on December 31, 2018, to all shareholders of record prior to the December 13, 2018 ex-dividend date.

Dividend Yield

Extra Space Storage, Inc(NYSE:EXR)

Based in Salt Lake City, Utah, Extra Space Storage, Inc. operates as a self-administered and self-managed real estate investment trust (REIT). The trust acquires, develops and manages self-storage facilities. While founded in 1977, Extra Space Storage has been traded publicly as a REIT on the New York Stock Exchange since 2004. As of November 2018, Extra Space Storage owned approximately 1,600 facilities, comprising more than 1 million individual storage units and with more than 120 million square feet of rentable space in 39 states, Washington, D.C., and Puerto Rico. In addition to its own facilities, the company manages approximately 75 additional facilities, which are owned by franchisees or third parties. In terms of number of locations and available rentable space, Extra Space Storage is currently the second-largest operator of self-storage facilities in the United States. Extra Space Storage’s positive financial performance – especially in 2015 – lead to the company meeting all the necessary requirements to be selected for inclusion in the S&P 500 Index in 2016.

The trust’s current quarterly dividend distribution of $0.86 is 10.3% above the $0.78 payout amount from the same period last year. This new quarterly amount corresponds to a $3.44 annual distribution and a 3.6% forward dividend yield, which is 1.4% above the REIT’s own 3.5% average dividend yield over the past five years.

In addition to outperforming the company’s own five-year average, the current 3.6% yield is in close range to the 3.58% average dividend yield of all the companies in the Industrial REITs industry segment and exceeds the 3.19% simple average of the overall Financials sector by more than 11%.

Since its formation in 2004, the REIT has hiked its annual dividend payout 12 out of the 14 years, or more than 85% of the time. The only two missed annual hikes were in 2006 when the REIT paid the same $0.91 annual amount as it did in the prior year and 2009 when the total annual dividend amount declined 62% in the aftermath of the 2008 financial crisis. However, the company has enhanced its total annual dividend distribution amount more than nine-fold since the start of the current streak of consecutive annual hikes in 2010. This level of enhancement is equivalent to an average annual growth rate of nearly 28% per year over the past nine years.

After a relatively steady uptrend that lasted more than a year, the company’s share price declined more than 9% at the onset of the trailing 12-month period and reached its 52-week low of $ 77.56 on February 8, 2018. After that small correction, the share price reversed direction and gained more than 30% before peaking at its 52-week low of $100.96 on June 26, 2018.

However, after peaking in late June, the share price surrendered all its gains since the beginning of the trailing 12-month period and fell more than 16% by early October 2018. Following another trend reversal, the share price regained 75% of its losses and rose 14.5% to close on December 4, 2018 at $96.90. This closing price was 13.4% higher than one year earlier, nearly 25% above the February low and almost 140% higher than it was five years ago.

The combined benefit of the rising dividend income and asset appreciation rewarded investors with a total return of more than 19% just over the past 12 months. A 25% share price drop in the second half of 2016 limited the total return over the past three years to just 24%. However, long-term investors enjoyed a total return in excess of 165% over the past five years.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

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Ned-Piplovic

 

 

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.


 

After seven consecutive years of annual dividend hikes, Sotherly Hotels, Inc. (NASDAQ:SOHO) currently offeres its shareholders a 7% dividend yield and a moderately steady asset appreciation.

In the aftermath of the financial crisis, the company nearly eliminated its dividend payouts at the beginning of 2009. Sotherly Hotels reduced its quarterly dividend from $0.17 in the fourth quarter of 2008 to a nominal $0.01 amount in 2009. Additionally, the company distributed just two dividend installments in 2009, none in 2010 and only one distribution in 2011. However, the company resumed its dividend distributions in 2012 and has raised the total annual payout every year since then.

In addition to having negative effect on the dividend payouts, the 2008 financial crisis affected the company’s share price as well. The share price declined from an all-time high of almost $11 in mid-2007 to approximately $0.90 by early February 2009. However, despite a slight increase in volatility and a correction of nearly 40% during 2015 and 2016, the share price has advanced seven-fold since February 2009 and continues to trend higher over the long term.

The share price suffered some losses with the overall market pullback that starter in early October 2018 but is showing signs of potential trend reversal. The 50-day moving average (MA) has been declining because of the recent downtrend. However, the 50-day average is still above the 200-day MA and the share price continues to trade around the same levels.

Since the beginning of 2017 the share price has been fluctuating with moderate volatility but continues to maintain its overall growing trend. While the volatility still exists, the current share price is still more than 5% below the analysts’ lowest target price and almost 11% lower than the analysts’ target price average.

Sotherly Hotels will pay the next round of dividends on the company’s January 11, 2019, pay date to all its shareholders of record prior to the December 13, 2018,  ex-dividend date.

Dividend Yield

Sotherly Hotels, Inc. (NASDAQ:SOHO)

Headquartered in Williamsburg, Virginia and organized in 2004, Sotherly Hotels Inc. is an equity real estate investment trust (REIT). The trust focuses on acquisition, renovation and upbranding of upscale, full-service hotels in the southern United States. Currently, the REITs portfolio consists of 12 hotels with more than 3,000 rooms and approximately 160,000 square feet of meeting space. These hotels are independently owned and operated by hotel brands, including Hilton Worldwide, InterContinental Hotels Group, and Starwood Hotels and Resorts. The company’s strategic plan is to add another eight hotels in the Southeast region over the next several years.

Following an 11% pullback at the beginning of the trailing 12-month period, the company hit its 52-week low of $5.95 on February 21, 2018. After bottoming out in late February, the share price gained nearly 26% before peaking at its 52-week high of $7.48 on September 10, 2018. Since the peak in early September, the share price gave back some of those gains and closed on December 3, 2018, at $6.95. This closing price was 3.4% higher than 12 months earlier nearly 17% above the February low and 25% higher than it was five years ago.

