In an economy where companies operate with record amounts of cash on their balance sheet and are slow to return capital to shareholders, it is always encouraging to see a company give back. As a result, I am looking at five companies that announced an increase in dividend on Friday or after the market closed on Thursday. These are high-yield stocks that might fit well into your portfolio.
Overvalued but Shareholder Friendly
Ventas, Inc. (NYSE:VTR) increased in value by nearly 2% on Friday after the company reported earnings that beat expectations. The real estate company is considered by many to be overvalued, with a price/sales over 8 and a forward P/E ratio of more than 40. However, its shareholder-friendly executive staff is what keeps investors happy, and in addition to posting strong earnings the company increased its dividend by 8%. It now pays a forward yield of 3.95%, and offers opportunity as a play in the growing real estate space.
Occidental Petroleum Corporation (NYSE:OXY) has been a poorly performing stock over the last year as oil and natural gas prices continue to fall and profits have been affected. The company is now embarking on a major organizational change, losing its President and CEO Stephen Chazen. Earlier today the company announced that the search for a successor has begun, and also added an 18.5% increase to its dividend along with the news. The company now pays a yield of 3% and is priced quite attractive in the space. It might be worth your attention.
Real Estate Company Continues to Increase Yield
National Health Investors Inc (NYSE:NHI) rallied more than 2% on Friday after the company raised its dividend by a modest 3.7%, paying a yield of 4.32%. The stock has now returned an incredible 35% over the last year, and the real estate company continues to follow its trend of increasing its dividend.
Modest Increase but High Yield
PPL Corporation (NYSE:PPL). saw very little movement on Friday after the company increased its dividend by 2.1%, and now pays a dividend yield of 4.82%. The utilities company has been consistent with its dividend, and has the high institutional ownership that proves it.
A Dividend Boost Worth Noting
The final large dividend increase comes from Nu Skin Enterprises, Inc. (NYSE:NUS), and although this was announced was on Wednesday, it is still noteworthy. This is a company that has seen its value decline in the wake of the Herbalife Ltd. (NYSE:HLF) debates, due to similarities between the two businesses. However, on Wednesday the company quieted many of its critics, both with strong growth from earnings and a 50% increase in its dividend. The company is now on pace to pay out a dividend of almost 3% and continues to grow by 20%. Its recent pullback might be a good buying opportunity for investors looking for a long-term gain.