NextEra Energy, Inc. (NYSE:NEE), a Florida-based electricity producer and distributor, has rewarded its shareholders with annual dividend boosts for the past 20 consecutive years and is currently offering a 2.6% forward dividend yield.

In addition to rewarding its shareholders with two decades of annual dividend hikes, the company also offered a relatively steady asset appreciation for nearly a decade. Just over the past year, the company’s 16% capital growth combined with the annual dividend income for a total return on shareholders’ investment of nearly 20%. The shareholders also more than doubled their money over the past five years.

Investors interested in a stock with balanced returns from increasing annual dividend income, as well as stable share price growth, should confirm the company’s financial stability by conducting their own due diligence. Any investors that choose to take a long position in NextEra’s stock should do so before the next ex-dividend date on August 29, 2018. The pay date will follow a few weeks later, on September 17, 2018.

Annual Dividend

NextEra Energy, Inc. (NYSE:NEE)

Headquartered in Juno Beach, Florida, and founded in 1984, NextEra Energy, Inc. generates electric power and distributes electricity to residential and commercial customers primarily in Florida. Based on more than 46,000 MW of generating capacity with electric generation facilities located in 30 U.S. states and four Canadian provinces, NEE is one of the largest electric power companies in North America. The company operates through two main subsidiaries – Florida Power & Light Company (FPL) and NextEra Energy Resources (NEER). FPL provides electricity distribution to more than 5.5 million residential and commercial customer accounts and 10 million people across almost half the state of Florida.

Through its NEER subsidiary and its affiliated entities, NextEra Energy is the largest generator of renewable energy from the wind and sun in the world based on Megawatt hours (MWh) produced in 2016. Representing approximately 6% of U.S. nuclear power electric generating capacity, the company had one of the largest arrays of nuclear power stations in the United States, with eight reactors at five sites located in Florida, New Hampshire, Iowa and Wisconsin. NEER’s assets accounted for approximately 11% of the installed base of universal solar power production and about 16% of the installed base of wind power production capacity in the United States.

The company’s current $1.11 quarterly dividend is almost 13% higher than the $0.9825 payout from the same period last year. This new $1.11 quarterly distribution corresponds to a $4.44 annualized payout and currently yields 2.6% at current share price levels, which is in line with the company’s yield average over the past five years.

The company managed to maintain an average dividend growth rate of 7.7% over the past two decades. As a result of compounding its annual dividend boosts at that rate, the company has advanced its total annual dividend payout almost 350% above the $1.00 annualized dividend distribution paid in 1997. Additionally, the company’s current yield is right on pace with the average yields of NextEra Energy’s peers in the Electric Utilities industry segment and 2% higher than the average yield of the overall Utilities sector.

The company’s share price has performed as a textbook example of a long-term growth equity. As the graph below shows, the share rose steadily with minimal volatility. The share price’s performance seems almost boring, which is exactly what long-term investors should seek for their portfolio.

Annual DividendNextEra Energy, Inc. (NYSE:NEE): share price over last five years; Chart Source: Yahoo Finance

Similar to its five-year performance, the share price grew almost uneventfully over the last 12 months. The only significant step outside the rising trend was an 8.2% drop in the first week of February, when NEE’s share price followed the drop of the overall market. However, the share price fully recovered those losses by mid-March and continued to ascend towards its 52-week high of $172.77 on August 15, 2018. That closing price marked a total gain of nearly 19% above the February low. Additionally, the August 15 closing price is also 16% higher than it was 12 months earlier and more than 110% higher than it was five years ago.

The combined benefit of the company’s increasing share price and its rising dividend income rewarded the shareholders with a total return on investment of nearly 20% over the last year and almost 70% over the past three years. However, the shareholders more than doubled their investment over the past five years with a total return of 125%.


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 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 completing a business restructuring in 2010, LyondellBasell Industries N.V. (NYSE: LYB) has seen impressive long-term growth in both its dividend payouts and its share price. LYB restarted dividend distributions in 2011 and has boosted its annual dividend every year for the past seven years. Also, it has nearly tripled its share price over the same time frame.

In addition to solid long-term returns, short-term returns have also been strong. The performance over the last year includes a 10% boost in the annual dividend and asset appreciation of more than 25%.

With a seven-year track record of increasing payments already behind it, LYB is well positioned for additional growth in the future. The current dividend payout ratio of 26%, almost 31% lower than the payout ratio over the past five years, shows that current distributions and future increases are built on a solid foundation. Meanwhile, technical indicators suggest that the share price might have more upside potential as well as the end of the third quarter nears.

Investors interested in potential further growth in both areas – dividends and share price – may want to take a position before the company’s next ex-dividend date. LyondellBasell has yet not announced the next distribution period yet, but based on past distributions, it should do so within the next week. Expectations of another $1.00 quarterly distribution amount, an ex-dividend date in the first few days of September and a pay date in mid-September 2018 are reasonable.

