Weekly Dividend Increase Report for the Week of January 9, 2012 – A Slow Start…
January is definitely off to a slow start as far as dividend increases go. This week only two companies reported dividend increases including an industrial machinery & goods company, Robbins & Myers (ticker: RBN) as well as Plains All American Pipeline, LP (ticker: PAA) an oil and natural gas pipeline management firm.
The weekly wrap
As I do each week, I´ve provided a Google Doc spreadsheet at the bottom of this post with all the specifics, that you can refer back to at any time.
Each week as I go through the list of companies that have reported dividend increases, I´m often surprised to learn about new companies I´ve never heard of, even though many of them have been in business for 50 to 100 year or longer!
Robbins & Myers Inc. (ticker: RBN)is one of those companies. While it´s dividend yield is a paltry .39%, what makes this company interesting is:
- Operates in a *niche* market providing Industrial Machinery & Support Products
- In business since 1878 – over 125 years!
- Increasing cash reserves – currently $230MM
The bad news is that while the dividend was just increased by 25% – the company is less than shareholder friendly, interested more in paying the executive staff than rewarding the shareholders for the company´s success. The CEO salary alone is currently $2.5MM with another $1MM+ in stock awards.
Robbins & Myers is a great example of the types of businesses I like to add to the Daily Dividend Investor portfolio, but until they begin to share more profits with the shareholders, this company will remain only on my watch list.
I am looking forward to the next few weeks as we begin to see 4th quarter earnings reports come in. As companies begin to close out their accounting books for 2011 we should begin to see more companies come to market with dividend increases.
Do you have an investment that has worked well for you? Why not share it….drop me a line or add a comment to the blog – I´d love to know where you have found success in your own investing….until next week!
As always when evaluating investment opportunities it’s important to keep in mind not only the fundamentals of the stock itself, but also how the holding entity (Limited Partnership,Royalty Trust, Master Limited Partnership, Business Development Company, Preferred Stock) may affect the way you report income on your annual tax return as well as the amount or percentage of tax you will be required to pay. Adding shares of any of these special entities to tax deferred / retirement accounts may also present additional issues.
Remember to review all of the fundamentals of any company BEFORE investing – do not simply buy a stock based on the dividend payout. If you have further questions about any stock mentioned her you should first consult with your CPA or tax planner / advisor before making any investments.
For more detailed information about all of today’s dividend increases please refer to the chart below.