In addition to raising its annual dividend for the past seven consecutive years, the company boosted its dividend distribution amount in 18 of the last 28 quarters. The current $0.125 dividend is 13.6% higher than the $0.11 payout from the same period last year. This new quarterly payout converts to a $0.50 annualized distribution and a 7.2% forward dividend yield.

The company can claim a 25-fold annual dividend increase and a 58% annual growth rate over the actual $0.02 annual dividend from 2011. However, a better comparison would be with 2012 – the first full year of dividend payouts after the 2008 crisis. Compared to the $0.09 annual dividend in 2012, the company’s current annual payout is 450% higher, which corresponds to an average annual growth rate of 33%. In addition to exceeding its 5.3% dividend yield average over the past five years by 35%, the company’s current 7.2% dividend yield also is more than 130% above the 3.11% average yield of the entire Financials sector, more than double the 3.41% of all the peers in the Hotels & Motels REITs industry segment and nearly 30% above the 5.55% simple average dividend yield of the segment’s only dividend-paying companies.

The company’s rising dividends and a moderate assets appreciation rewarded investors with an 11.5% total return over the past 12 months. The three-year total return is 37% and the five-year total return came in at 62%.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


Ned-Piplovic

 

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.


 

HP, Inc. (NYSE:HPQ) – the computer hardware and peripherals manufacturer formerly known as the Hewlett-Packard Company – will reward its shareholders by boosting its upcoming quarterly dividend payout 15%.

Following a 35% annual dividend cut in 2016, HP, Inc. has enhanced its total annualized dividend payout nearly 30% for the three subsequent years. This level of growth converts to an average annual growth rate of nearly 9% per year. The company’s only other dividend cut in the past two decades occurred in 2011. After nearly tripling its total annual dividend payout between 1992 and 1998, the company distributed a flat $0.32 dividend through 2009 before beginning to raise its annual dividend payout again – excluding the aforementioned cuts in 2011 and 2016.

Including the inherited history of Hewlett-Packard, the company’s share price had several major selloffs but has moved up with relative consistency and with only one significant pullback since 2012. HP’s share price quadrupled since late 2012 and grew nearly 150% over the past two years.

While the rising share price suppressed the dividend yield growth, the combined benefit of rising dividend payouts and reliable asset appreciation nearly doubled the shareholders investment over the past three years and delivered a double-digit percentage total return over the past 12 months.

HP, Inc. will distribute its next dividend on company’s January 2, 2019, pay date to all its shareholders of record prior to the December 12, 2018 ex-dividend date.

dividend payout

HP, Inc.(NYSE:HPQ)

Headquartered in Palo Alto, California and founded in 1939 as the Hewlett-Packard Company, HP, Inc. provides consumer and business products, technologies, software and services. HP, Inc. was the legal entity that retained the old company’s personal computer and printer businesses during a split in 2015. The Hewlett Packard Enterprise Company (NYSE:HPE) retained the technology and rights to the enterprise information segment, which comprises enterprise networking, storage and server solutions. HP Inc. operates through two business segments – Personal Systems and Printing. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories. Additionally, this segment offers software, support and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions and services. This segment also offers printing and scanning devices, including 3D printing solutions.

The company will boost its quarterly dividend payout 15% from $0.1393 per share in the previous period to the current quarterly dividend distribution of $0.1602. this new dividend distribution amount corresponds to a $0.6408 annualized payout and currently yields 2.7%. The current yield is nearly 150% higher than the 1.09% average yield of the overall Technology sector. Additionally, the company’s 2.7% yield is also nearly 40% above the 1.92% simple average yield of all the HP’s peers in the Diversified Computer Systems industry segment.

In addition to a 9% dividend payout growth rate over the past three years, the company doubled the total annual dividend amount over the past decade, which still is equivalent to a 7.2% growth rate since 2009 despite two dividend cuts.

The share price started the trailing 12 months with a 15% gain but lost all those gains and more during the overall market pullback in early 2018 – during the last week of January and first week of February. After dipping to its 52-week low of $19.92 on February 8, 2018, the share price recovered those losses over the subsequent 30 days and continued to rise while battling some volatility. Just before the beginning of another market selloff in early October, the share price reached its 52-week high of $26.42 on October 4, 2018. After the early-October peak, the share price pulled back slightly along with the overall market and closed on December 3, 2018 at $23.95. This closing price was almost 10% below the peak from early October. However, that closing price was also 13.6% higher than it was one year earlier, more than 20% above the February low and nearly double the price from five years ago.

As already indicated, the capital gains and the dividend payouts income distributions combined for a double-digit percentage total return of 16.3% over the past year. While the 50% price pullback in 2015 limited the five-year total return to just 103.4%, the shareholders nearly doubled their return on investment over the past three years with a total return of 96%.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


Ned-Piplovic

 

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.


 

The dividend growth model is just one of many analytic strategies devised by financial experts and investors to navigate thousands of available investment options and select the individual equities that are the best fit for their specific portfolio strategy.

The specific purpose of the dividend growth model valuation is to estimate the fair value of an equity. Once this fair value is calculated, investors can compare the fair value with the current share or unit price to determine whether a particular equity is overvalued or undervalued. Based on this comparison, investors can decide which equities to buy and sell to optimize their portfolio’s total returns.

For the purpose of dividend growth model calculation, we make assumption on the rate of future growth of dividend distributions. These dividend distributions can rise at  constant growth rates in perpetuity or at variable rates for any given period under consideration.

