Real Hike, Real Payouts….

Cliffs Natural Resources Inc. (NYSE: CLF) voted early this week to increase the quarterly cash dividend by 60% to $0.14 per share.  That is close to a yield of 2% now after the drop in the stock.

CPI Corp. (NYSE: CPY) also voted early this week to increase its quarterly dividend payout by 25% up to $0.25 per quarter.  The yield today would be about 3.3%.

FactSet Research Systems Inc. (NYSE: FDS) approved a 15% hike to $0.23 per quarter in dividends from a prior rate of $0.20 per quarter.  This is about 1.15% today for a dividend yield.

Keithley Instruments Inc. (NYSE: KEI) increased its quarterly dividend early this week to a rate of $0.0375 per share, and this new dividend yield is almost 1.5%.

Mine Safety Appliances Co. (NYSE: MSA) must be expecting new business lines…  today declared a second quarter dividend of $0.25 per quarter, up a penny from the prior $0.24 per quarter dividend that had been in place since early 2008.

OPNET Technologies Inc. (NASDAQ: OPNT) hiked its payout after earnings early this week. It raised its quarterly dividend to $0.10 per quarter for almost a 2.4% yield.  That is $0.40 per year, up from $0.36 per year for 2009.

Portland General Electric Company (NYSE: POR) announced Thursday night that it was boosting its dividend to $0.26 per share per quarter from a rate of $0.255 previously.  The last three hikes have come each year and have been by a full penny rather than by a half-penny per quarter.  This still generates more than a 5% yield.

The Timken Company (NYSE: TKR) announced earlier this week that it declared a quarterly cash dividend of $0.13, up 44% or versus a $0.09 prior dividend.  This is after the company had seen its dividend go down to $0.09 from $0.18 previously in 2009, so this dividend raise is a game of moving back to even.

Dividend Hints……

Ford Motor Co. (NYSE: F) also hinted this week at a dividend return for shareholders, but the news we saw was that it is starting its education pay plan first after it repays more debt.  Don’t hold your breath here for a dividend on the common shares any time in the immediate future.

BB&T Corp. (NYSE: BBT) hinted earlier this week that it would be among the first of the big banks to raise its dividend.  On CNBC it seems that the hint was for a fourth quarter dividend raise, although it is no secret that the new environment is one where regulators have told banks to build capital reserves over paying out higher common dividends.  The current rate is $0.15 per quarter, but that was down from $0.47 previously and the current payout was what it was in the 1990′s.

The Dow Chemical Company (NYSE: DOW) declared a dividend of $0.15… this is one we still expect that will buckle to peer pressure and may consider raising its dividend later this year.  Much depends upon the merger integration from the 2009 Rohm & Haas deal and the notion that its business is just coming back.  The current $0.15 per quarter still generates a yield of close to 2.2%, but this is down from $0.42 before it cut that dividend over a year ago.

Cedar Fair LP (NYSE: FUN) has seen this week with its largest shareholder (Q Funding) demanding that the company reinstate an annual dividend of $0.50 per share after suspending it in 2009.  That does not assure a hike, but that is the largest holder.  A $0.50 dividend would have an indicated yield before any share price changes of approximately 3.7%.

BP plc (NYSE: BP) has been in the soup over the Gulf of Mexico spill, but this week it declared on Tuesday that its board of directors has approved on April 27, 2010 an interim dividend of USD$0.14 per ordinary share or USD$0.84 per ADS for the first quarter 2010.  This is technically a U.K.-based company, so it is doubtful that the administration can nix the dividend.  Still, you have to wonder with cost estimates all over the board into the billions of dollars for the cleanup and remediation.

And speaking of very dividends, the stock split for Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) of 3 for 1 will be reflected next week on the May 17 ex-date.  Not a true dividend because these are generally tax-free events.

Higher Dividends, Maybe Not Hikes….

Span-America Medical Systems Inc. (NASDAQ: SPAN) usually has a $0.10 per quarter dividend, but this week it announced a Special Cash Dividend of $1.00 per share.  That makes the third special dividend, and the regular $0.10 dividend is in effect as well.