LyondellBasell Industries

LyondellBasell Industries N.V. (NYSE:LYB)

Incorporated in the Netherlands, and with operational headquarters based in London and Houston, Texas, LyondellBasell Industries N.V. is one of the largest plastics, chemicals and refining companies in the world. While officially founded in its current iteration in 2005, the company traces its roots to the early 1950s and the two scientists — Karl Ziegler and Giulio Natta — who discovered some of the basic polymers that comprise the core of LyondellBasell’s current chemical production. For their discoveries in polyolefin technology and catalysts, Ziegler and Natta jointly received the Nobel Prize for Chemistry in 1963.

LyondellBasell develops products and solutions in four key areas — Chemicals, Polymers, Fuels and Technologies. The company is a leading producer of basic chemicals for the chemical industry, and these chemicals contribute to the production of fuels, automotive fluids, furniture, coatings, adhesives and cleaners, as well as cosmetics and personal care products. Additionally, the company is one of the world’s largest producers of plastic resins, such as polypropylene and polyethylene, which are raw materials used in production of automobile parts, renewable energy technologies, packaging, piping and textiles. LYB operates one of the largest refineries in the United States and has 55 manufacturing facilities around the world that support distribution of its products to more than 100 countries.

The current $1.00 quarterly payout is 11% above the $0.90 distribution in the same period last year and corresponds to a $4.00 annual dividend amount. Since 2011, the company has enhanced its total annual dividend more than six-fold, which converts to the average compounded growth rate of almost 30% per year.

In terms of comparison with its industry peers, LyondellBasell’s current dividend yield is almost 50% above the 2.39% average yield of the entire Basic Material sector and more than 140% higher than the 1.48% simple average yield of all the companies in the Specialty Chemicals industry segment. Furthermore, as the equity with the second-highest yield in the Specialty Chemicals segment, LYB outperformed the 2.05% average yield of the segment’s dividend-paying companies by nearly 75%.

The steadily increasing share price and the rising annual dividend distributions rewarded shareholders with a total return of almost 32% over the past year. Because the share price suffered a minor pullback in early 2015, the 38.2% total return over the past three years is only slightly higher than the one-year payback. However, the five-year total return exceeds 85%.


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 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.


 

Featured Image Source: Company Website

Hubbell Incorporated (NYSE:HUBB) boosted its annual dividend every year over the past decade and the company’s current 2.55% dividend yield outperformed industry averages by significant margins.

In addition to the current streak of 10 consecutive annual dividend hikes, the company cut its annual dividend amount only one time in the past 18 consecutive years. That dividend cut occurred during the financial crisis in 2008. However, the company resumed its annual dividend hikes immediately and increased the total annual dividend amount above the 2007 level within two years.

Similarly, the share price lost almost 55% of its value between mid-2007 and February 2009. After reversing trend in early 2009, the share price embarked on a rising trend and ascended more than 350% over the past decade. The share price experienced a decline of more than 25% in early 2018. However, the January peak resulted from a share price spike in late 2017, Therefore, after recovering nearly half of those losses, the share price currently trades within its five-year trend range.

Investors interested in the rising annual dividend income and convinced that the share price could continue its current 90-day uptrend, should act quickly. The company’s next ex-dividend date  will occur on August 30, 2018. The company will distribute its next quarterly dividend distribution on the September 14, 2018, pay date to all its shareholders of record prior to the August 30, 2018, ex-dividend date.

dividend distribution

Hubbell Incorporated(NYSE:HUBB)

Based in Shelton, Connecticut and founded in 1888, Hubbell Incorporated designs, manufactures and sells electrical and electronic products. The company operates through two business segments. The Electrical segment offers standard and special application wiring device products, connector and grounding products, lighting fixtures and controls. Additionally, this segment offers other electrical equipment for use in industrial, commercial and institutional facilities, as well as components and assemblies for the natural gas distribution market. Furthermore, this segment also designs and manufactures various high voltage test and measurement equipment, industrial controls and communication systems for industrial markets, as well as the oil, gas and mining industries. The Power segment designs, manufactures and sells distribution, transmission, substation and telecommunications products. Over the past 130 years, the company evolved from a family owned business to a global player with 2017 revenues of $3.7 billion. As of May 2018, Hubbell Incorporated’s portfolio included 82 brands, with a third of those brands acquired in the last five years. The company spent nearly $900 million for these acquisitions and in the process increased its earnings before interest, taxes, depreciation and amortization (EBITDA) nine-fold.

The company’s share price spiked at the beginning of the trailing 12-month period and rose  more than 22% over the first five months. After reaching its 52-week high of $139.21 on January 26, 2018, the share price gave back all those gains and continued to decline. The share price fell 26.4% below the January peak by the time the price reached its 52-week low of $102.51 on May 1, 2018.

However, the share price reverse direction again and resumed its growth trend. The share price ascended almost 18% to close at $120.83 on August 15, 2018. This closing price was 6% higher than one year earlier and 15% higher than it was five years ago.

