These recent dividend increases announced by six different companies in various industries demonstrate their strong financial positions and sustained results for shareholders
Dividends
March 31, 2023
It hasn't been the best environment, but some companies continue to increase their dividends against the odds. Companies that increase their dividends often due so because of strong financial positions and sustained results for shareholders.
Below is a list of companies that recently raised their dividends.
Trinity Capital Inc. announced a cash dividend of $0.47 per share for the quarter ending March 31, 2023, which represents a 2.2% increase over the previous quarter. The dividend increase is due to the company's strong performance and sustained results for shareholders.
Trinity's focus remains on supporting portfolio companies, and maintaining capital reserves is crucial in this unprecedented market. The company reported undistributed earnings of approximately $60.4 million, or $1.73 per share at the end of 2022.
Trinity is differentiated in the venture debt industry by its equipment financing book, which is comprised completely of first lien loans, and it is positioned to benefit from increased deal flow through its platform.
Trinity is closely monitoring the situation regarding Silicon Valley Bank's receivership and any indirect impact it may have on the company.
Applied Materials, Inc. recently announced a 23.1% increase in its quarterly cash dividend, from $0.26 to $0.32 per share, payable on June 15, 2023. The increase reflects Applied's positive long-term view of the semiconductor market and the company's confidence in its technology leadership, broad product portfolio, and strong customer engagement.
The Board also approved a new share repurchase authorization of $10 billion, supplementing the previous authorization which had $4.7 billion remaining at the end of the first quarter of fiscal 2023.
Applied has a long history of returning free cash flow to shareholders, having initiated its dividend program in 2005 and increased the quarterly dividend paid per share at an 11% compound annual growth rate over the past 10 years.
Senior Vice President and CFO, Brice Hill, said that given the growing and diversified market for semiconductors and the predictability and resilience of Applied's revenue and profitability, the company believes its free cash flow will continue to grow over time and can support increasing the dividend at an accelerated rate and doubling the previous dividend per share over the next several years.
Williams-Sonoma, Inc. (NYSE: WSM) has announced a 15% increase in its quarterly cash dividend to $0.90 per share, payable on May 26, 2023, to stockholders of record as of the close of business on April 21, 2023.
The company's Board of Directors also approved a new $1 billion stock repurchase authorization, which replaces the current authorization.
The dividend increase is attributed to the company's record fiscal 2022 results, consistent profitability, operating cash flow, and strong balance sheet. The stock repurchase program authorizes the purchase of the company's common stock through open market and privately negotiated transactions.
With 14 consecutive years of increased dividend payouts and $3.2 billion returned to shareholders over the past five years, Williams-Sonoma is committed to maximizing returns for its shareholders.
Norwood Financial Corp (NWFL), a subsidiary of Wayne Bank, announced a 3.6% increase in its quarterly cash dividend, which will be payable on May 1, 2023, to shareholders of record as of April 14, 2023. The company's President and CEO, James O. Donnelly, attributed the dividend increase to the company's strong financial position, with total assets of $2.047 billion, loans outstanding of $1.474 billion, and total deposits of $1.728 billion as of December 31, 2022.
With 14 offices in Northeastern Pennsylvania and 15 offices in New York, Norwood Financial Corp has a solid reputation in the banking industry.
The recent dividend increase reflects the company's commitment to creating shareholder value and its prospects for future growth.
Tecnoglass, a leading manufacturer of architectural glass, windows, and associated aluminum products for the global residential and commercial construction industries, announced a 20% increase in the quarterly dividend on its ordinary shares. The dividend will now be $0.09 per share, up from $0.075 per share.
This increase reflects the earnings power of the company and confidence in its ability to consistently generate exceptional free cash flow based on the projected growth of the business.
Tecnoglass is the second largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America. The company's tailored, high-end products are found on some of the world's most distinctive properties.
The next quarterly dividend of $0.09 per share will be payable on April 28, 2023, to shareholders of record at the close of business on March 31, 2023.
Vox Royalty Corp. ("Vox") is a returns focused mining royalty company with a portfolio of over 60 royalties and streams spanning eight jurisdictions. The company recently announced a 10% increase in its quarterly cash dividend to $0.011 per common share, which will be paid on April 14, 2023 to shareholders of record as of March 31, 2023.
This dividend increase comes after a record year in 2022, which saw over 160% growth in annual royalty receipts, record annual profits, a Nasdaq listing, and the initiation of a quarterly dividend. According to Kyle Floyd, the Chief Executive Officer of Vox, the company's unique approach underpinned by differentiated asset sourcing and prudent technical due diligence continues to deliver positive financial results for investors.
The dividend qualifies as an "eligible dividend" as defined in the Income Tax Act (Canada) and is subject to customary Canadian withholding tax for shareholders that are not resident in Canada.
LevelFields sent out an alert to its members just before the stock rose by 10% in a week.
These recent dividend increases announced by six different companies in various industries demonstrate their strong financial positions and sustained results for shareholders. By examining the reasons behind the increases, their impact on shareholders, and the prospects for future growth, investors can make informed decisions.
And by knowing about the dividend increases, investors can buy before the stock prices rise and use the events to locate new investments in industries that are doing well in the current macroeconomic environment.
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