The languishing luxury-goods market showed some new life Tuesday when leather-goods maker Coach declared its first dividend. The New York City-based company (COH) also announced that sales were stabilizing at its North American stores. The upbeat announcements boosted the stock 15%. Coach will pay 7.5 cents a common share each quarter. Disbursement is set for June 29 to investors on its books June 8. The stock goes ex-dividend June 4. Chief Executive Lew Frankfort said that the dividend, which gives the stock a 1.34% current yield, "reflects our financial strength and our confidence in Coach's business outlook." Noting that the company generates significant cash flow and has virtually no debt, he added that "we are in a position to take advantage of profitable growth opportunities, while continuing to return capital to shareholders." Profits in Coach's third fiscal quarter (ended March 31) fell 29%, to $114.9 million, or 36 cents a share, from the level a year earlier. However, volume declined less than 1%, to $739.9 million. Comparable-store sales have now risen to pre-Christmas levels in North America.

J.M. Smucker is another U.S. market leader, turning out fruit spreads, peanut butter, cooking oils, ice-cream toppings and packaged coffee. And the 112-year-old company gave its shareholders a nice treat Tuesday. Smucker sweetened its quarterly common dividend 9.4%, to 35 cents a share from 32 cents. Stockholders of record May 15 will receive the new payout June 1. The ex-date is May 13. Smucker (SJM) has paid dividends uninterruptedly since 1949. This is its 12th annual enrichment. Traded on the New York Stock Exchange, Smucker shares currently change hands around 38, giving them a 3.66% yield. Their 52-week range is 56.69 to 34.09. Besides the flagship Smucker's brand, a few of the company's other well-known labels are Jif, Crisco, Folgers, Hungry Jack and Eagle Brand. Procter & Gamble's Folgers coffee business was merged into Smucker last November via an all-stock transaction valued at $3.3 billion (shareholders got a $5 special dividend in the process). The new operation helped push up net 84% in Smucker's third fiscal quarter (ended Jan. 31). Smucker expects to earn $3.15 to $3.30 a share this fiscal year on sales of $3.6 billion to $3.7 billion. It made $3 a share in fiscal 2008 on sales of $2.5 billion.

While some major electric utilities have slashed their dividends as the recession continues to short-circuit demand and drive up costs, most power companies are expected to at least maintain their payouts or even boost them. Atlanta-based Southern Co. (SO), a Dow Jones utilities component, is doing the latter. Last Monday, it raised its quarterly common dividend 4.2%, to 43.75 cents a share from 42 cents, for a 5.95% yield. The payment, record and ex dates are June 6, May 4 and April 30. Dividends have been ongoing at Southern since 1948. This is the eighth consecutive annual increase.