The current $0.77 upcoming quarterly payout is 10% above the $0.70 dividend distribution from the same period last year. The new quarterly payout amount converts to a $3.08 annualized dividend and corresponds to a 2.55% forward yield. This current yield is 12.3% higher than the company’s 2.27% average yield over the past five years.

Furthermore, the company’s current yield performed even better compared to the average yields of its industry peers. The current 2.55% yield outperformed the 1.8% average yield of only dividend-paying companies in the Diversified Electronics industry segment by more than 40% and the 1.07% average of all the segment’s companies by almost 140%. Additionally, Hubbell’s current yield is also more than 125% above the 1.13% average yield of the entire Technology sector.

Over the past decade since the most recent dividend cut in 2008, the company advanced its total annual dividend payout amount three-fold from $1.03 to the current $3.08. This level of dividend growth corresponds to an average annual growth rate of 11.6%.

Despite the share price drop of more than 25% in early 2018, the shareholders received a total return of more than 8% over the last 12 months. The more stable share price growth over the past three years contributed significantly to the 25.4% total return over the past three years.


Dividend distribution increases and dividend distribution 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 a 20% dividend cut in 2009 followed by five years of flat annual dividend distribution payments, Sun Life Financial, Inc. (NYSE:SLF) resumed dividend hikes and boosted its annual dividend over the past four consecutive years.

In addition to the rising annual dividend payouts, the company’s current yield is almost 10% higher than the company’s five-year average yield and outperformed the average industry yields between 22% and 96%.

While experiencing some volatility and pullbacks in early 2018 from its January peak, the company’s share price still managed a small total return on shareholders’ investment over the past 12 months. However, the company rewarded shareholders that invested few years ago with total returns in excess of 40% over the past three and five years.

The company will distribute its next dividend on company’s September 28, 2018 pay date to all its shareholders of record before the August 28, 2018 ex-dividend date.

Dividend Distribution

Sun Life Financial, Inc. (NYSE:SLF)

Headquartered in Toronto, Canada and founded in 1999, Sun Life Financial, Inc. is a financial services company that provides insurance, wealth and asset management solutions to individuals, corporate clients, high-net-worth individuals and families. The company operates through five business segments — Sun Life Financial Canada, Sun Life Financial United States, Sun Life Financial Asset Management, Sun Life Financial Asia and Corporate. The portfolio of Sun Life’s product and service offerings includes life, health, long-term disability, short-term disability, absence management, medical stop-loss and dental insurance, as well as vision and voluntary insurance, such as accident and critical illness. Additionally, the company provides a suite of voluntary benefits solutions to individual plan members, including post-employment life and health plans, asset management and group retirement products and services, contribution pension plans, defined benefit solutions and mutual funds. The company distributes its products through direct sales agents, managing general agents, independent general agents, financial intermediaries, broker-dealers, banks, benefits consultants and other third-party marketing organizations.

Sun Life’s current $0.364 (CAD $0.475) quarterly dividend is 9.2% higher than the $0.333 (CAD 0.435) payout from the same period last year. The upcoming quarterly dividend distribution converts to a $1.45 (CAD 1.90) annual payout, which is equivalent to a 3.7% forward dividend yield at the current share price levels. Compared to the company’s 3.6% average dividend yield over the past five years, the current 3.7% yield is 2.7% higher.

In addition to slightly outperforming its own five-year average yield, the company’s current yield outpaced the average yields of industry peers by much wider margins. Sun Life’s current yield is 22% higher than the 3% simple average yield of the entire Financials sector and almost twice the 1.87% average yield of all the companies in the Life Insurance industry segment. As the security with the second-highest yield in the Life Insurance segment, Sun Life’s 3.7% current yield even outperformed the 2.28% average yield of only the dividend-paying companies by more than 60%.

Over the past four years of consecutive annual dividend distribution hikes, the company advanced its total annual dividend amount by 32%, which corresponds to an average growth rate of 7.2%. Even with the 20% dividend cut in 2009 and five consecutive years of no dividend distribution hikes, the company still managed to enhance its total annual payout four-fold since initiating dividend distributions in 2000. This level of dividend growth translates to an even higher long-term average annual growth rate of 8.4%.

The 2008 financial crisis affected the company’s share price negatively, causing it to drop nearly 80% from its all-time high of more than $57 in late 2007 to slightly above $12 by early 2009. Despite moderate volatility, the share price has more than tripled since March 2009.

The share price passed through its 52-week low of $38.10 on August 30, 2017 and advanced almost 16% before it reached the $44.15 high on January 22, 2018. The share price encountered increased volatility over the past seven month and ultimately dropped 10% from the 52-week high in January to close at $39.75 on August 14, 2018. While down from the year’s peak, the August 14, 2018 closing price was still 2.6% higher than a year earlier, 4.3% above the August 2017 low and 25% higher than it was five years ago.

The small share price growth and rising dividend income have rewarded the company’s shareholders with a total return of 6.2% in the last 12 months, 40% over the past three years and nearly 44% over the past five years.


Dividend distribution increases and dividend distribution 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.


