Investors pay attention to dividend increases because they're an important indicator of a company's financial health and long-term prospects.
Dividends
February 23, 2023
Investors pay attention to dividend increases because they're an important indicator of a company's financial health and long-term prospects. Dividend increases can signal that a company is generating strong earnings and cash flow and that its management team is confident in the future growth prospects of the business.
Telecommunications services provider, Telephone and Data Systems, Inc. (TDS) has declared its Q1 2023 dividends on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares. TDS will pay a daily dividend of$0.185 per Common Share and Series A Common Share. TDS has increased its common share dividend for the 49th successive year. As of December 31, 2022, TDS employed, 300 people.
Bloomin' Brands, Inc. (BLMN) reported a 71 increase in its daily cash dividend, raising it to $0.24 per share outstanding on March 15, 2023, to stockholders of record as of March 1, 2023. The company also authorized a new$ 125 million share repurchase program, reflecting its confidence in the strength of its cash flows. The increase in dividend and share repurchase program is supported by the company's strong fiscal performance in 2022, with profits and margins well above pre-pandemic levels despite significant inflation. The company's Brazil operations entered a court ruling affirming its eligibility for a temporary exemption from civil income tax and civil value-added tax on revenues, generating an approximate benefit of $17 million to income from operations in 2023. The company's 2023 fiscal outlook includes the addition of a 53rd week at the end of financial 2023 and the benefits from the Brazil tax legislation.
Analog Devices, Inc. (ADI) is a global semiconductor company. The company recently increased its quarterly dividend from$0.76 to $0.86, a 13% increase. The increase is effective with the dividend outstanding on March 8, 2023, to shareholders of record as of the close of business on February 27, 2023. ADI has a highly profitable business model that has generated positive free cash flow for 26 successive years. The company aims to return 100 of free cash flow to shareholders through both dividend payments and share repurchases. This marks the company's 20th increase in the last 19 years, and it has paid a dividend for 76 successive quarters, totaling further than$ 9 billion of cash returned to shareholders through dividends.
KBR Inc., a Houston- based engineering and construction services company, announced on February 16, 2023, that its board of directors has approved an a 12.5% increase to its regular dividend. This decision came after the company's strong Q4 and financial 2022 results, which saw organic revenue growth, enhanced margins, and cash conversion above expectations. KBR has also been carbon neutral since 2019 and continues to make progress on its 2030 functional net-zero carbon target. The company has a backlog and options of$19.8 billion and had bookings and options of$8.2 billion during the year. The dividend increase reflects the company's positive earnings momentum and its confidence in its 2025 targets.
Banc of California ( BANC) announced an increase in their daily cash dividend from$0.06 to $0.10 per share, a 66.7% increase. The dividend will be outstanding on April 3, 2023, to stockholders of record as of March 15, 2023. The bank also authorized a $35 million share repurchase program, which expires in February 2024. The increase in the dividend and share repurchase program reflects the company's strong financial and capital position. Banc of California is a bank holding company with $9.2 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A., which provides banking and lending solutions throughout Southern California. The company is committed to improving the communities where they operate through supporting organizations that provide financial literacy, job training, small business support, and affordable housing. The announcement of the dividend increase and share repurchase program reflects positively on the company's dividend prospects.
North American Construction Group Ltd. (NOA) has announced Q4 2022 results, which showed consistent operating conditions and equipment utilization of 75, resulting in the company posting financial quarterly records for EBITDA, EBIT, earnings per share, and free cash flow. On February 14, 2023, the company's board of directors approved a 25 increase in the dividend rate, from $0.32 per annum to$0.40 per annum. The dividend increase is attributed to the strong financial performance in Q4, which saw a combined revenue of$320.1 million compared to $234.9 million in the same period last year. The revenue growth was driven by advanced equipment utilization and an increase in equipment hours. The company's net share of the revenue from equity consolidated common ventures was $86.7 million, a record quarter primarily generated by the Indigenous common ventures and the Fargo-Moorhead project. NOA's CEO, Joseph Lambert, expressed confidence in the company's capability to capitalize on the opportunities before it, stating that the NACG team is looking forward to carrying this momentum into 2023.
AptarGroup, Inc.( ATR) reported a net income of$ 59 million for the quarter that ended December 31, 2022, a 2 increase over the previous time, with core sales increasing by 4. Aptar's Pharma segment achieved strong growth due primarily to increased volumes in the consumer healthcare and prescription divisions driven by nasal saline, decongestant, and emergency medicine dispensing solutions. The Beauty Home segment also benefited from volume growth in prestige fragrance and skincare solutions, along with continued inflationary price pass-through. The company announced the strategic realignment of two of its three segments. AptarGroup has paid an increasing periodic total dividend for 29 successive years, with the company increasing the quarterly dividend to $0.40 per share, up from $0.38. The increase in the dividend is due to Aptar's strong financial performance, growth prospects, and commitment to providing returns to shareholders. Based on the company's performance, it's likely to continue to pay and increase its dividend in the future.
Olympic Steel Inc. (ZEUS) is a commanding public metals service center. The company increased its regular daily cash tip from$0.09 to$0.125 per share, outstanding on March 15, 2023, to shareholders of record on March 1, 2023. The increase reflects the company's extraordinary performance over the past two years. Olympic Steel has paid a regular daily dividend since March 2006. The company's CEO expects to maintain the daily dividend of$0.125 subject to Board approval. The company is focused on the direct sale of processed carbon, coated and pristine flat-rolled sheet, coil and plate steel, aluminum, tin plate, and metal- ferocious branded products. Olympic Steel operates from 44 facilities in North America.
Cisco, a multinational technology company, has declared a 3 increase in its quarterly dividend. The company will pay $0.39 per common share to stockholders of record as of April 5, 2023. The increase reflects Cisco's cash flow generation and its commitment to shareholder returns. The move came after Cisco announced its Q2 FY 2023 results, which showed a 7 increase in revenue year-over-year, with product revenue up by 9 and software subscription revenue up by 15. The company's CFO, Scott Herren, said they're raising their full-year outlook based on the growing recurring revenue base and RPO, healthy backlog, and improvements in supply. Cisco's CEO, Chuck Robbins, said their strong performance in Q2 suggests that FY 2023 is shaping up to be a great year.
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