Domino Printing (LSE: DNO) and Stagecoach (LSE: SGC) delivered 10% dividend rises today.
On a day when the FTSE 100 (UKX) has been going nowhere -- it was a mere 5 points up on 5,456 by early afternoon -- we have had news of several companies raising their dividends by 10%.
With Europe wobbling in a week that awaits a much-hyped pow-wow between the heads of the eurozone, what are the companies that are powering up their payouts amid the pessimism?
Domino Printing Sciences (LSE: DNO) released interim figures today, and upped its half-year dividend by 10%. The firm, which is involved in the high-tech upmarket end of the printing industry, told us that sales and profits were a little down, but that this was due to short-term economic uncertainty.
But the raised interim dividend of 7.24p per share is more than twice covered by underlying earnings per share (eps) of 17.2p, and the company ended the period with net cash on its books. If the full-year dividend is raised similarly, it should come around 3.5%. The shares gained 10p, or 2%, to 519p on the news.
Rail and bus operator Stagecoach (LSE: SGC) achieved a double-whammy today after its full-year results pushed the shares up by 5.4% (up 13.6p to 263p), and the firm announced a juicy 10% boost to its dividend payout.
After seeing adjusted eps grow by nearly 7% to 25.4p, in a year in which the company returned £340m in cash to shareholders, the dividend was lifted to a very well-covered 7.8p per share. That’s a yield of around 3% on the current share price, and the shares have also put on around 12% this month, reversing a decline from February’s peak.
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The third 10% dividend rise today comes from Wynnstay Group (LSE: WYN), which has announced a 2.85p interim payout, after recording an 18% rise in half-year revenues and a 14% boost to pre-tax profits and eps.
Wynnstay is someone you may not have heard of. The firm is mainly an agricultural supplier, but also runs a chain of retail stores aimed at farmers and country dwellers.
And it's been doing rather well. Since a 161p low point in early 2009, the shares have more than doubled to stand at 383p today. Share price appreciation and a growing dividend -- what more could you ask for?
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> Alan Oscroft does not own any shares mentioned in this article.