 

dividend yield        ex-dividend date                     dividend payout ratio                             dividend

After two consecutive years of reduced annual dividends, the China Petroleum & Chemical Corporation — or Sinopec Limited (NYSE: SNP) — restored its annual dividend to above the pre-cut level in 2017.

In 2018, SNP surprised in a big way by increasing the annual distribution by 70% above the already increased level of the prior year. With this huge increase, SNP’s annual dividend has grown more than eight-fold since the company initiated distributions in 2001.

While the dividend growth of the last few years makes this equity appealing, there are a few signals that warrant some caution. Primarily, the company’s dividend payout ratio is currently above 100%. The generally accepted maximum for a sustainable payout ratio is 50%, which puts SNP’s ratio at more than twice this level. Also, interested investors should pay close attention to the price-to-earnings (P/E) ratio, which, at 12.8, is approximately 35% higher than the industry average.

Though these signals are negative, they are not yet at critical levels. So long as an investor keeps a watchful eye out for any additional negative signals, investing money in the company is still a viable option, especially if one wants to cash in on the generous bi-annual dividend payments.

Sinopec has not yet declared an ex-dividend date for its upcoming distribution, but based on its past records, a late August to early September ex-date can be expected. The payout date for the dividend should be sometime in mid-September.

China Petroleum & Chemical Corporation – Sinopec Limited –(NYSE: SNP)

Headquartered in Beijing and founded in 2000, the China Petroleum & Chemical Corporation — also referred to as Sinopec Limited — is an energy and chemical company that engages in oil, gas and chemical operations. In terms of 2017 total revenues, the company’s parent entity — China Petrochemical Corporation, or the Sinopec Group — is the world’s largest oil refining, gas and petrochemical conglomerate, as well as the third-largest company overall according to Fortune Magazine’s Global 500 list. The company operates through five business segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others.

Sinopec’s annual dividend dropped almost 18% in 2015 and then another 34.6% in 2016, resulting in a total decline of more than 46% over a two-year period. However, the company then corrected the trend by increasing the annual payout 90% in 2017, which was 2.5% higher than the total dividend paid in 2014 before the two cuts.

After nearly doubling its annual dividend in 2017, the company raised its forecasted payout for 2018 more than 70% to $6.13 per share, which is equivalent to a 6.5% forward yield. This yield is almost 34% above the Sinopec’s 4.9% average yield over the past five years. Additionally, Sinopec’s current yield outperforms by almost three-fold the 2.33% average yield of the overall Basic Materials sector and is 125% higher than the 2.91% average yield of all the companies in the Independent Oil & Gas industry segment. The company’s current yield is even 16.3% higher than the 5.63% average yield of the segment’s only dividend-paying companies.

Sinopec advanced its total annual dividend nearly 230% over the past two consecutive years, which corresponds to an average annual growth rate of more than 80%. Even with five annual dividend cuts since 2001, the company still enhanced its total annual payout amount more than eight-fold and maintained an average annual growth rate of 12.4% over the past 18 years.

Following a brief downtrend that began in April 2017, the share price declined almost 7% at the onset of the trailing 12-months to a 52-week low of $69.82 on December 7, 2017. However, the trend then reversed and ascended more than 50% towards the 52-week peak of $105.50 on May 14, 2018. Prices have pulled back somewhat in the last few months after peaking in mid-May, and currently trade at $93.55, or 25% higher than it was one year prior and 34% above the 52-week low. The share price and dividend growth combined for total return of 32.4% over the past 12 months. Furthermore, the company achieved a total return of 40% over the past three years and a slightly higher total return of almost 47% 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.


 

While its share price declined nearly 60% over the past year, Newell Brands, Inc. (NYSE:NWL) continues to enhance its annual dividend distribution payouts. Investors may consider these moves as a signal to close positions and look for asset appreciation elsewhere or as a buying opportunity to take a position at a discounted price in an equity with rising dividends and potential long-term capital gain.

One of the reasons for the sharp share price decline is a pending litigation in which Newell Brands and some of the company’s executives are charged with violating federal securities laws because the executives failed to disclose material information between February 2017 and January 2018. The lawsuit claims that:

“(1) Newell Brands’ retail channel was loaded with extremely high levels of unsold Newell Brands product;

(2) contrary to defendants’ representations, the build-up of Newell Brands inventory in the retail channel was due to Newell Brands-specific rather than macroeconomic reasons;

(3) as a result of the unusually high levels of unsold inventory in the retail channel, Newell Brands was exposed to a heightened risk that it would experience slower sales growth in future periods; and

(4) undisclosed managerial and cultural differences in the legacy Newell Brands and Jarden businesses had created significant internal discord that was having a material adverse effect on the Newell Brands’ operating performance. When the true details entered the market, the lawsuit claims that investors suffered damages.”

Another reason for the share price fall is the potential impact of new tariffs, which the company estimates could have an annual impact of more than $100 million.

