5 companies that raised dividends as bond yields increase

  • By Lawrence C. Strauss,
  • Barron's
  • Facebook.
  • Twitter.
  • LinkedIn.
  • Google Plus
  • Print

Rising bond yields are creating new opportunities for income-seeking investors, but companies are sweetening their payouts as well.

Bristol-Myers Squibb (BMY), PulteGroup (PHM) and CH Robinson Worldwide (CHRW) are among the companies in the S&P 500 (.SPX) that recently declared dividend increases.

Bristol-Myers plans to raise its quarterly disbursement to 41 cents a share, up from 40 cents—a 2.5% change. The stock, which yields 3.1%, is down about 12% this year, partly owing to concerns about the company’s competitive position in cancer drugs.

However, Damien Conover of Morningstar noted recently that despite some recent disappointments, Bristol-Myers continues to operate with “a wide moat,” referring to the overall strength of its operations and ability to withstand challenges from rivals.

Homebuilder PulteGroup is planning to raise its quarterly dividend to 11 cents a share, up 22% from 9 cents. The stock, which yields 1.7%, has had a negative return of 22% this year. It has been weighed down by concerns about rising interest rates and the sustainability of the housing market.

Elsewhere, CH Robinson Worldwide is upping its quarterly dividend to 50 cents a share from 46 cents. That’s an increase of nearly 9%. Shares of the logistics firm and freight shipper are about where they were at the beginning of 2018, at $87 and change. The stock yields 2.3%.

Edison International (EIX) plans to raise its quarterly dividend to 61.25 cents a share, compared with 60.5 cents currently, for a 1% rise. The stock yields 4.2%.

The company generates and distributes electric power. Its stock has returned minus 4% this year.

Also, WEC Energy Group (WEC), which generates and distributes electricity and natural gas, boosted its dividend by nearly 7% to 59 cents a share. The stock has returned about 16% recently, and it was recently yielding 3%.

All of the announcements were made late last week.

  • Facebook.
  • Twitter.
  • LinkedIn.
  • Google Plus
  • Print

For more news you can use to help guide your financial life, visit our Insights page.


Copyright © 2018 Dow Jones & Company, Inc. All Rights Reserved.
Votes are submitted voluntarily by individuals and reflect their own opinion of the article's helpfulness. A percentage value for helpfulness will display once a sufficient number of votes have been submitted.
close
Please enter a valid e-mail address
Please enter a valid e-mail address
Important legal information about the e-mail you will be sending. By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf.The subject line of the e-mail you send will be "Fidelity.com: "

Your e-mail has been sent.
close

Your e-mail has been sent.