There are three stocks in particular that raised the dividend payouts this week: United Parcel System (NYSE: UPS); NextEra Energy (NYSE: NEE); and Cisco Systems (NASDAQ: CSCO). These three big companies have are large percentage of shareholders that are very happy to see more cash returned. Let’s take a closer look at this new distributions and well as the performance of the above mentioned companies.
Since 2011, this tech company has been rewarding investors with quarterly dividends and the most recent increase of $0.21 per share means that the distribution will now be 2.9%, which is low when compared to the trading activity of the stock in the last year, but it more than most stocks are paying.
This company is riding the high wave at the moment because profits are up and so is revenue, which rose to 11.9 billion dollars, a seven percent increase. This was enough of an increase to send the shares to a highest they have been in the last seven years. The new dividend rate will take effect late in April.
Cisco Systems, Inc. (NASDAQ:CSCO) is currently trading at $29.33 per share and they have a market capital of 151.50B. The company is 77% institutionally owned and they have a 52 week outlook that ranges between 21.27 and 29.58.
This company loves to raise their distributions and they have been doing it, consistently, for two decades.
The fourth quarter reports showed an increase that was in the double digits and revenue increased by 29%, while profits loomed around 458 million, which is a ten percent increase.
If this company can stay on course, more dividends are inevitable. The adjusted earnings per share are estimated to range between $5.75 and $6.25 as 2016 rolls around, which is a significant increase from the current year which ranges between $5.40 and $5.70.
NextEra Energy Inc. (NYSE:NEE) is 75% institutionally owned and they have a current market capital valuation of 47.08 billion dollars. The 52 week outlook ranges between 8.81 and 112.64. Currently the stock prices for this company are $105.61 each.
Investors can expect to see this new increase take effect mid-March.
United Parcel Service
UPS is proud to boast that quarterly dividends have not decreased in 40 years and the most recent nine percent increase happened just a few days ago.
This past holiday season, operating expenses rose to 15 billion dollars, a 16% increase. This was partly due to the extra employees required to handle the extra holiday volume.
The top line only rose six percent and because of this, they generated income was only 453 million dollars.
UPS plans to charge customers more during peak seasons, but this type of strategy comes with a risk of having the top and bottom lines squeezed. But the dividends should not come under fire, as the company has billions of dollars in free flowing cash and investors should feel secure in continued payouts.
United Parcel Service, Inc. (NYSE:UPS) has a market capital of 92.66B and they are 70% institutionally owned. The 52 week outlook for the company ranges between 94.05 and 114.40. Stock prices are currently trading at $101.97 per share.