Corporate earnings flooded in last week, and there were some high-profile beats
from big name firms Apple (NASDAQ: AAPL ) and General Electric (NYSE: GE ).
There were also some big-name misses this week, including Bank of America (NYSE:
BAC ) and Goldman Sachs (NYSE: GS ). But amid the backdrop of those mixed
earnings reports there was a banquet of tasty dividend increases for
income-oriented investors. Leading the charge among the high-profile dividend
boosts was oil-field services giant Schlumberger (NYSE: SLB ). The company blew
away Wall Street estimates, posting fourth-quarter earnings of 85 cents a share
on sales of $9.07 billion. To celebrate the outstanding quarterly performance,
Schlumberger raised its dividend to 25 cents a share, a 19% increase over the
current quarterly payout. The ex-dividend date for the company's first payout
under the new rate is Feb. 14. The dividend increase was Schlumberger's first
in three years, and it's a very positive harbinger of things to come for
investors banking on income from the oil patch. According to a Schlumberger news
release, "For oil, 2010 turned out to be the year of the second-largest demand
increase in the last 30 years." The company added, "The consensus forecast
for demand in 2011 shows a further healthy increase." If this prognosis proves
prescient, then look for more dividend increases from the oil sector as the year
unfolds. In addition to Schlumberger, another company in the oil-related sector,
equipment supplier Robbins & Myers (NYSE: RBN ), lifted its dividend payout last
week. The firm just reported a surge in its fiscal first-quarter net income,
attributing the gains to a nice recovery in the energy markets, especially in
drilling for shale projects. Like Schlumberger, Robbins & Myers easily bested
Street expectations, posting a profit of 44 cents a share vs. the consensus
forecast of 33 cents a share. That earnings beat, along with an upbeat forecast
for its full fiscal year, prompted the company's board to approve an increase
in the quarterly cash dividend to 4.5 cents from 4.25 cents. The dividend is
payable on Feb. 18 to shareholders of record as of Jan. 21. Another prominent
energy company that raised its dividend last week was Oneok (NYSE: OKE ). The
natural gas processor increased its full-year 2010 earnings estimates, as well
as its 2011 forecast last week, citing higher fee-based earnings from increased
natural gas liquids volumes. That upbeat forecast prompted ONEOK's board to
approve a quarterly dividend increase of 8% to 52 cents a share from 48 cents a
share. The new dividend rate is payable Feb. 14 to shareholders of record at the
close of business Jan. 31. This company has increased its dividend 11 times
since 2006, and once again it's proving its mettle as a dividend winner. The
energy space wasn't the only sector with some big dividend increases. Water
filtration company Pall Corp. (NYSE: PLL ) said Thursday its board approved a
quarterly cash dividend increase to 17.5 cents a share from 16 cents a share. It
was the firm's seventh-consecutive year of with a dividend increase. The new
dividend rate is payable Feb. 23 to shareholders of record as of Feb. 8.
Sensient Technologies (NYSE: SXT ), a supplier of colors, flavors and fragrances
to the food, beverage, cosmetic, ink-jet and pharmaceutical industries, also
raised its dividend this past week by a penny to 21 cents a share. The new cash
dividend will be paid March 1 to shareholders of record Feb. 9. Sensient
Chairman and CEO Kenneth Manning said the increase reflects confidence in the
strength of the company's business going forward. Sensient reports its
earnings in early February, so the new dividend boost could bode well for those
upcoming results. The publishing world also had a good week for dividend
increases, with two prominent companies announcing they were upping the reward
to shareholders. Newspaper publisher Washington Post (NYSE: WPO ) raised its
annual dividend to $9.40 from $9. The new quarterly dividend rate of $2.35 a
share will be payable on Feb. 11 to shareholders of record Jan. 31. News of the
Washington Post's dividend increase was overshadowed by the headline that
billionaire investor Warren Buffett will retire from its board of directors when
his current term ends in May. The other publishing giant boosting its payout
last week was McGraw-Hill (NYSE: MHP ). The book publisher and owner of ratings
agency Standard & Poor's, will raise its quarterly cash dividend by 6% to 25
cents a share from 23.5 cents a share. In a statement accompanying the dividend
increase, Harold McGraw III, chairman, president and CEO, said, "Increasing
the dividend underscores the strength of our financial position and confidence
in our long-term growth prospects." The new dividend will be paid on March
10 to shareholders of record on Feb. 24. Rounding out last week's dividend
increases is cruise operator Carnival (NYSE: CCL ). The company's dividend
ship really sailed this time, as Carnival more than doubled its quarterly payout
to 25 cents a share from 10 cents a share. The new dividend will be paid on
March 11 to shareholders of record on Feb. 18. News of the boosted dividend is
very good news for shareholders of the largest cruise company in the world, as
it follows last year's reinstated dividend. At the time of publication, Jim
Woods held no positions in any of the stocks mentioned in this article.