The specific formula for the dividend growth model calculates the fair value price of an equity’s share or unit in relation to the current dividend distribution amount per share, as well as projected dividend growth rate and the required rate of return. While the required rate of return (RRR) has different interpretation for different uses, in this case, the minimum rate of return denotes the least amount of return on investment that an investor would accept for taking a position in a particular equity.

Generally, the required rate of return measures the minimum return that investors desire for the level of risk associated with a particular investment. Corporate finance uses the required rate of return measure to identify profitable projects and corporate investments. Additionally, for equity valuation, the required rate of return is equivalent to the weighted average of cost of capital.

For determining equity valuation under the dividend growth model, the formula is as follows:

dividend growth model

Where:

P = fair value price per share of the equity

D = expected dividend per share one year from the present time

g = expected dividend growth rate

k = required rate of return

The assumption in the formula above is that g is constant, i.e. that the dividend distributions grow at a constant rate, which is one of the formula’s shortcomings. However, the formula still provides an easy method to determine whether an equity is undervalued or overvalued in the short term.

Nevertheless, the formula can easily be adapted and used in more complex models that allow for multi-year analysis with variable dividend distribution growth rates for each year. To better illustrate the formula and its application, here is an example.

 

Steady growth rate example

Let us assume that ABC Corporation’s stock currently trades at $10 per share. The company’s current quarterly dividend distribution is $0.25, which corresponds to an expected total annual dividend payout of $1.00 for the upcoming 12-month period. Furthermore, the ABC Corporation has been increasing its total annual dividend payout amount by an average of 4% per year over the past decades. Therefore, for the purpose of this calculation, it is relatively safe to assume that the company might continue this growth rate in the upcoming year. Based on opportunity cost of investing in alternative investment types, let us assume that to allocate our funds into the shares of ABC Corporation we expect a return of no less than 12%.

Plugging the information above into the dividend growth model formula,

dividend growth model

we get:

dividend growth model

Based on the assumptions listed above, ABC Corporation’s current share price is undervalued and has 25% room on the upside before it reaches its current fair value. Therefore, the dividend growth model suggests that taking a long position in the ABC Corporation’s stock might be a good investment idea. The key word is “might”, because this calculation only provides a single data point in the overall equity evaluation and requires additional analysis.

In a different scenario, let us assume that the growth rate and the required rate of return remain the same at 4% and 12%, respectively. However, the quarterly dividend distribution for the next year is now $0.18, which converts to a $0.72 expected cumulative dividend payout for the upcoming year.

In this case the dividend growth model calculation yields a different result,

dividend growth model

The $9 calculated fair value of the ABC Corporation’s share price is 10% lower than its current $10 trading price. Therefore, under these conditions, the share is overvalued, and investors should consider looking elsewhere for their minimum required returns.

 

Variable growth rate example

To expand the model beyond the one-year time horizon, investors can use a multi-year approach. Let us assume that, based on historical information, we estimate that the total annual dividend should grow at 5% in the second year, 6% in the third year, 7% in the fourth year and then continue to grow at 5% per year permanently. Furthermore, we assume the $1.00 annual dividend payout for the first year and a 12% required rate of return.

First, we calculate the expected annual dividend payouts for the first four years with variable dividend growth rates.

Year 1: $1.00

Year 2: $1.00 + 5% = $1.05

Year 3: $1.05 + 6% = $1.11

Year 4: $1.11 + 7% = $1.19

Perpetuity: $1.19 + 5% = $1.25

Next step is to calculate the present value (PV) of the expected future dividend payments using the formula:

dividend growth model

Where,

n = year number

k = required rate of return

 

Therefore, we have,

PV Year 1: $0.89

PV Year 2: $0.84

PV Year 3: $0.79

PV Year 4: $0.76

 

The fair value of the dividends for Perpetuity is calculated using the dividend PV for year 4 in the standard dividend growth formula.

 

Therefore,

$0.76 / (12% – 5%) = $17.86

 

From the above value, we calculate the present value of the expected dividends over the next four years as:

$17.86 / (1.12)5 = $10.13.

 

Finally, we can calculate the fair value of the stock as:

dividend growth model

Dividend PV Year n

or,

$0.89 + $0.84 + $0.79 + $0.74 + $10.13 = $13.41

Since the current fair value of $13.41 is above the current $10 trading price, the stock is undervalued.

This entire multi-year calculation can be represented in the table below.

dividend growth model

 

Practical application

Investors must conduct more than just a one-year dividend analysis to identify dividend-paying equities with potential multi-year returns. While the dividend growth model is a simple and fast way to get general indications about projected value of equity share prices, the model also has a few shortcomings.

Dividends very rarely increase at a constant rate for extended periods. Additionally, forecasting accurate growth rates few years in the future can be difficult to accomplish. Therefore, the dividend growth model results change constantly, and the calculations must be repeated as well.

Despite its shortcomings, the dividend growth model does offer a good starting point for equity selection analysis. However, investors must evaluate additional measures in conjunction with the dividend growth model to generate a more extensive set of data for evaluating potential investments.

In addition to dividend growth data, sales growth, profit margin trends, earnings per share (EPS) increases, as well as dividend payout ratio changes are indicators that investors must consider before making a final investment selection. Furthermore, investors must continuously evaluate potential investments through the dividend growth model to compensate for changing input values and personal requirements.

For further information and articles on dividend investing in general and dividend-paying equities recommendations, go to www.DividendInvestor.com. Additionally, you can start your own research for dividend-paying stocks that fit your investment portfolio strategy by taking a quick video tour of our custom tools suite, before diving into detailed market analysis with our recently revised and upgraded analytical tools.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


 

Ned-Piplovic

 

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.


 

Income investors generally seek dividend-paying equities that offer increasing dividend payouts every year.

