Monday, April 17, 2017

SO raises dividend 3.57% --- New yield is 4.66%




Today SO announced that it will increase its quarterly dividend from $.56 to $.58. This represents a 3.57% increase and the new yield is 4.66%. This is a pretty impressive raise from a high yielding utility. SO is definitely back on my radar screen after this!!

The ex-dividend date is May 11th and the pay date is June 6th.

Since I currently own 92.64 shares, my yearly dividends will increase by $7.41.


2017 Dividend Raises

OHI:  1.64% --- $3.20
KMB:  5.43% --- $8.03
GILD:  10.64% --- $10.49
CSCO:  11.54% --- $13.92
TROW:  5.56% --- $9.09
KO:  5.71% --- $20.96
QCOM:  7.5% --- $7.20
PG:  3.00% --- $2.43
OHI:  1.61% --- $6.46  (2nd Raise)
SO:  3.57% --- $7.41

Total yearly dividend increase is $89.19

DEFY MEDIOCRITY

8 comments:

  1. Southern is pretty high on my list. Of course I have bought others before buying it but I hope to buy it before the end of the year. If one area which it wouldn't be bad to be overweight in is utilities but I'm underweight right no so give it a few years though.

    ReplyDelete
    Replies
    1. D&H,

      SO has been a solid dividend stock in recent years and has given higher raises than companies like PG and XOM in recent years. I'll likely add more shares in the near future.

      MDP

      Delete
  2. Replies
    1. cd,

      I agree completely! 4.5% yield with a 3.5% growth rate is magic!!

      MDP

      Delete
  3. I really worry about that payout ratio though, Pipeline. Everything else is good but it's always a little nerve wracking when the payout ratios get as high as they are for SO right now.

    ReplyDelete
    Replies
    1. Reaper,

      Yeah high payout ratios are never a good sign, but utilities typically have large long term capital structures that create a lot of depreciation expenses. This makes the net income look smaller and the payout ratios look higher. Telecoms have similar cost structures as well.

      MDP

      Delete
  4. Always happy to hear about a divvy raise. SO continues to deliver. Rising rates, bond prices, slow/low divvy growth.... so what! So delivers and continues to behave as it should though thick and thin.

    ReplyDelete
    Replies
    1. DivHut,

      Nothing to complain about here. A strong starting yield combined with a hefty raise is beautiful!

      MDP

      Delete