There wasn’t a single dividend increase I was interested this past month. It seems most of the dividend increases were in partnerships which I don’t invest in. I know quite a few dividend investors like partnerships because of the higher yield offered but I don’t understand them. Since I don’t really understand how to evaluate partnerships and I haven’t taken the time to learn, I don’t invest in them. Like I said there weren’t any dividend increases by companies I personally am interested in so I decided to pick a few random increases to highlight. These are companies that I personally wouldn’t want to invest in for various reasons but you may be interested to check them out for yourself.
Ford Motor Co. (F) - Ford increased their dividend from $0.05 to $0.10 per quarter. This is an increase of 50% and gives Ford a current dividend yield of 3.09% based on a closing price Thursday January 31, 2013 of $12.95. Ford discontinued their dividend payment back in 2006 but reinstated it recently last year. Personally I wouldn’t ever be interested in owning an automobile company stock and as a dividend growth investor would not consider Ford due to their poor dividend history.
Packaging Corporation of America (PKG) - Packaging Corp produces and sells packaging materials. PKG raised their quarterly dividend from $0.25 to $0.3125 for a very nice increase of 25%. Based on the closing price on January 31, 2013 of $38.43, PKG has a current dividend yield of 3.26%. This will mark the 3rd year of increasing dividends for Packaging Corp of America. This is the kind of company I would be interested in if it had a longer dividend growth history. However, just a quick glance at the S&P stock sheet on the company and it looks like EPS has been declining every year since 2009. The biggest thing I don’t like to see besides dividend cuts is decreasing EPS. I would stay away from this company.
Wells Fargo & Company (WFC) - Wells Fargo is a retail, commercial and corporate banking company. They recently grew their dividend by 13.64% from $0.22 to $0.25 quarterly. This gives WFC a current dividend yield of 2.88% based on the January 31, 2013 closing price of $34.83. WFC has been increasing their dividend payment every year since 2010. Banking stocks used to be important members of many dividend growth stock portfolios. However, due to the banking crisis in 2008 many banks were forced to cut or discontinue their dividend payments. After watching this debacle from the sidelines, I haven’t had much interest in owning any bank stocks.
Tupperware Brands Corporation (TUP) - Tupperware not only offers their name brand food storage products but also many other products in areas such as cosmetics, toiletries and nutritional products. Recently Tupperware increased their dividend from $0.36 to $0.62 per share quarterly. This is a huge increase of 72.23%. Based on TUP’s closing price of $76.20 on Jan. 31, 2013, TUP has a current dividend yield of 3.26%. This is the 4th year in a row for a dividend increase from Tupperware. If they reach 5 years worth of increases I may consider looking into Tupperware to consider if it would be a good addition to my dividend growth portfolio or not.
As you can see there weren’t a lot of dividend increases that I was interested in this past month. I’m pretty picky about the companies I want to invest in and none of the companies from my stock watch list had dividend growth this past month.