Teekay Tankers Ltd. (NYSE: TNK) pays out its income as it comes and is able, so this “higher dividend” should not be considered a true hike.  It announced a cash dividend of $0.37 per share, and here are the prior dividend rates to show the inconsistent rates:

• Mar 4, 2010 $0.26 Dividend
• Nov 18, 2009 $0.15 Dividend
• Aug 20, 2009 $0.40 Dividend
• May 20, 2009 $0.59 Dividend
• Mar 4, 2009 $0.72 Dividend
• Dec 1, 2008 $1.07 Dividend
• Aug 13, 2008 $0.90 Dividend
• May 21, 2008 $0.70 Dividend
• Feb 13, 2008 $0.115 Dividend

Internet Initiative Japan Inc. (NASDAQ: IIJI) is one we have not seen the ADR list a dividend, so this may just be in local currency.  The company said on Thursday’s earnings that its FY2009 year-end cash dividend forecast was revised from JPY1,000 to JPY1,250 per share of common stock (FY2009 total dividend of JPY2,250, up from JPY2,000 as previously planned).

The Downside of Dividends….

FreightCar America, Inc. (NASDAQ: RAIL) this week that its Board of Directors decided not to authorize the payment of a cash dividend on its common shares in the second quarter of 2010 to preserve cash to help maintain its balance sheet strength.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

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The US coal sector has experienced its share of ups and downs recently, as the global economy fitfully recovers from the recent recession. In this article, we review how US coal company shares are doing and what may lie ahead for the rest of 2010. Companies in this review include Arch Coal, Inc. (NYSE: ACI), Alpha Natural Resources (NYSE: ANR), Black Hills (NYSE: BKH), Consol Energy (NYSE: CNX), James River Coal (NASDAQ: JRCC), Massey Energy (NYSE: MEE), and Peabody Energy (NYSE: BTU). We’ll also look at the Market Vectors Coal ETF (NYSE: KOL) and a few of its components that aren’t included among the other companies we’re reviewing.  Mine Safety Appliances Co. (NYSE: MSA) even has some skin in the game.

Massey Energy shares have dropped nearly 16% in the two days since the explosion at its West Virginia mine. It’s 52-week trading range is $10.58-$54.80, and it’s trading has stabilized today at right around $46/share. The stock’s 200-day moving average is up about 15.5%, not including today’s drop of more than $2/share so far. Massey’s market cap is about $4.4 billion.

Massey had a lackluster 2009 fourth quarter, but the full-year results were better than 2008. The company projected flat shipments for 2010 but at slightly higher prices than previously estimated. Shipments in 2011 are expected to be about 8% better than 2010 and the average price per ton is also expected to rise. JP Morgan dropped its rating from ‘Overweight’ to ‘Neutral’ in early February, joining most other analysts’ ratings.

Following the disaster in West Virginia, Massey may not even be able to hold on to middling ratings. In its 2009 Form 10-K, the company noted that it does not carry business interruption insurance for the about 1.5 million tons of coal it will not be producing.

Arch Coal shares have jumped about 13% since the beginning of the year. The stock’s 52-week trading range is $12.52-$28.34, and its 200 day moving average is up more than 10%. Arch’s market cap is about $4.14 billion. The company’s shares are up today as traders expect Arch to get a share of Massey’s lost production.

Arch’s fourth quarter 2009 were much like Massey’s, with revenues off slightly and fully diluted EPS also down after excluding one-time items. For 2009, revenues were down more than $400 million and EPS down 89%. The company was looking ahead to economic recovery in 2010 and offered guidance on GAAP EPS in the range of $0.37-$0.86. Following the earnings release, two analysts raised ratings and two lowered them. Sounds about right.

Alpha Natural Resources, with a market cap of $6.52 billion, has been trading in a 52-week range of $15.95-$55.70. The wide span is mostly the result of the closing of its acquisition of Foundation Coal in July 2009. The shares set the 52-week high yesterday, again as a result of the explosion at the Massey mine. The 200-day moving average on the stock is up a bit more than 26%.

Alpha’s fourth quarter and full-year 2009 results were the best in the sector, and its outlook for 2010 was positive both for shipments of thermal and metallurgical coal. Goldman Sachs has Alpha listed on its ‘Conviction Buy List’, and that is probably where it deserves to be.

Peabody Energy is the largest of the US coal miners, with a market cap of $12.67 billion. It’s 52-week trading range is $23.56-$52.14 and the stock’s 200-day moving average is up 6.13%. Shares are trading up more than 2% today, due both to the Massey mine explosion and to the rejection of Peabody’s $3.3 billion bid for Australian coal miner Macarthur.

