No Need To Be Defensive About General Dynamics' Dividend
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.
Wednesday, 19 May 2010 18:37
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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.