increase its annual dividend rate by 20 percent, to 60 cents a year from 50 cents.

Many investors probably haven't heard of PPD, but just about any executive in the pharmaceutical, biotech or medical-device industry has. And the company's confidence in its long-term outlook led it Tuesday to boost its dividend. The Wilmington, N.C., company is one of the world's largest contract-research organizations. It helps its clients arrange clinical trials of new products and also develops its own compounds in partnership with other firms. The new payout will bring PPD's quarterly dividend to 15 cents a share from 12.5 cents, producing a 3% yield on its shares (PPDI). Disbursement is scheduled for June 29 to investors on the books June 15. The stock goes ex-dividend June 11. The hike comes about a month after PPD had trimmed its 2009 revenue and profit guidance. "This increase...demonstrates our view of the long-term prospects of our business," declared Chief Executive Fred N. Eshelman, who founded PPD in 1985. "We remain fully focused on executing on behalf of our clients and driving long-term value for PPD shareholders." Payouts were initiated in 2005 and have been enhanced annually.

like the dividend

Great company & recently boosted dividend

25%

Pharmaceutical Product Development is an outsourcing company that helps drug makers arrange clinical trials of new products. North Carolina-based PPD has raised its quarterly dividend 25%, as planned in September, to 12.5 cents a share, from a dime. The respective payment, record and ex dates are Dec. 29, Dec. 15 and Dec. 11. Dividends were initiated in 2005 at a split-adjusted 2.5 cents a share. The stock trades on Nasdaq at roughly half its 52-week high of 49.39 and yields 2.13%. September-quarter diluted earnings per share climbed 34%, to 43 cents, on a 12% revenue advance, to $398.5 million. The backlog totaled $3 billion, up 20%.

Terranova said PPDI has a growth rate 18%, P/E 23 and debt less than 1%. PPDI's Clients include pharmaceutical, biotech, and medical device companies.

25%

Lately, Henwood has added Pharmaceutical Product Development (PPDI), an outsourcing company that helps drug companies put together clinical trials for product testing. (PPDI). - Raymond James

Goldman said it is downgrading Pharmaceutical Product Development (PPDI) to Neutral from Buy based on premium valuation, limited potential for margin expansion, and see catalysts as already reflected in shares. Note 25% gain since added to Goldman's buy list in Feb 2007. Price target lowered to $51 from $55.