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Wisconsin Energy (NYSE:WEC) declares $0.42/share quarterly dividend, 7.6% increase from prior dividend of $0.39.
Forward yield 3.08%
Payable March 1; for shareholders of record Feb. 13; ex-div Feb. 11.
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Makes me wonder why a dividend growth investor would touch any utility at the worst possible interest rate environment in a generation. Let interest rates go anywhere close to a normalized level and these stocks will be at half their current value. IMO, where we are now, for a DG investor, means buying companies that have low debt, steady earnings and dividend growth, have multinational exposure, which will do well even when interest rates start to move higher, and finally, will be able to generate inflation beating growth in all but the worst economic slow downs. In a nut shell, the dividend growth investor should mostly seek out dividend paying stocks that are also great total return candidates.
Note: I sold my utilities when yields dropped much below 5%. Actually started selling calls until they eventually got exercised. Won't return to utilities until yields generally rise back above that level. Would consider SO at a dip to under $40, but definitely not before.
Alex
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Schlumberger (NYSE:SLB) declares $0.50/share quarterly dividend, 25% increase from prior dividend of $0.40.
Forward yield 2.58%
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01-15-2015, 08:01 PM
(This post was last modified: 01-15-2015, 11:23 PM by hendi_alex.)
I added SLB to my daughter's account today. Also added ESV whose dividend will likely be cut or eliminated, but they pay out lots of cash when earnings are strong. These are two plays in the brutalized oil service sector and IMO are the two best positioned and/or strongest of the group. As with everything oil, the lows are probabably a good bit further down.
Edited: I also see where the announced cutting 9,000 jobs or 8% if their work force, because of the expected slow down in the E&P space. So while this quarter looks good, harsh numbers are on the way in coming quarters, numbers that will probably provide a much better entry in the future.
Alex
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January 5th I dumped my Realty Income shares at $49.33, capturing a 30%+ capital gain, figuring that settling for an under 5% yield for a REIT is beyond ridiculous. Don't regret selling, but the current price shows that the market is willing to push ridiculous to almost unimaginable places. I'll rebuy O sometime when its yield moves north of 5% again, but may wait on 6% or better yield before taking a fresh plunge. My earliest entry point will be somewhere south of $44 but will perhaps wait for south of $40. When that time comes, the prices will likely come crashing down very quickly, as REIT prices are so strongly affected by Fed rate increases.
Alex
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01-23-2015, 08:44 PM
(This post was last modified: 01-23-2015, 08:45 PM by Dividend Watcher.)
NORFOLK, Va., Jan. 23, 2015 /PRNewswire/ -- Norfolk Southern Corporation (NSC) today announced that its Board of Directors voted to increase the regular quarterly dividend on the company's common stock by 4 percent, or 2 cents per share, from 57 to 59 cents per share. The increased dividend is payable on March 10 to stockholders of record on Feb. 6.
Disappointing.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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That does sound really disappointing coming from a railway company. I am expecting an announcement from Canadian National next week. Hopefully they'll do better than 4%.