Sometimes a cash rich company will declare a special one-time dividend to eliminate surplus cash. These special dividends are generally ignored when evaluating a company's dividend growth performance. An example, of this would be Microsoft's (MSFT) special $3.00/share dividend in 2005. Most analysts in-the-know exclude the $3.00/share special dividend use the $0.32/share regular dividend when calculating a dividend growth rate for Microsoft.
Special dividends are nice, but the most special dividend is one that increases each year. Here are several companies that recently raised their cash dividends:
After running these companies through my D4L-PreScreen.xls model, VNO with a NPV of MMA Differential of $8,728 and CRRC with a NPV of MMA Differential of $39,552 justifies a more complete evaluation. None of the others achieved the necessary NPV of MMA Differential to justify a full evaluation.
Disclosure: No position in any of the aforementioned stocks.
(Photo: Steve Woods)
Related Articles:
Vornado Realty (VNO) Raises Qtr. Dividend 5.3% and Others
Posted by D4L | Friday, November 07, 2008 | commentary | 0 comments »________________________________________________________________
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