The share price reached its 52-week high of $50.74 on the second day of the trailing 12 months and the 52-week low occurred on the next to last of the trailing 12-month period as of this writing. The share price closed on August 14, 2018, at $20.65, which was 59% lower than it was one year earlier and just 1% above the 52-week low from the day before.

However, the dividend distribution payouts have been rising steadily since the company cut its annual dividend payout nearly 70% in the first two quarters of 2009. The company also missed a dividend hike in 2016. Therefore, the current consecutive hikes streak stands at just two years, with a 21% total annual dividend boost and an average growth rate of 10% per year. However, the company has enhanced its total annual dividend distribution amount 360% since 2010, which corresponds to a much higher average growth rate of 21% per year.

The company’s next round of dividend distributions will occur on September 14, 2018. On that date, the company will distribute its next round of dividends to all shareholders of record before the August 30, 2018, ex-dividend date.

Dividend Distribution

Newell Brands, Inc. (NYSE:NWL)

Headquartered in Hoboken, New Jersey, and founded in 1903, Newell Brands Inc. designs, manufactures and distributes consumer and commercial products. The company’s Live segment offers household products, baby gear, infant care and health products under multiple brands. The Learn segment offers writing instruments, art products, adhesive and cutting products, fine writing instruments, labeling solutions and academic regalia. Additionally, the Work segment offers cleaning products, hygiene systems, material handling solutions, consumer and commercial totes, as well as commercial food service and premium tableware products. The Play segment offers products for outdoor and outdoor-related activities. Finally, the company offers plastic products, such as plastic cutlery and rigid packaging, beauty products, vacuum cleaning systems and gaming products. The company distributes its products under some well-known consumer brands, such as Calphalon, Crock-Pot, Graco, Mr. Coffee, NUK, Oster, Rubbermaid, Sunbeam, Yankee Candle, Dymo, Elmer’s, Expo, Mr. Sketch, Paper Mate, Parker, Sharpie, Waterman, Coleman and X-Acto.

The company’s current $0.23 quarterly dividend distribution is equivalent to a $0.92 annualized payout and a 4.5% dividend yield, which is more than double the company’s 2.2% five-year average. Unfortunately, only a portion of the yield’s growth over the past five years came from the annual dividend increases. A significant contributor to the yield rise was the sharp share price dividend decline over the last year.

The company’s current primary focus is executing its Transformation Plan with the attention on restructuring the company into a more efficient operation with a focus on its core businesses. As part of this program, the company already sold off The Waddington Group and Rawlings Sporting brands. The company also announced a tentative agreement with ACON Investments, L.L.C. private equity investment firm to divest Goody Products, Inc. Additionally, Newell Brands is seeking to divest Jostens and Pure Fishing, as well as exploring alternatives strategies for some of it other business, including U.S. Playing Cards, Process Solutions, Beauty, Consumer & Commercial Solutions and Team Sports.

While the company is in transition, the share price is highly likely to continue its downtrend. Some investors will certainly seek to exit their position and look for higher returns elsewhere. Alternatively, if Newell Brands’ Transformation Plan is successful, the lawsuit outcome is favorable and if the anticipated tariffs do not materialize, the share price could reverse its downtrend and, combined with the rising dividends, offer patient and risk-averse investors an opportunity for significant total returns over an extended time horizon. Investors will have to make their own evaluation and decide which strategy aligns best with their own investment goal and portfolio strategy.


Dividend distribution  increases and dividend distribution decreases, new dividend distribution 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.


 

Featured Image Source: Copmany Website

After cutting two-thirds of its quarterly dividend payout amid the financial crisis in 2009, Discover Financial Services (NYSE:DFS) resumed bosting its annual earnings distributions and continues that trend with the upcoming quarterly dividend hike of 14.3%.

Beside the 2009 quarterly dividend cut, the company paid a flat dividend the following year and then resumed its annual dividend boosts over the past eight consecutive years. In addition to hiking its quarterly dividend at least once every year for nearly a decade, the company maintained a relatively steady uptrend with only two noticeable pullbacks since 2010. Just over the past five years, the company combined its rising dividend and share price for a total return of more than 50% with the total return over the past 12 months exceeding 20%.

Discover’s low dividend payout ratio of 22% is in line with the company’s five-year average. The low payout ratio indicates that the current quarterly dividend distributions are well-covered by earnings and that the company should be able to maintain its rising annual dividends over the next few years.

Investors convinced that the share price and dividend payout growth will continue, should conduct their due diligence quickly and take a position prior to the company’s next ex-dividend date on August 22, 2018. Doing so will ensure eligibility for the next round of dividend distributions on the September 6, 2018, pay date.

Quarterly Dividend

Discover Financial Services (NYSE:DFS)

Based in Riverwoods, Illinois, and founded in 1960, Discover Financial Services operates as a direct banking and payment services company in the United States. The company’s Direct Banking segment offers Discover-branded credit cards to individuals, as well as other consumer products and services, including private student loans, personal loans, home equity loans and other consumer lending, Additionally, this segment offers also deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts and individual retirement arrangement certificates of deposit. The Payment Services segment operates the Discover Network, which processes transactions for Discover-branded credit cards and provides payment transaction processing and settlement services. Additionally, this segment also operates the PULSE network, which is an electronic funds transfer network that provides financial institutions issuing debit cards on the network with access to automated teller machines and point-of-sale terminals. Furthermore, this segment also operates Diners Club International — a payments network that issues Diners Club branded charge cards and provides card acceptance services.

