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Dividends4Life (27.34)

PetSmart (PETM) Announces a 233% Dividend Increase

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June 29, 2009 – Comments (3) | RELATED TICKERS: DRI , DUK , PETM

In this environment many income investors are happy to see any dividend increase. Not all companies are hiding behind the economic downturn and short-changing their dividend increases. To the contrary, PetSmart (PETM) after an extensive analysis of expected free cash flows showed confidence in their our operating plan with a generous dividend increase and share repurchase plan.

PETM operates more than 1,100 pet stores in the U.S. and Canada, offering pet food, supplies and services. Tuesday the company PETM announced an increase its quarterly dividend of 233% to $0.10/share. In addition, its Board of Directors authorized a $350 million stock purchase plan.  In a statement the company said it plans to continue to grow the business by opening about 40 stores per year for the foreseeable future. At the new rate, the stock is yielding 1.92%.

Below are some other companies rewarding their shareholders with increased cash dividends:

Del Monte Foods (DLM) is one of the largest producers, distributors and marketers of premium quality branded food and pet products for the U.S. retail market. The company also produces, distributes and markets private label food and pet products. Recently, DLM increased its quarterly dividend 25% to $0.05/share.  The dividend is payable on August 6, 2009 to stockholders of record as of the close of business on July 23, 2009.  At the new rate, the stock is yielding 2.22%.

Duke Energy (DUK) provides service to about 3.9 million electric customers in North Carolina, South Carolina, Indiana, Ohio and Kentucky, and 500,000 gas customers in Kentucky and Ohio. Tuesday, the company raised its quarterly dividend 4.3% to $0.24/share. “Despite challenging economic conditions, Duke Energy continues to successfully implement its business strategy. We are pleased to share this success with our investors,” said James E. Rogers, chairman, president and CEO.  At the new rate, the stock is yielding 6.67%.

Darden (DRI) operates the Red Lobster, Olive Garden, Bahama Breeze and Seasons 52 chains, as well as the LongHorn Steakhouse and Capital Grille chains. On June 23rd the company announced a 25% increase in its quarterly dividend to $0.25/share.  At the new rate, the stock is yielding 3.13%.

Hatteras Financial (HTS) is an externally managed mortgage real estate investment trust (REIT) formed to invest in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by a U.S. government agency. HTS on Tuesday increased its quarterly dividend by 4.71% to $1.10/share. The dividend will be paid on July 24, 2009, to stockholders of record on July 6, 2009, with an ex-dividend date of July 1, 2009. At the new rate, the stock is yielding 16.52%.

Though it may seem that most companies are cutting their dividends, many continue to show strength and increase their dividends. For stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

(Photo Credit) distributes and markets private label food and pet products. Have future posts delivered to you for free!

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TAGS: DLM, DRI, DUK, HTS, PETM

3 Comments – Post Your Own

#1) On June 29, 2009 at 9:16 AM, lemoneater (82.66) wrote:

I'm glad that Petsmart is doing well. They certainly offer a pleasant shopping experience to the consumer not to mention their pet adoption program is well run. My local Petsmart has very helpful employees who obviously love pets and are happy to talk shop when they have time.

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#2) On June 29, 2009 at 10:20 AM, nottheSEC (79.93) wrote:

 Dividends4Life I look forward to your blogs. Kudos once again for info and writing style.

Ditto on the Petsmart. I would say long term they are a sound bet as a full service pets place. Today though I would choose then in a market basket with PETS(petmeds.comvet meds for cheap) and WOOF(Pet diagnostic equiptment) and a rather small bet on penny HSKA( vaccines).

I say this because arguably and sadly money spent on pets is subject to discretationary spending. This basket does not fit into your dividend style but gives you a broad spectrum representing all thing  Animal companions.

 All best and Thanks ..J

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#3) On June 29, 2009 at 10:29 AM, nottheSEC (79.93) wrote:

.... Today though I would choose then in a market basket with PETS(petmeds.comvet meds for cheap) and WOOF(Pet diagnostic equiptment) and a rather small bet on penny HSKA( vaccines).

Oh IMHO on the above a market basket should NOT include HSKA(Heska) after review of their financials they haven't a chance.

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