The earnings cavalcade continued last week, and with a little over half of the
S&P 500 companies already reporting first-quarter results, things are looking
far better than they did just one year ago. According to The Wall Street Journal
, profits at Americas biggest corporations are running 26% higher than a year
ago. Many of the markets biggest corporate names reported earnings last week,
and many of those companies shared the excellent results with shareholders.
Among the biggest names on last weeks list of dividend payout performers were
Dow components Chevron (NYSE: CVX ), Exxon Mobil (NYSE: X OM ), IBM (NYSE: IBM )
and Johnson & Johnson (NYSE: JNJ ). Lets take a look at each of these big names,
as well as six other biggies dividend stocks increasing their payouts last week.
Chevron (NYSE: CVX ): The oil giant reported first-quarter net income that was
36% higher than the same quarter a year ago. The company posted net income of
$6.21 billion, or $3.09 per share, from $4.55 billion, or $2.27 per share a year
ago. The results easily topped Wall Street forecasts, and the big quarter
prompted Chevron to pump up its quarterly dividend by 8.3%. The new dividend has
been raised to 78 cents from 72 cents. Chevron said it will pay the higher
dividend on June 10 to shareholders of record on May 19. Exxon Mobil (NYSE: XOM
): This was the other big oil company upping its payout to shareholders last
week, boosting its dividend 6.8% to 47 cents per share from 44 cents. The worlds
largest publicly traded oil company said the new dividend will be paid on June
10 to shareholders of record on May 13. On Thursday, Exxon Mobil reported
first-quarter earnings of $10.65 billion, or $2.14 a share, a number that topped
analysts expectations of $2.06 per share. Despite the big quarter, the company
actually failed to match its previous quarterly profit record. IBM (NYSE: IBM ):
The company upped its quarterly payout by a 10 cents per share, or 15%. The new
dividend of 75 cents per share will be paid June 10 to shareholders of record on
May 10. The increase represents the 16th straight year the technology giant has
upped its payout to shareholders. Along with news of the dividend, IBMs board
approved an $8 billion stock buyback. Johnson & Johnson (NYSE: JNJ ): The health
care products company announced a healthy 5.6% increase in its quarterly
dividend, upping its payout to 57 cents per share from 54 cents. The new
dividend is payable on June 14 to shareholders of record as of May 31. Although
the dividend increase made news, the company made a bigger news splash with its
announcement that it would buy U.S.-Swiss medical device maker Synthes Inc. for
$21.3 billion. The move will greatly increase its share of the market for
surgical trauma equipment and orthopedic implants. Coach (NYSE: COH ): The maker
of luxury handbags and fashion accessories accessorized its payout to
shareholders last week, after reporting an 18% rise in fiscal third-quarter net
income. The company explained that higher demand in North America and China
helped to offset an estimated $20 million hit to its Japan sales due to the
tsunami and earthquake. The company increased its annual cash dividend by 50% to
90 cents per share. The new annual dividend will be paid to shareholders in
July. Coca-Cola Enterprises (NYSE: CCE ): The iconic beverage makers bottling
division said its first-quarter net income fell 12% even as revenue rose 22%.
The company said the revenue gains came from strong demand for Coke Zero, and
its new beverage line, Ocean Spray. The company did beat estimates on the top
line; however, its bottom-line number fell short of Street expectations. Still,
Coca-Cola Enterprises filled shareholders cups with an 8.3% increase in its
quarterly dividend. The new dividend of 13 cents per share will be paid on June
23 to shareholders of record as of June 10. Costco Wholesale Corp. (NASDAQ: COST
): The membership warehouse is famous for its great deals on all kinds of
essential products, and last week it gave a great deal to shareholders. The
companys board approved a $4 billion share buyback program while also raising
its quarterly dividend by 17%. The new dividend of 24 cents per share from 20.5
cents will be paid on May 27 to shareholders of record on May 13. The payout
increase comes a little over a month since Costco reported a 16% rise in fiscal
second-quarter net income. Northrop Grumman (NYSE: NOC ): The third largest U.S.
defense contractor reported a first-quarter profit that topped estimates, and
that came in 20.9% higher than a year ago. The company cited the spinoff of its
shipbuilding unit as part of the reason for its stellar quarter. Northrop also
brought out the big guns on the dividend front, upping its payout to
shareholders by 6% to 50 cents per share from 47 cents. The new dividend is
payable on June 11 to shareholder of record on May 31. The move higher
represents the eighth year of dividend increases for the aerospace and defense
firm. Parker Hannifin Corporation (NYSE: PH ): The manufacturer of motion and
control devices put its dividend in motion last week, increasing its quarterly
payout by 16%. The new dividend is 37 cents per share, up from the previous
quarterly dividend of 32 cents. The bump represents the industrial giants 244th
consecutive quarterly dividend. Along with the new payout, Parker Hannifin said
its third-quarter net income nearly doubled on stronger demand from industrial
customers. The stellar quarter also prompted Parker to raise its outlook for the
full year. Williams Co. (NYSE: WMB ): This producer and midstream processor of
natural gas gassed up its quarterly dividend by 60% to 20 cents per share. The
new dividend will be paid on June 27 to shareholders of record as of June 10.
The dividend hike is part of the companys plan to boost shareholder value this
year. Williams has already signaled that it is targeting an additional 10% to
15% increase in quarterly dividends by June 2012. At the time of publication,
Jim Woods held no positions in any of the stocks mentioned in this article.
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