Companies from various industries have announced dividend increases, including a health services provider, a tobacco manufacturer and distributor, and an engineering and construction company
March 1, 2023
This article highlights the top nine dividend increases last week. Dividend increases matter to investors because they indicate the company's financial strength and its commitment to returning capital to shareholders.
Companies from various industries have announced dividend increases, including a health services provider, a tobacco manufacturer and distributor, an engineering and construction company, a provider of marketable HVAC and electrical contracting services, an oil painting and gas drilling company, and a global sustainable design and engineering leader.
The companies' strong fiscal performance, cash flow generation, and outlook for uninterrupted growth are some of the reasons behind the dividend increases.
Civitas Resources, Inc. has announced its fourth quarter and full-year 2022 financial and operating results, along with its 2023 outlook. The company's board of directors has approved a dividend of $2.15 per share, outstanding on March 30, 2023, reflecting a 10% increase sequentially from $1.95 per share in the previous quarter. The dividend comprises a base dividend of $0.50 per share and a daily variable dividend of $1.65 per share.
The company has also announced that it plans to repurchase up to $1 billion of its common stock, effective through December 31, 2024. Civitas expects to distribute over $600 million in dividends in 2023, representing further than 60% of the expected free cash flow.
The CEO, Chris Doyle, cited the company's strong fourth-quarter results despite the cold temperatures and expressed the company's intention to maximize capital efficiency while generating significant free cash flow in 2023, which it plans to return to shareholders through dividends and the newly authorized share repurchase program.
Turning Point Brands, Inc., a manufacturer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients, announced an 8% increase in its regular daily dividend to $0.065 per common share outstanding on April 7, 2023.
The increase in dividend payout could be attributed to the company's strong financial performance, as it reported record net sales of $123.3 million in Q3 2022. Additionally, TPB's recent acquisition of Solace Technologies and partnership with Canopy Growth Corporation could provide growth opportunities in the emerging NewGen segment.
The stock and its dividend prospects may be attractive to investors seeking long-term growth and income opportunities.
EMCOR Group, Inc. reported exceptional Q4 and full-year 2022 results, with record revenues, operating income, and EPS. Revenues for Q4 2022 were $2.95 billion, up 11.7% YoY, and net income was $126.3 million, or $2.63 per diluted share.
Full-year 2022 revenues were $11.08 billion, up 11.8% YoY, and net income was $406.1 million, or $8.10 per diluted share. Remaining performance obligations as of December 31, 2022, were $7.46 billion, up 33.2% YoY, and EMCOR expects full-year 2023 revenues between $12.0 billion and $12.5 billion and full-year 2023 diluted EPS in the range of $8.75 to $9.50.
The dividend increased by $0.06 per share to $0.14 per share, an increase of 75% YoY. The dividend increase reflects the company's strong financial performance and outlook for continued growth.
Comfort Systems USA Inc., a provider of commercial, industrial, and institutional HVAC and electrical contracting services, announced a $0.025 increase in its daily dividend to $0.175 per share.
The dividend is outstanding on March 21, 2023, to shareholders of record as of March 10, 2023.
The increase is likely due to the company's strong financial performance and cash flow generation, as well as its commitment to returning capital to shareholders.
While the current yield of 1.1% may not be attractive to all investors, the company's track record of increasing its dividend annually and its position in a growing market may provide opportunities for continued growth and dividend increases in the future.
Berry Corporation reported strong financial and operational performance for Q4 and the full-year of 2022. The company delivered a record $189 million in shareholder returns through fixed and variable dividends and share repurchases, original to approximately 27 of its market capitalization.
To demonstrate its confidence in the business plan and strategy, Berry doubled its fixed dividend to $0.48 per share annually starting from Q1 2023. Berry's unique assets and operating model generated strong free cash flow, which, when allocated per its shareholder return model, delivered industry-leading returns to shareholders.
Stantec Inc., a global sustainable design and engineering leader, reported strong financial results for Q4 2022 and the full year that ended December 31, 2022. Net revenue increased by $821 million to $4.5 billion, driven by 9.4% organic growth and 12.3% acquisition growth.
All of Stantec's business operating units and geographic regions delivered net organic growth. Adjusted EBITDA margin hit a record 16.2%, with diluted EPS at $2.22 and adjusted diluted EPS at $3.13.
Stantec expects to continue its strong financial momentum throughout 2023 and has set targets for the year.
The company increased its dividend by 10% to $0.165 per share due to its positive financial performance, and its solid prospects for unborn growth. Stantec is also considered one of the most sustainable companies in the world.
Installed Building Products, Inc. has announced its results for the fourth quarter of 2022, reporting a 28.6% increase in net revenue to $686.5 million, and a 134% increase in net income to $68.7 million.
The company has declared a regular cash dividend of $0.33 per share for the first quarter of 2023, representing a 5% increase, as well as a periodic variable cash dividend of $0.90 per share. IBP's board of directors has also authorized a new stock repurchase program allowing for the repurchase of up to $200 million of the company's outstanding common stock through March 1, 2024.
IBP has recently acquired Four State Insulation, Inc., and aims to acquire at least $100 million of periodic revenue in 2023.
Universal Display Corporation has increased its cash dividend for the first quarter from $0.30 per share to $0.35 per share, reflecting the company's expected continued cash flow generation and commitment to return capital to shareholders.
The company is a leader in the research and development of OLED technologies and materials for display and solid-state lighting applications, with a focus on developing energy-effective and eco-friendly displays using its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology.
The increased dividend suggests the company is confident in its financial performance.
Coterra Energy Inc. reported strong Q4 and full-year 2022 financial and operating results following the completion of its merger with Cimarex Energy Co. The company's net income for Q4 2022 was $1.032 billion, and its discretionary cash flow totaled $1.393 billion.
Coterra Energy increased its annual base dividend by 33% to $0.80 per share from $0.60 per share and approved a new share repurchase authorization of $2 billion after completing its $1.25 billion buyback authorization in 2022.
The company's 2022 return strategy aimed to pay 50% of Free Cash Flow (non-GAAP) via cash dividends (base variable). Coterra Energy's updated 2023 strategy maintains this target, but through a combination of base dividends, share repurchases, and/or variable dividends.
Recent strong financial performance, completion of the merger, and a positive outlook may have contributed to the dividend increase and share repurchase authorization.