Div­i­dend hikes you should not miss

Financial Mirror (Cyprus) - - FRONT PAGE -

This past week was a rough one for the mar­kets. Both the Dow Jones In­dus­trial Aver­age and the S&P 500 hit new all-time highs, only to sell off hand­ily from the peak be­fore re­cov­er­ing late on Fri­day. It is now called a stock picker’s mar­ket rather than a rag­ing bull mar­ket, and the be­lief is that in­vestors will con­tinue flock­ing to­ward com­pa­nies that are in­creas­ing div­i­dends and those pay­ing safer big div­i­dends. Here are some div­i­dend hikes from the past week that in­vestors should know about, ac­cord­ing to 247wallst.com: Amer­i­can Ex­press raised its div­i­dend early this past week. It needs to raise its pay­out by even more to get back on par. This is a DJIA com­po­nent and its div­i­dend hike is go­ing to $0.26 per share from $0.23, for a yield of only 1.2% af­ter the hike oc­curs, among the worst yields of the Dow.

Gen­tex Corp. may sound like a biotech out­fit, but it makes the dim­ming rear-view mir­rors. A 14% div­i­dend in­crease to $0.16 per share per quar­ter from $0.14 is a com­mit­ment that it sees con­tin­ued growth. Gen­tex’s new div­i­dend will be more than 2.2%.

Hewlett-Packard re­mains in a long-run turn­around plan un­der the guid­ance of CEO Meg Whit­man. It an­nounced a reg­u­lar div­i­dend of $0.16 on Wed­nes­day, up from a prior $0.145 per share. With no real growth ex­pected this year or next and with so many people hav­ing been let go, in­vestors may have doubted if this div­i­dend hike would come. The new yield is al­most 2%.

Macy’s an­nounced it would hike its pay­out by 25% to $0.3125 per share per quar­ter. With shares clos­ing at $58.07 and its stock not get­ting much higher than $60 of late, it is do­ing what it can to keep in­vestor in­ter­est alive. The new div­i­dend yield will be al­most 2.2%, rel­a­tively high for re­tail stocks. South­west Air­lines keeps re­turn­ing cap­i­tal to its share­hold­ers, with a hike of 50%.

The pay­out jumped to $0.06 per share from $0.04, giv­ing it north of a 1% yield now. Air­lines have not been the big­gest div­i­dend pay­ers in the mar­ket, but the con­sol­i­da­tion via merg­ers and the abil­ity to charge more and more fees (and higher ticket prices) is chang­ing that.

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