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Category: Dividend Stock Recommendations
Dividend Stock Altria Lights Up Its Dividend
Written by
Thursday, 25 February 2010 03:08
374 Comments
Dividend Stock Altria Lights Up Its Dividend
About: Altria (NYSE: MO), Lorillard (NYSE: LO), Marlboro, Dividend Genius, dividend stock, dividend stocks, stock dividend, stock dividends Bookmark and Share
Altria Lights Up Its Dividend

Altria Lights Up Its Dividend

We have noted in the past that regardless of one's consumption of the tobacco industry's profits, these stocks are worth a look for income investors hungry for consistent dividends with robust yields. Of the three largest U.S. cigarette makers, only Lorillard (NYSE: LO) has a yield below 6.7%. Still, Lorillard yields a tidy 5.2%. On the other hand, we Altria (NYSE: MO), the biggest U.S. cigarette maker, was yielding 6.7% as of Wednesday's close and the maker of the Marlboro brand also announced on Wednesday that it will boost its quarterly dividend by 2.9% to 35 cents a share from 34 cents.

The new dividend is payable on April 9 to shareholders of record on March 15. Based on Wednesday's closing price, Altria would yield almost 7% when factoring in the new dividend. The new dividend will take Altria's payout ratio to 80% from 75%, a change the company had previously said it was targeting.

Altria, which makes 16 other brands in addition to Marlboro, is a prodigious generator of free cash, boasting a war chest of $4.27 billion at the end of 2008, making dividend increases easy for the company to digest. Of course it should be noted that with today's dividend increase Altria has now boosted its dividend in 40 of the past 43 years.

 
Tune Into A Possible Dividend Hike From Time Warner Cable
Written by
Monday, 18 January 2010 16:29
143 Comments
Tune Into A Possible Dividend Hike From Time Warner Cable

Dividend Stock for Time Warner Cable Edge Higher

Tune Into A Possible Dividend Hike From Time Warner Cable

About: (Time Warner Cable (NYSE: TWC), Time Warner Cable,  Sanford C. Bernstein,  Craig Moffett, Barron's, Dividend Genius, dividend stock, dividend stocks, stock dividend, stock dividends)
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Shares of Time Warner Cable (NYSE: TWC) finished the week sharply higher, gaining more than 8% even as the broader market slumped. The stock got a boost from a bullish piece in Barron's, which cited Sanford C. Bernstein analyst Craig Moffett as saying the cable provider is well positioned to expand in the current environment due to its presence in lucrative major markets like Los Angeles  and New York.

            Those should be positive catalysts for Time Warner Cable, but we previously talked about the stock as a dividend play and it appears that speculation was warranted. Moffett said Time Warner Cable, which currently does not pay a dividend, may instate a $1.50 a share payout early this year. That would be good for a 3.5% yield based on where the stock currently trades. Moffett also boosted his price target on the stock to $60 from $55 which closed at $46.04 on Friday.

            Moffett also noted that Time Warner Cable should have $9 per share for dividends and share buybacks in 2011 and beyond. A buyback announcement is likely to accompany any positive dividend news, the analyst added.

 
Are REIT Dividends Ready To Make A Comeback?
Written by
Monday, 18 January 2010 16:02
1 Comment
Are REIT Dividends Ready To Make A Comeback?

REIT Dividend Outlook for 2010

REIT Dividend Outlook for 2010: Are REIT Dividends Ready To Make A Comeback?

About: (REIT dividends, Vornado Realty Trust (NYSE: VNO), Annaly Capital Management (NYSE: NLY), Inland Real Estate (NYSE: IRC), Public Storage (NYSE: PSA), Hatteras Financial (NYSE: HTS), Dividend Genius portfolio)
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            One of the most discouraging aspects of the all those financial sector dividend cuts that investors had to endure last year was the fact that real estate investment trusts (REITs) were anything but off limits. In fact, once the dividend-cutting ball got rolling in the financial services space, REITs got steamrolled. Well, these companies actually steamrolled shareholders by paring or eliminating their previously fat dividends. The best case scenario was that a REIT moved from a cash dividend to a stock dividend. The worst case scenario was an all-out elimination of the payout.

            Overall, 2009 was the worst year for REIT dividends since 2000 as 59 REITs slashed or eliminated their dividends due to the financial crisis. Well, after the industry raised $33 billion in fresh capital, a dozen REITs look poised to raise their quarterly payouts, according to Bloomberg News. Vornado Realty Trust (NYSE: VNO) has gotten the REITs off to a good start this year by announcing that it will revert back to a cash dividend from a stock payout and Bloomberg said Annaly Capital Management (NYSE: NLY), Inland Real Estate (NYSE: IRC) and Public Storage (NYSE: PSA) are among the group of 12 REITs that could raise their dividends.

            Three of the 12 REITs are focused on mortgage investments while the rest are involved in the property management space. Hatteras Financial (NYSE: HTS), one of the few REITs that rewarded shareholders in 2009, is also primed for a dividend increase, Bloomberg said. Hatteras boosted its payout several times last year.

            This is certainly encouraging news for REIT investors and we've been looking for a way to include a REIT or two in the Dividend Genius portfolio. We're not committing to the sector quite yet, but a move back by the REITs to boost their dividends to pre-crisis levels would be compelling.