Last week was kind to dividend investors; by my count, 10 companies raised their shareholder payouts.
The one garnering the most headlines was a highflier in more ways than one. Delta Air Lines (DAL +1.53%) said it will hand out a $0.09-per-share quarterly distribution for its next payout -- that's 50% higher than the most recent dividend of $0.06. The carrier has been doing well lately in a tough industry, and shareholders have rewarded it by more than doubling its stock price over the past year. Delta did not specify either the record or payment date of the distribution, saying only that it will be dispensed in the September quarter.
In the energy sector, Phillips 66 (PSX 2.75%) lifted its dividend by a chunky 28% to $0.50 per share. The company had a fine Q1, aided in no small part by the sale of its Phillips Specialty Products division to Warren Buffett's Berkshire Hathaway. Phillips 66 shareholders should be used to seeing dividend raises by now; the company increased its payout by 25% last October.
Phillips 66's upcoming distribution is to be paid on June 2 to stockholders of record as of May 19.
Double-digit percentage increases were in store for stockholders of hotelier Marriott International, specialty chemicals supplier Cabot International, battery maker EnerSys, and Fortune 500 member Cardinal Health:
| Company | New Dividend | Record Date | Payment Date | Old Dividend | Increase |
|---|---|---|---|---|---|
| Marriott | $0.20 | May 23 | June 27 | $0.17 | 18% |
| Cabot | $0.22 | May 30 | June 13 | $0.20 | 10% |
| EnerSys | $0.175 | June 13 | June 27 | $0.125 | 40% |
| Cardinal Health | $0.3425 | July 1 | July 15 | $0.3025 | 13% |
Sources: Company websites, Nasdaq.
Joining the single-digit percentage-raise club last week were Baxter International (BAX +0.34%) and NACCO Industries. The former will hand out $0.52 per share -- a 6% increase over the existing $0.49 -- on July 1 to holders of record as of June 6. NACCO raised the dividend of both its Class A and Class B stock by 3% to $0.2575, from an even $0.25. The new payouts are to be distributed on June 13 to shareholders of record as of May 30.
Last week was a busy one for dividend increases. Hopefully this is a good omen for income investors, heralding more raises to come over the warmer months.