The company declared a 14.3% quarterly dividend from the $0.35 payout in the previous period to the upcoming $0.40 quarterly dividend payout. Since resuming dividend hikes in 2010 the company advanced its annual dividend payout amount 20-fold, which is equivalent to an average growth rate of more than 45% per year.

The new quarterly dividend amount corresponds to a $1.60 annualized distribution and a 2.2% dividend yield, which is more than a third above the company’s 1.6% average yield over the past five years. Furthermore, the company’s current yield is also 5.5% higher than the 2.04% average yield of the entire Credit Services industry segment.

Like the annual dividend distributions, the company’s share price has been rising for nearly the past decade since the 2008 financial crisis. After spiking briefly in late 2017, the share price has returned to its average rising trend it held over the past two years. Just prior to the beginning of the late-2017 spike, the share price reached its 52-week low of $57.66 on September 8, 2017. After spiking more than 40% towards its 52-week high of $81 on January 29, 2018, the share price gave back some of those returns as settled into the previous average trend by closing on August 13, 2018, at $74.33. This closing price was approximately 8.5% lower than the January peak price, but still almost 23% higher than it was 12 months ago, nearly 30% above the September low and 50% higher than it was five years ago.

The company’s upcoming quarterly dividend hike and the asset appreciation blended into a total return on shareholders’ investment of nearly 27%. Additionally, the company rewarded its shareholders with a total return of more than 40% over the past three years, as well as a total return of almost 60% over the last 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.


 

Aegon N.V., a Dutch life insurance provider, has rewarded its shareholders with a fifth boost of the company’s annual dividend in the past six years.

In addition to the near-perfect record of dividend hikes in the past six years, the company also hiked its annual dividend 14 times in the past 17 years. AEG allows its shareholders to choose whether they wish to receive their dividend distributions as a cash distribution or as a stock dividend.

For the 2017 year-end dividend distributed in 2018, 42% of the shareholders elected to receive a stock dividend. These shareholders will receive one additional common share for every 39 common shares of the company’s stock that they already own. The company used the share price’s high and low of each of the five trading days from June 11 through the closing on June 15, 2018, as quoted on the Euronext Amsterdam exchange to determine the average share price. For this year, the average share price was $6.18 (€ 5.4174).

To counteract the dilutive effect of the stock dividend, Aegon N.V. committed to repurchase nearly 22 million shares between July 2 and August 10, 2018. The shares were set to be repurchased at “a maximum of the average of the daily volume-weighted average prices during the repurchase period.

The company completed its repurchase program of 21,954,140 common shares by the anticipated end date at an average share price of $6.09 (€ 5.34) and the company will hold the shares as treasury shares to use for covering future stock dividends.

In addition to its rising annual dividend distributions, the company’s share price finally recovered from a 60%-plus decline between the beginning of 2014 through mid-2016 to reward shareholders with positive returns over the past 12 months.

Based on Aegon’s dividend distribution timeline over the past few years, the company should distribute another round of dividends in early September to all its shareholders of record as of a yet-to-be-announced mid-August 2018 ex-dividend date.

Annual Dividend

Aegon N.V. (NYSE:AEG)

Founded in 1983 and headquartered in The Hague, Netherlands, Aegon N.V. provides life insurance, pensions and asset management services. The company offers life and protection products, as well as employer, endowment and term life insurance products. Additionally, the company also provides supplemental health, accidental death and dismemberment insurance, critical illness, cancer treatment, income protection, travel and long-term care insurance products. The company also provides annuities, retirement plans and mutual funds, as well as employer-sponsored pensions, mortgages and banking products. Furthermore, AEG offers other general insurance products, such as automotive, liability, disability, household insurance and fire protection, as well as financing and reinsurance services.

The company pays its dividend using an unconventional schedule. While paying two annual dividend distributions is not that unusual, the company pays its two installments in consecutive quarters instead of the more conventional way of distributing the payments six months apart. In 2018, the current $0.33 annualized payout corresponds to a 5.4% yield, which outpaced the company’s own 4.8% average dividend yield over the past five years by more than 12%.

Furthermore, Aegon’s current 5.4% yield outperformed the 3% average yield of the entire Financials sector by almost 80%. The comparison to the company’s peers in the Life Insurance industry segment is even more favorable. As the highest-yielding security in the entire segment, Aegon’s current yield is nearly triple the 1.87% average yield of all the companies in the segment and more than 130% above the 2.28% simple average yield of the segment’s only dividend paying companies. Over the past three years of consecutive annual dividend hikes, the company has enhanced its total annual payout amount 23%, which is equivalent to a 7.2% average annual growth rate.