The five equities below are scheduled to go ex-dividend on December 14, 2018 and all have declared rising dividend payouts for their upcoming pay dates, which range between December 31, 2018 and January 15, 2019. The featured dividend stocks with rising payouts are:

 

Merck & Co, Inc. (NYSE:MRK)

Dividend Payouts

The company’s current $0.55 quarterly dividend is 14.6% above the $0.48 payout from the previous period, corresponding to a $2.20 annualized amount and yielding 2.8%. Merck’s current yield is more than four times higher than the 0.65% average dividend yield of the overall Health Care sector. Additionally, the current yield is 53% above the 1.82% simple average of the Major Drug Manufacturers industry segment, as well as 7.2% higher than the 2.6% average yield of the segment’s only dividend-paying companies. The company enhanced its total annual dividend amount by 45% over the past seven consecutive years, which is equivalent to a 5.4% average annual growth rate.

After a minor pullback to a 52-week low of $53.63 in early April 2018, the share price advanced nearly 50% before reaching its 52-week high of $79.34 on November 30, 2018. The $79.22 closing price on December 3, 2018, was 41% higher than one year earlier, 47.7% above the April low and 64% higher than it was five years ago. The dividend growth and asset appreciation combined to reward shareholders with total returns of 48%, 61% and 79% over the past one, three and five years, respectively.

 

DTE Energy Company (NYSE:DTE)

Dividend Payouts

The company’s upcoming $0.945 quarterly distribution represents a 7.1% hike above the $0.8825 payout from the previous period, equaling a $3.78 annualized payout and yielding 3.2%. Over the past nine consecutive years, the company nearly tripled its total annual dividend amount by hiking its annual payouts at an average growth rate of 6.6% per year.

After declining 18% between December 2017 and the 52-week low of $94.70 on June 11, 2018, the share price reversed direction and started rising again. After the June low, the share price gained 26.7% before reaching its new all-time high of $119.95 on November 13, 2018. The December 3, 2018, closing price of $119.16 was 3.1% higher than one year earlier, 25.8% above the June low and nearly triple the price from five years ago. The total returns over the past one, three and five years were 7.5%, 62% and 104%, respectively.

 

Iron Mountain, Inc. (NYSE:IRM)

Dividend Payouts

The company’s share price has experienced more volatility lately than during the 2008 financial crisis. However, the long-term share-price trend is to advance higher. Therefore, some investors might view the current pullback as a buying opportunity. The current share price has more than 10% room on the upside before it reaches the $39.40 analysts’ average target. After reaching its 52-week low of $30.48 on October 26, 2018, the share price has gained more than 11% to close on December 3, 2018, at $33.90. This closing price is 24% higher than it was five years earlier.

Iron Mountain’s current $0.611 quarterly amount is 4% higher than the $0.5875 distribution from the previous quarter. The new quarterly payout converts to a $2.444 annualized payout and yields 7.2%. This yield is nearly three-fold above the 1.93% average yield of the entire Services sector. Additionally, IRM’s current yield is also 365% higher than the 1.55% simple average yield of all the companies in the Business Services industry segment, as well as triple the 2.45% average yield of the segment’s only dividend-paying companies.

Since initiating dividend payouts in 2010, Iron Mountain enhanced its total annual amount 840%, which is equivalent to an average annual growth rate of more than 32%. The share price pullback imposed a total loss of nearly 10% over the past 12 months. However, if the share price follows trend and continues rising, shareholders might be back to enjoying robust gains like the 46% total return over the past three years or the 71% total return over the past five years.

 

Templeton Global Income Fund (NYSE:GIM)

Dividend Payouts

As of October 31, 2018, the Templeton Global Income Fund (NYSE:GIM) focused on global fixed income and had nearly $1 billion in total assets distributed across its holdings. Fixed income securities comprise more than 67% of the fund’s assets and the remainder sits in cash and cash equivalents. The fund’s highest exposure is to equities in Brazil (12.8%) and Mexico (12.1%). Along with equities in India (8.2%), Indonesia (7.5%) and the United States (6.5%), these top five countries account for nearly half of the fund’s assets.

The fund’s unit price has experienced several large swings since its inception in March 1988. With the current price near its all-time low from 2000, the high probability is that the unit price could extend its current uptrend after gaining 2.2% from its 52-week low of $5.99 on August 31, 2018 to close at December 3, 2018 at $6.12.

The fund’s total dividend payouts were insufficient to overcome the unit price decline and delivered a marginal total loss of 0.8% over the past 12 months. While the total five-year return is only slightly better at 1%, the total return over the past three years was nearly 10%.

The fund’s current $0.0378 monthly distribution is nearly 22% higher than the $0.031 payout from the previous month. This upcoming payout amount is also the second highest of all monthly dividend payouts since August 2012 and corresponds to a total annual payout of $0.4536, which converts to a 7.4% forward yield. This yield is 137% higher than the 3.12% average yield of the overall Financials sector. Additionally, the fund’s current 7.4% yield is nearly double the 3.85% average yield of all the companies in the Debt Closed-End Funds industry segment, as well as 20% above the 6.17% simple average of the fund’s only dividend-paying equities.

 

Saratoga Investment Corporation (NYSE:SAR)

Dividend Payouts

The company’s share price faced a fair amount of volatility over the past year. After an initial decline between December 2017 and mid-February 2018, the share price reversed direction and then spiked to its highest level in nearly a decade by late June. However, after that spike, the share price surrendered all its gains and ended the trailing 12 months with a marginal gain.

The share price bottomed out at $19.90 in mid-February and then gained nearly 40% before reaching the $27.74 high on June 26, 2018. After giving up all those gains, the share price closed on December 3, 2018, at $22.83. This closing price was just 1.5% higher than one year earlier, 15.3% above the February low and nearly 50% higher than it was five years ago.

