Dividend Aristocrats Week in Review for September 20, 2014: Despite Troubles, This Company Increases Its Dividend

This week, 4 Dividend Aristocrats and 1 High Yield Dividend Aristocrat announced dividend payments, including one that announced its 38th year of dividend increases.

McDonald’s Increases Dividend for 38th Year

Despite dealing with some recent setbacks, McDonald's announced their 38th year of dividend increases. Photo courtesy Rupert Ganzer/flickr.com.

Despite dealing with some recent setbacks, McDonald’s announced their 38th year of dividend increases.
Photo courtesy Rupert Ganzer/flickr.com.

Despite dealing with recent troubles, including a food scandal in China and lower than expected sales, McDonald’s (MCD, Company Summary) announced an increase to its quarterly dividend.  Shareholders of record on December 1st will receive 85 cents per share on December 15th.  This is a 4-cent – or 4.9% – increase from the prior quarterly dividend of 81 cents per share.  This is McDonald’s 38th year of dividend increases; despite having an excellent long-term dividend growth record, the increases have slowed recently.  This is the company’s 2nd straight year of quarterly dividend growth around 5%.  The annualized dividend of $3.40 gives McDonald’s stock a current yield of 3.60%.

The Clorox Company (CLX, Company Summary) will pay its latest quarterly dividend of 74 cents per share on November 14th to shareholders of record on October 29th.  In addition to producing its namesake bleach, Clorox owns several well-known brands including Pine-Sol cleaners, Fresh Step cat litter and Glad bags, wraps and containers.  4 out of 5 of the company’s brands hold the number 1 or number 2 position in their categories.  Earlier this year, Clorox increased the quarterly dividend for the 38th consecutive year, from 71 cents to 74 cents per share.  Clorox stock currently yields 3.27% and has an annualized dividend of $2.96.

Investment manager Franklin Resources (BEN, Company Summary) will pay a quarterly dividend of 12 cents per share on October 10th to shareholders of record on September 30th.  The company, which has nearly $1 trillion in assets under management, has increased dividends for 32 consecutive years.  With an annualized dividend of 48 cents per share, Franklin Resources stock currently yields 0.86%.

AbbVie Inc. (ABBV), which was spun off from Abbott Laboratories two years ago, will pay its latest quarterly dividend of 42 cents per share on November 17th to shareholders of record on October 15th.  The stock pays an annualized dividend of $1.68 and currently yields 2.84%.  As a spin-off, AbbVie inherited Abbott Laboratories’ dividend history and became a Dividend Aristocrat at its formation.  The company conducts biopharmaceutical research and markets medicine in over 170 countries.

Current High Yield Dividend Aristocrat (and future Dividend Aristocrat) Roper Industries, Inc (ROP) will pay a quarterly dividend of 20 cents per share on October 24th to shareholders of record on October 10th.  Roper Industries provides engineering solutions to niche markets, including the medical, water and energy industries.  With an annualized dividend of 80 cents per share, Roper stock currently yields 0.53%.  Roper has increased dividends for 22 straight years – since 1993 and, as a member of the S&P 500, will become a Dividend Aristocrat once it has increased dividends for 25 consecutive years – at the beginning of 2017.

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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