After a decline of nearly 7% at the beginning of the trailing 12 months, the share price bottomed out at its 52-week low of $5.52 on October 5, 2017, before reversing the decline into a 6-month-long uptrend. At the end of that uptrend, the share price peaked on April 23, 2018, at $7.41 and gave back some of the gains to close on August 13, 2018, at $ 6.13. This closing price was 3.4% higher than one year earlier and more than 11% above the 52-week low from early October 2017. The small share price gain and the annual dividend distribution combined to offer Aegon’s shareholders a total return of nearly 6% over the last 12 months, which is a good indication of recovery over the 4% and 11% total losses over the past five and three 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 selection process for choosing stocks that are best suited for an investor’s portfolio involves extensive research and evaluation of multiple variables but the first decision is usually a choice between investing in dividend stocks or capital-growth stocks.

Depending on their overall investing goals, many investors will build their portfolio with a combination of dividend stocks to generate the desired level of income cash flow and capital-growth stocks to build long-term asset appreciation. The ratio of the two types of stocks will depend on the investor’s age, the proximity to retirement, whether the income portfolio is the sole source of income or just a supplemental wealth-building vehicle for part-time investors who have other sources of income, among other factors.

Is there a better way? Are there stocks that provide dividend income and capital growth? Market exchanges offer many dividend-paying stocks from which to choose. Some financial experts insist that dividend-paying stocks – especially stocks with rising dividend payouts – outperform other equities historically. Alternatively, other experts cannot even agree on whether dividend distributions even have merits or any positive effect on the stock’s performance.

However, regardless of the outcome of these debates, there will always be some investors who will seek dividend stocks with high share-price growth. To find stocks that fit the criteria, I have used the Dividend Screener tool on www.dividendinvestor.com to narrow the list to six likely candidates.

First, I excluded mutual funds, which used to be the go-to investment vehicle choice for easy diversification. However, mutual funds have some significant disadvantages and the popularization of exchange-traded funds (ETFs), which offer most of the same benefits as mutual funds without many of the disadvantages, made mutual funds less desirable than they were in the past.

Stocks with good dividend income distributions should yield at least 3%. However, the dividend yield by itself can be misleading and does not indicate the company’s ability to maintain dividend distribution over the long term. Therefore, to mitigate some of the risk of sudden dividend reduction or outright cuts, I limited the selection to equities with a dividend payout ratio of less than 50%.

Another helpful indicator of dividend, as well as share price stability, is the size of the company. Therefore, I included only companies that have market capitalization of more than $10 billion. Lastly, to identify the high capital growth securities, I limited the list to entries that achieved a total return of at least 25% over the past 12 months. This set of filter criteria resulted in the list below.

Below is the list of the six dividend stocks with a balanced benefit of dividends yielding more than 3% and one-year total returns that exceed 25% ordered by the total return from lowest to highest.

6 Dividend Stocks with High One-Year Total Returns: #6

Pfizer, Inc. (NYSE:PFE)

Pfizer rewarded its shareholders with a 28.5% total return over the past year, roughly similar to its total return over the past three years and a five-year total return in excess of 60%. The company’s dividend yield  is 3.28% and the dividend payout ratio is a 37%. Pfizer hiked its annual dividend over the past seven consecutive years and 18 times in the past two decades. The company’s next ex-dividend date will be in the first week of November 2018.

 

6 Dividend Stocks with High One-Year Total Returns: #5

LyondellBasell Industries NV (NYSE:LYB)

LyondellBasel’s total return over the past year was 31.7% and its 3.36% dividend yield is the second highest in this group. The total return over the past three years was a much more positive 42% and the total return was nearly 88% over the five-year period. While the company started distributing dividends only in 2011, it boosted its annual dividend payout over the past five years at an average growth rate of 13.7% per year. The company’s current 26% dividend payout ratio and the 34% average ratio over the past years are lowest of the group and indicate a high probability that the company will be able to support its rising dividend over the long term. The company’s next ex-dividend date will occur in early September 2018.

 

6 Dividend Stocks with High One-Year Total Returns: #4

The Gap, Inc. (NYSE:GPS)

The Gap performed better than the previous entry with a one-year total return of nearly 50%. The positive total return at this level is a good indication of the Gap’s turnaround in light of the company’s total losses of 3.5% and 22.2% over the last three and five years, respectively. GPS’s current yield is 3.14%, with a dividend payout ratio of 43%. While the company failed to boost its annual dividend in 2017, the total annual dividend payout is on track to end 2018 5.4% higher than the previous year. Prior to paying a flat dividend in 2017, the company boosted its annualized dividend for 13 consecutive years. The company’s next ex-dividend date will occur in early October 2018.

 

6 Dividend Stocks with High One-Year Total Returns: #3

The Target Corporation (NYSE:TGT)

Target’s 50% total return over the last year is a jump of nearly 40% above of the first two entries. The company offers the lowest dividend yield of the group at 3.11% but has the longest streak of dividend hikes with 46 consecutive years. Since Target is an S&P 500 component with such a long record of dividend hikes, the company has a distinction of being one of just 53 companies that carry the Dividend Aristocrats designation. Target will pay a quarterly dividend – which will be 3.2% higher than the previous period’s payout – to all shareholders of record before the August 14, 2018, ex-dividend date.

