Even though the market keeps dropping, dividend increases keep on coming. New dividends are being declared, too. Power Integrations (POWI) declared its first-ever quarterly dividend of 2.5 cents per share. And there are also special dividend declarations, such as Renaissance Learning's (RLRN) special cash dividend of 75 cents, which is in addition to its quarterly dividend of 7 cents per share.
Stockpickr has reviewed all the stocks that declared dividends during the last week and compiled a list of the top dividend-increasers for the week.
One of the largest increases in dividends comes from Airgas (ARG), the specialty gas distributor, which bumped up its dividend by 33% to 16 cents per share. It just reported record second-quarter earnings per share, posting a 44% increase in profits and beating analyst expectations. Revenue also increased by 15%. The stock has a P/E of 11 and a PEG of 0.68, and it yields 1.4%.
Airgas is owned by Tygh Capital Management, an investment firm founded by Richard J. Johnson and Jeff B. Curtis in 2004 that specializes in small-cap and small-mid-cap growth stocks. It looks for stocks with a minimum of 20% revenue and earnings growth potential for at least the next two years, sustainable valuations and a 20% upside to price target over a 12-month time horizon. It also owns Amphenol (APH), with a yield of 0.2%; Chicago Bridge & Iron (CBI), with a 1.5% yield; and Haemonetics (HAE), which doesn't pay a dividend.
Another dividend booster is Goodrich (GR), the defense and aviation company, which raised its payout by 11% to 25 cents per share. The company's third quarter profit increased by a huge 32%, beating analysts expectations. Goodrich also hiked its 2008 EPS estimate range to $4.90 to $5 from its prior outlook of $4.80 to $4.95. The stock has a P/E of 7, a PEG of 0.47 and a yield of 3%.
Goodrich is held by the Diversified Mid-Cap Value Investors Fund, which has a Morningstar rating of four stars and is managed by Jay Abramson. It has had an average annual return of 15.55% over the last five years. The fund also owns Questar (STR), with a 1.7% yield; CR Bard (BCR), with a 0.8% yield; and The Bank of New York Mellon (BK), with a 3.2% yield.
For more ideas, check out the Top Dividend-Increasers for the Week portfolio at Stockpickr.com.
Posted on Oct. 27, 2008