The company has hiked its dividend payouts over the past 17 consecutive quarters. The upcoming $0.53 quarterly amount is nearly 2% above the $0.52 payout from the previous period and 8.2% higher than the $0.49 quarterly payout from the last period 2017. The streak of rising dividend payouts for 17 consecutive quarters nearly tripled the company’s total annual dividend payout, which corresponds to an average growth rate of 6.6% per quarter, or 31% per year.

Despite the flat share price, the company delivered to its shareholders a total return of more than 10% over the past year, as well as total returns of 81% and 96% over the past three and five years, respectively.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


 

Ned-Piplovic

 

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.


 

The PPL Corporation (NYSE:PPL) – a electricity distribution utility company – offers its shareholders currently a 5.3% dividend yield, and the company has hiked its annual dividend payout for the past 19 consecutive years.

During the growth market over the past couple of years, many investors have divested away from utility stocks into faster-growing technology and financial stocks. However, the recent market pullback and volatility makes utility stocks attractive again. The share prices of many utility stocks declined in early 2018. However, those share price pullbacks might be an opportunity to take a long position in a utility stock – especially in a company like the PPL Corporation that offers an above-average dividend yield with a steady annual payment growth history. The steady flow of dividend distributions allows investors in the PPL stock to collect significant dividend income while waiting on the share price to recover fully.

PPL’s share price declined more than 30% between the beginning of the trailing 12 months and its 52-week low in June 2018. However, the share price has recovered almost half of its losses since the June low. Furthermore, the share price’s 50-day moving average (MA) crossed above the 200-day MA in a bullish manner in mid-September 2018 and has continued to widen the gap. Additionally, the share price rose above both moving averages at the beginning of October  and has remained above both averages, except for one trading session in late October 2018.

Investors who do their own analysis and conclude that the share price might continue its current uptrend, should consider taking a long position in the PPL stock. To take advantage of the above-average dividend payout streak and claim eligibility for the pay date on January 2, 2019, investors must buy shares prior to the December 7, 2018, ex-dividend date.

Dividend Yield

PPL Corporation (NYSE:PPL)

Headquartered in Allentown, Pennsylvania and founded in 1920, the PPL Corporation is a utility holding company that delivers electricity in the United States and the United Kingdom. The company provides utility services to more than 10 million customers through three business segments – U.K. Regulated, Kentucky Regulated and Pennsylvania Regulated. In addition to providing electricity distribution services to retail customers, PPL also provides wholesale electricity to 10 municipalities in Kentucky. As of September 2018, the company’s power grid covered more than 36,000 square miles of service territory on two continents. The infrastructure included approximately 1,000 substations and nearly 220,000 miles of electric lines. For fiscal 2017, the company generated $1.13 billion in net income on $7.5 billion of operating revenues. For the third quarter of 2018, the company delivered earnings per share of $0.59, which was 5% higher than the $0.56 amount from the same period last year. Based on the positive results through the third quarter of 2018, the company revised its earnings estimate for the entire year from $2.33 to $2.35. In addition to the traditional utility distribution, PPL is the parent company of Safari Energy, LLC – one of the leading providers of solar power solutions for commercial customers in the U.S.

After the 30% decline since the onset of the trailing 12-month period, the share price reached its 52-week low of $25.61 on June 7, 2017, before reversing direction. Since bottoming out in early June 2018. The share price recovered nearly half of those losses and closed on November 28, 2018 at $30.84. While this closing price was still nearly 16% below its peak from one year earlier, it was 20.4% higher than the June low.

PPL’s current $0.41 quarterly dividend payout is 3.8% higher than the $0.395 amount from the same period last year. This new quarterly dividend corresponds to a $1.64 annual dividend payout and a 5.3% forward dividend yield, which is 6.4% higher than the company’s own 5.0% average yield over the past five years.

In addition to outperforming its own dividend yield average over the past five years, the company’s current 5.3% yield is 125% above the 2.36% average dividend yield of the entire Utilities sector. Furthermore, PPL’s current dividend yield is also nearly double the 2.67% simple average yield of the Electric Utilities industry segment, as well as 27.5% higher than the 4.17% average yield of the segment’s only dividend paying companies.

Over the past 19 years of consecutive annual hikes, PPL enhanced its total annual dividend payout nearly 230%, which is equivalent to an average growth rate of 6.5% per year.

The strong dividend payout over the past year offset some of the 16% share price decline to limit the total loss to less than 10% for the trailing 12 months. However, the long-term shareholders enjoyed a 7% total return over the past three years and a total return of nearly 36% over the past five years.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


 

Ned-Piplovic

 

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.


 

While General Motors’ (NYSE: GM) share price declined more the 30% before hitting the 52-week low in October 2018, the company’s dividend yield of 4% has remained above the average yield of its peers.

The company’s recent share price decline left some investors doubting whether the 4% dividend yield is enough to justify investment into the GM’s stock. However, the company’s share price has advanced more than 20% over the past 30 days. Furthermore, nearly a quarter of that growth occurred on November 26, 2018, when the share price surged nearly 5% in a single trading session. This surge came after the GM’s CEO Mary Barra announced that the company will close several production facilities in North America and lay-off approximately 14,000 employees. These moves are part of the company’s restructuring away from traditional passenger vehicle production to place a higher focus on manufacturing trucks, sport utility vehicles (SUVs), electric cars and autonomous vehicles.

