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Category: Market Commentary
Nordstrom Spruces Up Its Dividend
Nordstrom Spruces Up Its Dividend

High-end retailer Nordstrom increase to its quarterly dividend by 25%

High-end retailer Nordstrom increase to its quarterly dividend by 25%

High-end retailer Nordstrom (NYSE: JWN) is known for its fancy stores that feature scores of pricey apparel, fragrances and footwear more than it is for being a stock that income investors flock to. Nordstrom may be trying to change that with the announcement that will boost its quarterly dividend by 25% to 20 cents a share from 16 cents. The new dividend is payable on June 15th to shareholders of record on May 28th.

            Last week, Seattle-based Nordstrom said its first-quarter profit jumped 43%, but its full-year outlook disappointed investors. When factoring in the new payout, Nordstrom shares would yield about 2.1%, a fair amount above the 1.6% the shares currently yield. Analysts expect Nordstrom to earn $2.62 a share this year and $3.05 a share next year, so dividend coverage appears sufficient.

            This is Nordstrom's first dividend hike 2007, but the payout has almost doubled since 2006.

 
General Dynamics Announce Increase in Stock Dividends
General Dynamics Announce Increase in Stock Dividends

No Need To Be Defensive About General Dynamics' Dividend

About: General Dynamics (NYSE: GD), General Dynamics, Gulfstream jets, Department of Defense contractor Bookmark and Share
General Dynamics Announce Increase in Stock Dividends

Defense contractor General Dynamics (NYSE: GD), the maker of nuclear submarines, Navy destroyers and Gulfstream jets, said it will raise its quarterly dividend by 10.5% to 42 cents a share from 38 cents. General Dynamics is a steady dividend raiser with annual increases for over 15 years.

With the latest increase, General Dynamics' dividend has nearly quadrupled since 1999.

The new dividend is payable on May 7 to shareholders of record on April 9. General Dynamics' current payout ratio is 24%.

Based on Wednesday's closing price, General Dynamics will yield around 2.3% when factoring in the new dividend.

The shares currently trade at just 10.4 times forward earnings and are up 7% year-to-date.

Thus far in 2010, nearly 50 members of the S&P 500 have boosted their dividends.

More than 20 companies, including stocks outside of the S&P 500, have raised their payouts in the last two weeks alone.

 
Dividend Stock Wal-Mart To Hike Dividend Payout
Dividend Stock Wal-Mart To Hike Dividend Payout

Wal-Mart Continues Tradition Of Dividend Hikes

About: Wal-Mart (NYSE: WMT), walmart, Dow yield, dividends, annual dividend Bookmark and Share
Dividend Stock Wal-Mart To Hike Dividend Payout

Wal-Mart (NYSE: WMT), the world's largest retailer, has joined the parade of Dow stocks to raise their dividends in recent weeks by announcing an 11% increase to its annual dividend. Wal-Mart will now pay $1.21 a share for 2010 up from $1.09 a share in 2009.

In a statement, Wal-Mart said it will return $4.5 billion to shareholders this year.

Arkansas-based Wal-Mart certainly has the cash to raise its dividend. Last month, the company said free cash flow rose to $14.1 billion in 2009 from $11.6 billion in 2008.

Wal-Mart boosted its dividend by 15% in 2009 and has increased its payout every since paying its first dividend in 1974.

The new dividend is payable on April 5th to shareholders of record on March 12th.

Based on Thursday's closing price, Wal-Mart shares would yield 2.24% when factoring in the new payout.

That's above the current yield of 2%, but below the average Dow yield of 2.8%.