Dividend Aristocrats Week in Review for August 23, 2014: Auto Part and Paint Manufacturers Announce Regular Dividends

Four Dividend Aristocrats and three High Yield Dividend Aristocrats announced regular dividend payments this week:

A Replacement Auto Part Manufacturer Announces Its Latest Dividend Payment

Automotive replacement part manufacturer Genuine Parts Company (GPC) will pay a quarterly dividend of 57.5 cents per share on October 1st to shareholders of record on September 5th.  Genuine Parts has one of the longest dividend growth records of all publicly traded companies, with increases in the annual dividend since 1957.  The company traditionally announces dividend increases in the first quarter of the calendar year and increased the dividend by 7%, from a quarterly rate of 53.75 cents per share at the beginning of 2014.  The current annualized rate of $2.30 translates into a yield of 2.62%.

Medical technology firm Medtronic, Inc. (MDT, Company Summary) will pay its latest quarterly dividend of 30.5 cents per share to investors on October 24th to shareholders of record on October 3rd.  Medtronic has increased dividends for 37 years and increased the dividend earlier this year from an annualized rate of $1.12 to the current annualized rate of $1.22.  The stock has a current yield of 1.92%.

Lowe’s Companies (LOW, Company Summary), a home improvement retailer, will pay a dividend of 23 cents per share on November 5th to shareholders of record on October 22nd.  Lowe’s is one of several Dividend Aristocrats that have doubled their dividend payout over the last 5 years; back in 2009, Lowe’s paid a total of 35 cents per share while this final dividend payment of 2014 brings the total payout for the year to 82 cents.  Lowe’s last increased the dividend in the 3rd quarter of 2014, raising the quarterly payout from 18 cents to the current rate of 23 cents per share.  With an annualized dividend rate of 92 cents per share, the stock currently yields 1.75%.

Food and food equipment distributor Sysco Corporation (SYY, Company Summary) announced its next regular dividend payment of 29 cents per share this week, payable on October 24th to shareholders of record on October 3rd.  The company has increased dividends for 38 straight years and in the first quarter of 2014 increased the quarterly dividend by a penny, or 3.6%.  The stock’s current yield is 3.09% and the annualized dividend is $1.16.

Three High Yield Dividend Aristocrats Announce Regular Dividend Payments

Paint manufacturer Valspar Corporation has increased dividends for 36 years. Photo courtesy Charles & Hudson/flickr.com.

Paint manufacturer Valspar Corporation has increased dividends for 36 years.
Photo courtesy Charles & Hudson/flickr.com.

Paint and coatings manufacturer Valspar Corporation (VAL) will pay a regular quarterly dividend of 26 cents per share on September 15th to shareholders of record on September 2nd.  Valspar has increased dividends for 36 consecutive years.  In December 2013, Valspar increased its dividend from 23 cents by 3 cents, or 13%.  I expect Valspar to announce its 37th straight year of dividend increases this November.  With an annualized dividend rate of $1.04, the stock currently yields 1.30%.

Chicago-based telecommunications provider and High Yield Dividend Aristocrats Index member Telephone and Data Systems, Inc. (TDS) will pay a quarterly dividend of 13.4 cents per share on September 30th to shareholders of record on September 15th.  Telephone and Data Systems provides wireless, cable and wireline broadband, TV and voice services through its business units U.S. Cellular, TDS Telecom, OneNeck IT Solutions, and Baja Broadband.  The company announced its 40th consecutive year of dividend increases earlier this year when it raised the quarterly dividend by 5.1% from 12.75 cents per share.  TDS’s stock currently yields 2.09% and I expect the next dividend increase to be announced in February 2015.

Finally, insurance holding company Old Republic International Corporation (ORI) has paid dividends for 73 years and increased them for the last 33 years.  The company, which operates in primarily the commercial lines market, will pay a dividend of 18.25 cents per share on September 15th to shareholders of record on September 5th.  With an annualized dividend of 73 cents per share, the stock currently yields 4.84%.  The company announced and paid out its most recent dividend increase in the first quarter of this year, when they raised the quarterly dividend by 1.4% from the prior rate of 18 cents per share.  I expect the next dividend increase to be announced in February 2015.

There are over 50 S&P 500 companies that have increased dividends for more than a quarter century.  See the full list of S&P Dividend Aristocrats.

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