The production strategy change is in response to a shift in customer demand. Just five years ago, approximately half of new vehicles sold in the U.S. automotive market were trucks and SUVs. However, the share of new trucks and SUVs in the U.S. marked continued to rise since then to reach 65% in October 2018 and is expected to continue rising. The current reorganization plans are just the latest tactic in GM’s attempt to reinvent itself after going through bankruptcy proceedings nearly a decade ago.

General Motors suffered significant market and financial losses in the first decade of the new millennium and filed for bankruptcy on June 1, 2009. Because the U.S. Treasury invested more than $50 billion in the company’s operations and additional $17 billion in GM’s former financing company, GM emerged from the proceedings just 40 days after its initial bankruptcy filing. However, while GM emerged from the bankruptcy as a new entity and in a good financial position, the U.S. Treasury suffered a total loss of nearly $12 billion on its “investment.”

After reemerging from the bankruptcy proceedings, the company also resumed distributing dividends to its shareholders in the first quarter of 2014, which was nearly a century after GM paid its initial dividend distribution in 1915. GM boosted its annual dividend payout for the first two consecutive years and then continued to distribute a flat $1.52 annualized payout since 2016. General Motors has scheduled its next dividend distribution for December 20, 2018. On that date, the company will pay its next round of dividends to all its shareholders of record prior to the December 6, 2018 ex-dividend date.

Dividend Yield

General Motors Company (NYSE:GM)

Based in Detroit, Michigan and originally founded in 1897, the General Motors Company designs, manufactures and sells cars, trucks and automobile parts. The company operates through the GM North America, GM International and GM Financial business segments and currently markets its vehicles under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang and Wuling brand names. The company’s sales in the U.S. were down 1.2% the first three quarters of 2018 and also 11% lower  for only the third quarter compared to the same period last year. However, the company’s Average Transaction Price (ATP) rose nearly 2% – approximately $700 – to a record level of $35,974 per vehicle.

General Motors’ share price started the trailing 12-month period from its 52-week high of $44.92 on November 28, 2017 and declined from that mark nearly 31% before hitting its 52-week low of $30.56 on October 24, 2018. After bottoming out in late October, the share price regained some of those losses and closed on November 28, 2018 at $ 36.69. While still nearly 17% below its level from one year earlier, the current price is more than 20% above its 52-week low from late October 2018.

The current $0.38 quarterly dividend corresponds to a $1.52 annualized dividend amount and a 4.1% forward dividend yield. This current dividend yield is nearly 12% higher than the company’s own 3.7% five-year yield average.

Despite no dividend growth over the past three years, the company’s current dividend yield is still more than double the 1.98% and 1.90% average yields of the overall Consumer Goods sector and the Major Auto Manufacturers industry segment, respectively.

The share price dip in 2018 overpowered the dividend distributions to deliver a 12% total loss over the past 12 months. However, the company also offered its shareholders a 13.2% total return over the past three years and 14.5% over the past five years.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


Ned-Piplovic

 

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.


 

Investors seeking asset appreciation have a greater level of flexibility for buying and selling equities than dividend-seeking investors, who must account for specific dividend dates to maximize their investment returns.

Because investors trading non-dividend securities do not have the additional constraint of dividend dates, they can afford to focus on analyzing equity fundamentals, announcements of business initiatives and share price movement to time their trades for optimum financial gain. Alternatively, maximizing gains from dividend-paying equities involves the additional restriction of buying and selling equities around specific dates to ensure eligibility for receiving the dividend payout for a specific payout period.

The basic theory for investing in non-dividend securities is fairly simple: “Buy low, sell high.” Unfortunately, determining and timing correctly share-price lows and highs is not quite that simple. However, while that is a completely separate topic for another occasion, plenty of useful information is available from the investment experts on StockInvestor.com.

 

Dividend Dates

Because of the dividend distribution schedule, investors trying to maximize their dividend income must pay close attention to four key dividend dates: Declaration Date, Ex-Dividend Date, Record Date and Pay Date. Each of these dates has a specific role in the dividend distribution process. To answer the question when dividends get paid, this article first will provide some general information about all the dividend dates and their significance to income-seeking investors.

While each of these dates plays a role in the dividend distribution timeline, the Ex-Dividend Date determines share ownership. This date determines which investors have a claim to the next round of dividend payouts. Buying or selling equity shares on the “wrong” date could mean that the investor misses the next dividend distribution and must wait for the subsequent round. While that might mean only an additional month in some cases, in other instances that could represent a wait of up to six month or even a full year. Furthermore, when trading equities that pay qualified dividends, the timing of the trades also carries tax implications. To qualify for the preferential tax status and reduced tax rates, investors must specifically adhere to defined minimum holding periods.

Skipping a few dividend payouts because of missed ex-dividend dates or foregoing the reduced tax rate occasionally because of selling an equity before the expiration of the minimum holding period might not seem like much. However, missing the compounding effect on even a small investment amount over a very long term can add to a significant difference.

Knowing when dividends are paid and timing equity purchases is important. Some investors have developed a whole investing strategy – called the dividend-capture strategy – around timing equity purchases. This strategy aims to maximize the total annual dividend income, even at the expense of capital gains.

 

Declaration Date

The Declaration Date is the first of the four dividend dates, which provides information about the upcoming dividend distributions. After a public company’s Board of Directors approves the proposed dividend distribution amount and schedule, the equity files an 8-K form with the United States Securities and Exchange Commission (SEC) about the dividend declaration and makes an announcement to the public. In addition to providing the payout amount, the equity also provides the remaining dividend dates and any other relevant information.

Depending on their specific dividend policy and payout frequency, some equities determine and declare a dividend for each payout period. However, equities whose dividend policy includes specific rules for dividend distributions can elect to declare all their dividend payouts for the entire year at one time.

