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Dividends4Life (45.58)

This Largely Unknown Tech Stock Just Announced A HUGE Cash And Dividend Increase



September 10, 2012 – Comments (3) | RELATED TICKERS: EPIQ , VZ , BRC

Tech companies are not usually known for dividend increases. Historically, most of them would pour every dollar back into the business to meet growth expectations. When growth slowed, they would purchase their stock with excess cash and eventually pay a dividend when all other uses of cash were extinguished. Not all tech companies follow this pattern...

Epiq Systems (EPIQ) is a software and services company that deals with bankruptcy claims, assets, financial records, and other data associated with liquidations and reorganizations for the legal profession. In July 2010 it paid its first dividend at $0.035 per share. From there it nearly doubled its original dividend to $0.065 per share. An 85% increase in 2 years is impressive, but EPIQ didn't stop there.

In the company's latest press release it stated, "Net cash provided by operating activities has continued to be exceptionally strong for the company, up over 300% year-to-date at June 30, 2012 compared to the prior year." With this much available cash investors would generally expect a larger dividend, and the company didn't disappoint them.

On September 6th the EPIQ increased its quarterly dividend an additional 38% to $0.09 cents per share. The dividend is payable on November 27, 2012, to stockholders of record at the close of business on November 9, 2012. The yield based on the new payout is 2.8%. Year-to-date, the quarterly cash dividend per share has increased 80% as compared to the dividend of $0.05 cents per share paid in the first quarter of 2012.

Below are some other companies increasing their cash dividends during the last week:

Verizon Communications Inc. (VZ) provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. September 6th the company increased its quarterly dividend 3% to $0.515 per share. The dividend is payable on Nov. 1, 2012, to shareholders of record at the close of business on Oct. 10, 2012. This is the sixth consecutive year that the company has raised its dividend. Increases were 2.6 percent in each of the past two years. The yield based on the new payout is 4.7%.

Brady Corporation (BRC) manufactures and markets identification solutions and specialty products that identify and protect premises, products, and people. September 6th the company increased its quarterly dividend 2.7% to $0.19 per share. The dividend is payable October 31, 2012 to shareholders of record at the close of business on October 10, 2012. This dividend represents the 27th consecutive annual increase in dividends. The yield based on the new payout is 2.7%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long VZ in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

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3 Comments – Post Your Own

#1) On September 10, 2012 at 12:04 PM, ath002 (< 20) wrote:

Dear Dividends4life,

Thanks for your msgs which I enjoy following.

Would like to ask U a tough question.

 My boys turn 15 and 12 this month and they have asked me to give them stocks as their birthday present.

 I would like to ask you, if you can pick one of the stocks in your Dividends holdings, which would it be. Something they can hold onto for a while?

Apologies for the tough question and thank you in advance for your thoughts.


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#2) On September 10, 2012 at 8:05 PM, HarryCaraysGhost (75.79) wrote:

Luis, I know you did'nt ask me...but I hope you don't mind me chiming in with my two cents.

I wrote a blog about a similar matter not long ago-

My blogs often become derailed, but I like it that way. My main motto for investing is "if your not having fun while investing your probably doing it wrong"

The main point is to have your boys involved in the selection. That's what my Father did with me and it led to a lifelong interest in investing. He would show me the statements and how the dividend was buying more and more shares.

As I got older we would sit in the basement having a few beers just b'sing about stocks and his 401K. I actually warned him about the Dot.Com bubble.

So it can be a bonding experience (to this day everytime we see each other the topic always turns to Mr Market at some point)


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#3) On September 12, 2012 at 5:44 AM, ath002 (< 20) wrote:

Hi Harry,

 Apologies, have been away only saw your post now.

Thanks for the advice, I am doing everything to interest the boys in investing, sort of making their money work hard for them.

Thanks for the good advice,


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