3 Companies That Increased Dividends Last Week

|
 |  Includes: JNJ, K, SO
by: David I. Templeton, CFA

Catching up on some dividend announcements from this past week: Johnson & Johnson (NYSE:JNJ), Southern Company (NYSE:SO), Kellogg (NYSE:K).

Click to enlarge


Johnson & Johnson

  • Announced a 10.2% increase in the quarterly dividend to 54 cents per share versus 49 cents per share in the same quarter last year.
  • Based on 2010 estimated earnings per share of $4.85, the projected payout ratio is 45%. This compares to the 5-year average payout ratio of 41%.

  • JNJ carries an S&P Earnings & Dividend Quality Ranking of A+.

Click to enlarge:

Click to enlarge
Click to enlarge


Southern Company

  • Announced a 4% increase in the quarterly dividend to 45.5 cents per share versus 43.75 cents per share in the same quarter last year.

  • Based on 2010 estimated earnings per share of $2.35, the projected payout ratio is 77%. This compares to the 5-year average payout ratio of 74%.

  • SO carries an S&P Earnings & Dividend Quality Ranking of A-.

Click to enlarge:

Click to enlarge
Click to enlarge


Kellogg

  • Announced a 8% increase in the quarterly dividend to 40.5 cents per share versus 37.5 cents per share in the same quarter last year.

  • Based on 2010 estimated earnings per share of $3.59, the projected payout ratio is 45%. This compares to the 5-year average payout ratio of 47%.

  • K carries an S&P Earnings & Dividend Quality Ranking of A+.

Click to enlarge:

Click to enlarge
Click to enlarge



Disclosure: Long interest in JNJ, K