 

Ex-Dividend Date

Since it determines stock ownership and eligibility for receiving dividend payouts, the Ex-Dividend Date is the most important of the four dates. The name – ex-dividend – is a literal translation of the Latin phrase “without dividend.” That is because the share or unit price of the security hypothetically should begin trading at a price that is lower than the previous day’s closing price by the declared dividend amount. However, investors generally distort the market price by buying shares and driving the price higher in anticipation of the ex-dividend date.

The ex-dividend date also determines stock ownership and an investor’s eligibility to receive succeeding dividend distributions. Because of the current SEC settlement period rules – which will be discussed in the next section below – investors must have share ownership at least one day before the ex-dividend date to receive the next round of dividend payouts. The seller retains share ownership and dividend payout eligibility for any transactions occurring on the ex-dividend date. The buyer does not gain ownership until the following day.

 

Record Date

On the Record Date, or Date of Record, publicly traded equities compile the list of all “shareholders of record.” This list identifies all investors that are certified as share or unit owners. These are the shareholders that will receive the dividend distribution for that period. Since investors must own the stock prior to the ex-dividend date and the ex-dividend date  is set one day before the Record Date, investors must own the stock at least two days before the Record Date to be eligible for the next dividend payout.

Settlement Period

The current SEC rules require that all trading transactions must comply with the T+2 settlement system. Under the requirement of this system, all financial market transaction must clear no later than two full business days after the trade day – which is the “T” in the T + 2 formula.

This settlement interval used to be much longer when all transaction records were manual. During the 17th and 18th century, the interval generally ranged from two weeks to a whole month. Just before the most recent reduction, the interval shrank to just three days as recordkeeping became more automated and means of communications advanced. The most recent change occurred in September 2017, when the SEC reduced the allowed settlement period from T+3 to the current T+2 interval. At the same time, NASDAQ adjusted its own requirements and defined the ex-dividend date as “the first business day before the record date.”

In more practical terms, the T+2 system requires that all trading transactions before closing on Monday clear and settle before the end of trading on Wednesday. Then Tuesday’s trades must settle by the end of trading on Thursday and so forth. However, since Saturday and Sunday are not trading days, the settlement deadlines for Thursday’s and Friday’s trades are the end of trading on Monday and Tuesday, respectively, of the following week. The table below depicts the detailed settlement requirements.

Dividend Dates

 

Pay Date

The actual dividend payments are made on the Pay Date or Date of Payment. This is the date when the security mails out the dividend checks of initiates the direct fund transfers to the shareholders’ brokerage account. The SEC has no specific rules regarding pay date timing.

Most pay dates occur within two to four weeks after the record date. However, the pay date can occur just a few days after the record date. Depending on the dividend distribution frequency, pay dates can occur at different intervals. The most common distribution frequencies are monthly and quarterly. However, the pay dates also can occur semiannually – favored by many European companies because this timetable aligns with their schedule of reporting financial results twice per year.

By paying attention to all the early dividend dates and executing their trading strategy around the ex-dividend dates, income seeking investors can sit back in anticipation of the upcoming pay dates when they will be collecting the fruits of their earlier labor.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


Ned-Piplovic

 

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.


 

Meredith Corporation (NYSE:MDP) – a magazine publisher – continues to reward its shareholders with strong dividend income distributions over the long term.

The company has been rewarding investors with dividend income distributions since 1930 and has hiked its annual dividend amount for the past 25 consecutive years. Over that period, the company managed to maintain an average growth rate of 11% per year and enhanced its total annual dividend income payouts more than 13-fold.

While providing a steady asset appreciation for nearly three decades, the company encountered some headwinds in 2007 while converting its business from traditional magazine and newspaper print model and incorporating digital media into its product portfolio. During this transition, the company’s share price lost nearly 80% of its value between May 2007 and February 2009. While experiencing increased volatility, the share price has recovered nearly 85% of its losses and advanced 325% since bottoming out in early 2009.

The share price is down almost 10% over the past 12 months. However, the 50-day moving average (MA) continues to rise after crossing above the 200-day MA on November 9, 2018. Furthermore, the share price also has remained above both moving averages since the beginning of November. These technical indicators might suggest a prolonged uptrend. If the rising trend indeed continues, the current share price has nearly 15% room on the upside before it reaches the analysts’ average target rate of $60.20.

The company will distribute its next dividend on the company’s December 14, 2018 pay date to all its shareholders of record prior to the November 29, 2018 ex-dividend date.

Dividend Income

Meredith Corporation (NYSE:MDP)

Headquartered in Des Moines, Iowa and founded in 1902, the Meredith Corporation operates as a diversified media company in the United States, Europe and Asia through two main business segments. The Local Media segment operates approximately 17 television stations that include local CBS,  FOX, ABC, NBC and MyNetworkTV affiliates, as well as 2 independent stations. The National Media segment offers national consumer media brands through various media platforms, including print magazines, digital and mobile media, brand licensing, database-related activities and business-to-business marketing services. The company distributes multiple publications, including People Magazine, Better Homes & Gardens, InStyle, Allrecipes, Real Simple, Shape, Southern Living and Martha Stewart Living, as well as 275 other special interest publications under nearly 70 separate brands. Additionally, this segment operates a creative content studio called The Foundry, which develops content marketing programs across various platforms. The content studio provides native advertising that enables clients to engage new consumers and build long-term relationships with existing customers for a range of industries.

The company’s share price peaked at $71.80 on December 11, 2017 and then settled into a six-month-long decline. After that decline, the share price bottomed out at $47.85 on June 5, 2018 and reversed direction again to embark on a volatile and slow recovery. The share price declined again almost 9% during the overall market pullback in October 2018 but recovered all those losses by the first week in November. While the overall markets continued to struggle, the MDP’s share price maintained its level and closed on November 20, 2018 at $54.44. While still 9.5% lower than it was last year, this closing price was almost 14% higher than the 52-week low from the beginning of June 2018.