 

6 Dividend Stocks with High One-Year Total Returns: #2

Macys, Inc. (NYSE:M)

After losing more than 70% of its share price between mid-2015 and mid-2017, the company turned around its operations and rewarded its patient shareholders with a total return of 81% over the past year. The company’s current 3.8% yield is the highest in this group and the 29% dividend payout ratio is nearly a third lower than the company’s five-year average payout ratio of 43%. Despite rising its dividend distributions over the past seven years, Macys offered its shareholders a 3.1% total loss over the past five years and a 34% total loss over the past three years. The company’s next ex-dividend date will occur in mid-September 2018.

6 Dividend Stocks with High One-Year Total Returns: #1

Kohl’s Corporation (NYSE:KSS)

With a 101% total return over the past 12 months, the Kohl’s corporation edged out its nearest competition for the top spot by 20%. Additionally, the company currently offers a 3.28% forward yield and a 45% dividend payout ratio. The company started paying dividends in 2011 and has boosted its total annual dividend amount every year since then. In addition to the highest one-year total return, the company offered total returns of 34.5% and 64.5% over the past three and five years, respectively. The company’s next ex-dividend date will occur in early September 2018.

The six equities here represent the selection of stocks that currently offers the best combination of above average dividend income and short-term asset appreciation.

Please not that the table below updates every day and might contain different equities and/or information than listed above as the share prices change.

 

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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 J.M. Smucker Company (NYSE: SJM) is set to boost its quarterly dividend payout 9% in the upcoming distribution, which will also be the company’s 21st consecutive annual dividend hike.

In addition to the quarterly dividend hike, J.M. Smucker also offers a 3.1% current dividend yield, which outperforms the company’s own five-year average, as well as the average yields of industry peers.

After the 2008 financial crisis, SJM’s share price advanced nearly 350% and reached its all-time high in excess of $155 by July 2016. However, since that peak, the share price has pulled back on moderate volatility. While SJM is still recovering from a 23% drop over a 90-day period, the share price has gained more than 10% in the last 60 days and appears to be primed for additional gains.

Because the recent uptrend means that now could be a good time to acquire shares at discounted prices, interested investors should observe the price movement over the next few weeks and act accordingly. Alternatively, long-term investors who are confident that the share price will rise along its established long-term trend can consider taking a position before the Aug. 16 ex-dividend date. Doing so will ensure shareholders receive the upcoming distribution on the September 4, 2018 pay date.

Quarterly Dividend

The J.M. Smucker Company(NYSE: SJM)

Headquartered in Orrville, Ohio and founded in 1897, the J.M. Smucker Company manufactures and markets branded food and beverage products. The company operates through four business segments — International & Foodservice, U.S. Retail Coffee, U.S. Retail Consumer Foods and U.S. Retail Pet Foods. Among the company’s almost 50 brands are Folgers, Dunkin’ Donuts, Jif, Smucker’s, Crisco, Pillsbury, Meow Mix, Milk-Bone, Natural Balance, Carnation and Hungry Jack.

After dropping 23% from the onset of the trailing 12-months to a 52-week low of $99.99 on November 6, 2017, SJM’s share price reversed direction and gained more than 30% towards its 52-week high of $131.53 on March 13, 2018. After peaking in mid-March, the share price gave back all those gains and fell to just one cent above its November low by early June 2018. However, the share price reversed trend one more time and closed on August 9, 2018 at $110.70, which was just 9% lower than one year earlier, nearly 11% above the 52-week low and even with its level from five years ago.

The upcoming quarterly dividend payout will increase from $0.78 in the previous period to $0.85 per share, a difference of about 9%. Annualized, an $0.85 payout results in a $3.40 yearly distribution amount and a 3.1% forward dividend yield, which is 33.5% higher than the company’s own 2.3% average yield over the past five years.

Additionally, the current yield of 3.1% outperforms the simple average yield of the entire Consumer Goods sector by more than 66% and is currently almost 80% higher than the average yield of all the company’s peers in the Processed & Packaged Goods industry segment.

J.M. Smucker has been distributing dividends since 1949 and has boosted its annual dividend for more than two decades. Over the past twenty years, SJM has advanced its annual dividend payout amount almost six-fold. The average annual growth rate of 9.2% over that period is in line with the company’s current quarterly dividend hike rate as well.

Unfortunately, the recent share price decline of more than 23% dropped the overall returns into a single-digit-percentage loss of almost 7%. However, over the longer-term of the last three and five years, the company rewarded its shareholders with total returns of 9% and 10%, respectively. While these total returns seem small, the company’s dividend offers steady, above-average dividend income. Plus, just a small gain in the share price as it progresses along its current uptrend could bring total returns well into the double-digit percentage territory again.


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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