Last week we released a list of stocks that will go ex-dividend in April 2014. We ended up highlighting just around 30 stocks that yield 3% or more. A few of these stocks have 5 year dividend growth rates of 5% or more and are worth pointing out here.
While we do not recommend trading stocks on the ex-div date a alone it is always good to know when your stocks go ex-dividend (what is that?) especially if you are looking at making a new purchase in the next week or so.
Clorox (CLX) will trade ex-div on 4/21 and will pay dividends to shareholders on 5/9. Just yesterday I announced that I added shares of CLX to my portfolio. Clorox is currently yielding 3.2% and has a 5 year dividend growth rate of 9.8%. Free cash flow yield is strong at 4.5% and the payout ratio is just right at 62%. I’m ready to start getting dividend checks from this company!
Hasbro (HAS) will go ex-dividend on 4/29 and will pay dividends out on 5/15. This stock is yielding 3.1% and has risen over 25% in the last 12 months. The company has increased dividends for over 10 consecutive years and has a 5 year dividend growth rate of 9.5%.
Sysco Corp (SYY) has a ex-dividend date of 4/2 and will pay dividends on 4/25. The stock yields 3.2% with a 5 year dividend growth rate of 5.4%. The company has increase dividends for over 10 consecutive years. The payout ratio is approaching 70% and is something to watch.
General Mills (GIS) has an ex-dividend date of 4/8 and a pay date of 5/1. GIS is yielding 3.2% and has a 5 year dividend growth rate of 11%. General Mills has a free cash flow yield of 6.5% which is double its dividend yield. It also has a low payout ratio of 53% and is trading at 18.5 times earnings. This may very well be the next stock I buy.
Are you looking forward to a dividend check from any of these companies?
I own some GIS so I’m looking forward to those dividends. CLX is the only company out of the other three that I’m really looking to add to but I need to do some more research on them and update my valuation. I’m pretty sure I had some concerns about the balance sheet. If I remember correctly they carry quite a hefty debt level. Of course it hasn’t been an issue yet but if you don’t have debt you can’t really get into any trouble.
I recently took my kids to target and had an “epiphany” while walking through the toy aisle. Hasbro has been a staple ever since I was a kid and I told myself to put that company in my queue to be analyzed.