Unlike the struggling share price, the company’s dividend continues to advance. The current $0.545 quarterly dividend income payout is 4.8% higher than the $0.52 payout amount from the same period last year. This new dividend amount corresponds to a $2.18 annualized distribution and yields 4%, which is 11% above the company’s own 3.6% five-year average. Furthermore, MDP’s current dividend yield is double the 2% average yield of the overall Services sector, as well as nearly 90% higher than the 2.12% simple average of the Publishing & Newspaper industry segment.

Over the past two decades the company enhanced its total annual dividend income payout nearly eight-fold, which corresponds to an average annual growth rate of nearly 11%. Even over the past decade, the Meredith Corporation managed to maintain an average dividend growth rate of nearly 10% while advancing the total annual payout amount more than 150%

While the dividend income was unable to fully compensate for the share price decline over the past year, the dividend payouts managed to offset some of the damages and limit the total shareholders’ loss to 3.2%. However, the company delivered a total return of more than 28% over the past five years and a total return of 36% over the past three years.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


 

Ned-Piplovic

 

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.


 

The Lockheed Martin Corporation (NYSE:LMT) hiked its upcoming quarterly dividend another 10%, which brought the company’s streak of annual dividend hikes to 16 consecutive years.

In addition to boosting its dividend payout for so many years, the company also managed to maintain a double-digit percentage dividend growth rate over that period. While the share price stumbled a little during 2018, the long-term asset appreciation is strong, and the company’s current share price is still more than 25% lower than the analyst’s average target price.

Quarterly Dividend

As evident from the chart above, Lockheed Martin has managed to provide its shareholders with reliable capital growth and with only few minor corrections over the past few decades. A loss of the Republican majority in the U.S. House of Representatives would generally spell trouble for defense spending, as well as companies that provide defense products and services, such as Lockheed Martin, Boeing (NYSE:BA), General Dynamics (NYSE:GD) or Northrop Grumman (NYSE:NOC). However, the Congress already has passed and the President Trump has signed the defense spending budget for the next fiscal year in September 2018. Therefore, the companies’ that provide defense products and services should be safe from defense budget cuts at least until the budget for the following fiscal year.

Furthermore the Lockheed Martin Corporation keeps gaining additional contracts. Just in the past week, the company received a contract for nearly $300 million from the U.S. Navy and a $22.7 billion order for 255 F-35 fighter jets. The company also announced that its Skunk Works team has begun the construction of its X-59 Quiet Supersonic Technology aircraft, with $250 million awarded by NASA to provide a supersonic craft for NASA’s Low-Boom Flight Demonstration program. These are just a few of LMT’s projects that should keep the company’s financials in the green and beating estimated earnings consensus – like the company did over the past three consecutive quarters.

Lockheed Martin will distribute its next round of quarterly dividend payouts on the December 28, 2018, pay date to all its shareholders of record prior to the November 30, 2018, ex-dividend date.

Quarterly Dividend

Lockheed Martin Corporation (NYSE:LMT)

Headquartered in Bethesda, Maryland and founded in 1909, the Lockheed Martin Corporation  engages in the research, design, development, manufacture and integration of technology systems, products and services worldwide. The company operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems and Space Systems. The Aeronautics segment offers combat and air mobility aircrafts, unmanned air vehicles and related technologies. The Missiles and Fire Control segment provides air and missile defense systems, tactical missiles and air-to-ground precision strike weapon systems, logistics and fire control systems, manned and unmanned ground vehicles and energy management solutions. Additionally, the Rotary and Mission Systems segment offers military and commercial helicopters, sensors for rotary and fixed-wing aircraft, sea and land-based missile defense systems, radar systems and simulation systems for training. The Space Systems segment offers satellites, strategic and defensive missile systems and space transportation systems. Also, this segment offers classified systems and services for the support of national security systems.

While the company’s share price doubled over the past five years, the price encountered some headwinds over the past 12 months. After gaining nearly 14% to reach its 52-week high of $361 on February 15, 2018, the share price entered a period of significant volatility and declined 20% before closing at a year’s low of $286.67 on October 29, 2018. Since bottoming out at the end of October, the price moved up slightly and closed on November 20, 2018 at $293.86, which was approximately 7% lower than one year earlier, 2.5% above the October low and 107% higher than it was five years ago.

However, the company continued to offer double-digit percentage hikes of its quarterly dividend payouts with a 10% boost from a $2.00 quarterly dividend distribution in the previous period to the current $2.20 quarterly dividend payout. The current payout corresponds to an $8.80 annualized dividend yield and a 3% dividend yield, which is 14% above the company’s five-year average of 2.6%

As the highest in the Aerospace-Defense Products & Services segment, LMT’s current yield is nearly triple the 1.03% average of all the companies in the segment, as well as double the 1.43% yield average of the segment’s only dividend-paying companies. Also, the company enhanced its total annual dividend 20-fold over the past 15 consecutive years, which corresponds to a 20.6% average annual growth rate. While the share price decline in 2018, delivered a 1.6% total loss for the year, long-term shareholders enjoyed a 41.5% total return over the past three years and a total return of 136.5% over the past five years.


Dividend increases and dividend decreases, new dividend announcements, dividend suspensions and other dividend changes occur daily. To make sure you don’t miss any important announcements, sign up for our E-mail Alerts. Let us do the hard work of gathering the data and sending the relevant information directly to your inbox.

In addition to E-mail Alerts, you will have access to our powerful dividend research tools. Take a quick video tour of the tools suite.


 

Ned-Piplovic

 

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.


 

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