This past week was good for investors as the Dow snapped its multiday losing streak and a few companies decided to boost the dividend payout that investors are currently getting. Dividends are always a welcome site as they are the only real return that investors receive before they sell their shares. A dividend increase means more cash in the pockets of shareholders. Let’s take a a look at the recent dividend increases authorized by company management teams.
American Water (AWK) increased its dividend payout from 88 cents per share to 92 cents per share. The 5% increase is due to the string cash flow that the company has been able to generate over the past few quarters. They payout will be available to all shareholders as of August 12th.
Things are going well for Petsmart (PETM). The company is returning part of its 28% profit increase back to shareholders. The company increased its dividend 12% to 56 cents a share. Petsmart also announced a stock buyback plan that should unleash more value for shareholders. The company is buying back $450 million dollars worth of stock.
Chesapeake Energy (CHK) raised its dividend 17% to 35 cents per share. The one cent quarterly increase seems to be a response to the cries of shareholder asking for a dividend boost. Chesapeake Energy had not raised its dividend in almost four years. The company is finally releasing some of its cash hoard to shareholders who have been waiting for the natural gas company to bounce back.
Investors may be fearful about the stock market but the abundance of dividend increases taking place shows that companies are not.