Dividend Aristocrats Week in Review for May 10, 2014: PepsiCo, Cardinal Health Show Double Digit Dividend Growth

PepsiCo announced this week that they are increasing the dividend payout for the 42nd consecutive year. Photo courtesy Don O'Brien via flickr.com.

PepsiCo announced this week that they are increasing the dividend payout for the 42nd consecutive year.
Photo courtesy Don O’Brien via flickr.com.

Two Aristocrats announced double-digit percentage increases in their dividends, while four other Aristocrats announced regular dividend payouts this week.

Cardinal Health (quote, company overview) announced a 4-cent, or 13.2% increase in its quarterly dividend.  The new dividend is 34.25 cents quarterly, or $1.37 annually per share.  The increase is a bit lower but consistent Cardinal Health’s recent dividend growth.  Cardinal Health’s 5 year compounded annual dividend growth rate (CADGR) is 16.97%.  Cardinal Health provides pharmaceuticals and medical products and services to hospitals, surgery centers, clinical laboratories, physician offices, and other health care facilities.  The new dividend is payable on July 15th to shareholders of record on July 1st and yields 2.13% on an annual basis at current prices.

Soft drink, beverage and snack company PepsiCo (quote, company overview) confirmed their prior intention to increase the company’s dividend for the 42nd consecutive year.  The new quarterly dividend will be 65.5 cents per share, up from 56.75 cents.  The new dividend is payable on June 30th to shareholders of record on June 6th.  The 15.4% increase is much greater than the company’s 5 year CADGR of 6.30% and in line with, but slightly larger than PepsiCo’s 10 year CADGR of 13.52%.  At an annual rate of $2.62 per share, PepsiCo currently yields 3.01%.

Four Aristocrats – including two global industrial technology companies – announced regular dividend payouts:

Sigma-Aldrich Corporation (SIAL), which develops, manufactures and provides biochemical and organic chemical products, kits and services to industry, health sciences companies and researchers, announced a regular quarterly dividend payment of 23 cents per share.  The dividend will be paid on June 13th to shareholders of record on May 30th.  Sigma-Aldrich increased their annual dividend for the 33rd consecutive year at the beginning of 2014 when they raised the quarterly dividend by 1.5 cents, or 7.0%, from 21.5 cents.  Sigma-Aldrich stock currently yields 0.95%.

Water and energy technology company Ecolab (ECL) will pay a quarterly dividend of 27.5 cents per share on July 15th to shareholders of record on June 17th.  This continues Ecolab’s record of 77 consecutive years of dividend payouts.  Ecolab currently yields 1.05%.

Diversified global manufacturing and technology company Emerson (EMR) which produces, among other things, industrial electrical equipment announced a regular quarterly dividend payment of 43 cents per share, to be paid on June 10th to shareholders of record on May 16th.  Emerson last increased its dividend payment by 4.9% (from 41 cents per share) in December 2013; the company is expected to announce the next dividend increase in November 2014.  The stock currently yields 2.56%.

Leggett & Platt (LEG), manufacturer of residential and business furnishings, announced a regular quarterly dividend payment of 30 cents per share.  The dividend is payable on July 15th to shareholders of record on June 13th.  Leggett & Platt has increased its dividend payments for 43 consecutive years and last increased its quarterly dividend in October 2013 by 3.4%, from 29 cents to 30 cents.  The stock currently yields 3.59%.

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