Fourth quarter 2009 revenues were off about 6.8% sequentially and nearly 18% from the same period in 2008. Shipments were down about 4% sequentially and 11.7% year-over-year. Peabody expects its Australian operations to ship 26-28 million tons of coal to Asian markets this year, up from 23.3 million tons in 2009. Prices are also expected to increase beginning the second quarter of 2010, when annual contracts come up for renewal. Peabody’s ratings lean toward the buy side, and that’s as it should be given its position in Australia.

Consol Energy is the second largest coal company in the US with a market cap of $10.03 billion. The company’s 52-week trading range is $24.01-$58, and its 200-day moving average is down 5.59%. Shares are down more than 1% today, not on any particular news, just general ennui about the company.

Consol issued more than 44 million new shares last week to help fund its acquisition of the Appalachian oil and gas assets of Dominion Resources (NYSE: D), which it will buy for $3.475 billion. The company also fell victim to a lawsuit by shareholders disgruntled at its $363 million offer to buy the assets of CNX Gas Corp. (NYSE: CXG) that Consol does not already own. The suit alleges that the price is too low. Consol has also issued two new debt offerings totalling $2.75 billion at 8% and 8.25% interest. New debt, a shareholder suit, and a share dilution keep the shares tamped down some.

KOL, the Market Vectors Coal ETF, has been trading in a 52-week range of $14.77-$41.55. It’s 200-day moving average is up 13.9%, and shares are trading down slightly today at around $39. The fund’s return on net asset value since the beginning of the year is 4.4%.

Three Chinese coal companies account for about 20% of KOL’s assets. China Coal Energy, China Shenhua Energy, and Yanzhou Coal Mining (YZC) make up 7.73%, 7.67%, and 4.87% respectively of the fund. The largest single holding is Alpha Natural Resources, at 8.28%. Massey Energy is not among the fund’s top 10 holdings.

Mine Safety Appliances Co. (NYSE: MSA) makes health and safety products such as gas masks and detection systems. The company’s 52-week trading range is $21.08-$29.60, and it is currently trading up less than 1% on the day, at $28.66. Shares gained about 5% on yesterday’s opening, but have since given most of that back.  This may have been a ‘mining safety’ play before but it is diversified now.

The last mining disaster in the US occurred in 2007 at a coal mine in Utah that killed six miners and three rescue workers. Since 2000, 39 Americans have died in US mines. That is too many, to be sure, but in the same period a staggering total of 51,266 Chinese have been killed in coal mines. In many ways, the cost of coal is always too high.

PAUL AUSICK

• Abercrombie & Fitch (ANF) Started as Neutral at Goldman Sachs.
• American Eagle Outfitters (AEO) Started as Sell at Goldman Sachs.
• AnnTaylor Stores (ANN) Started as Sell at Goldman Sachs.
• Chico’s FAS (CHS) Started as Sell at Goldman Sachs.
• Coldwater Creek (CWTR) Started as Sell at Goldman Sachs.
• Entropic Communications (ENTR) Cut to Neutral at Piper Jaffray.
• International Game Technology (IGT) Cut to Market Perform at Wachovia.
• Mine Safety Appliances (MSA) Cut to Neutral at Baird.
• OmniVision Technologies (OVTI) Cut to Neutral at JPMorgan.
• Vanda Pharmaceuticals (VNDA) Cut To Neutral at JP Morgan; Cut to Neutral at Banc of America.

Jon C. Ogg
July 29, 2008

• Aegon (NYSE: AEG)
• Advanced Micro Devices (NYSE: AMD)
• Brookdale Senior Living (NYSE: BKD)
• Chartered Semiconductor (NASDAQ: CHRT)
• Chipotle Mexicann Grill (NYSE: CMG)
• CVR Energy (NYSE: CVI)
• Gehl Company (NASDAQ: GEHL)
• 51Job inc.. (NASDAQ: JOBS)
• Lam Research (NASDAQ: LRCX)
• Lattice Semiconductor (NASDAQ: LSCC)
• McClatchy (NYSE: MNI)
• Micron Tech (NYSE: MU)
• Mine Safety Appliances (NYSE: MSA)
• New Frontier (NASDAQ: NOOF)
• Ryland Group (NYSE: RYL)
• THQ Inc. (NASDAQ: THQI)
• Virgin Media Inc. (NASDAQ: VMED)
• William Sonoma (NYSE: WSM)

Jon C. Ogg
July 28, 2008