8 Fresh Dividend Hikes That May Entice More Income Investors

Norfolk Southern

Norfolk Southern Corp. (NYSE: NSC) announced on July 26 that its board approved a 9% increase in its quarterly common stock dividend to $0.94 from $0.86 per share. This new $3.76 per share annualized payout. The stock closing price of $189.99 on Friday puts the dividend yield at 1.98%.

Northern Trust

Northern Trust Corp. (NASDAQ: NTRS) raised its quarterly cash dividend to $0.70 per share on July 23, an increase of approximately 17% from the prior $0.60 per share. The new $2.80 annualized dividend per common share represents a dividend yield of 2.98%, based on its $99.64 closing price on Friday. The parent company of Northern Trust has now more than doubled its dividend payout since 2015 alone.

Permian Basin Royalty Trust

Permian Basin Royalty Trust (NYSE: PBT) raised its monthly cash distribution to $0.044227 from $0.0397 per unit. This is an 11% payout hike, and it shows some oil companies are still winning big in the Permian despite oil’s gyrations in 2019. This month’s distribution hike was said to be due primarily to an increase of both oil and gas production from May’s production month. With a new annualized rate of $0.530724 and a unit price of $5.24 on Friday’s close, Permian Basin Royalty Trust joins the list of companies with a 10% payout. These are unit payouts and, due to monthly structure, can vary widely.

Regions Financial

On July 24, Regions Financial Corp. (NYSE: RF) announced that its board would increase its quarterly common stock dividend payout by almost 11% to $0.155 per share. This new $0.62 annualized per share dividend generates a dividend yield of 3.85%, based on Friday’s closing price of $16.04. What’s impressive here is that Regions already had doubled its dividend from 2017 thru early in 2019.

Wells Fargo

Wells Fargo & Co. (NYSE: WFC) formally announced on July 23 that the banking giant was increasing its quarterly dividend to $0.51 per share. This six cent per share hike represented an increase 13% from the prior payout. While the dividend increase announcement was made, this had been largely anticipated after the Federal Reserve’s recently concluded Comprehensive Capital Analysis and Review (CCAR) plan was given no objections by the Federal Reserve along with higher share buybacks.

What stands out here is that the money center bank is now yielding more than 4.1% for its dividend, based on Friday’s closing price of $49.30. This stock is still down about 17% from its 52-week high and is down about 25% from its peak prior to the Wells Fargo fake-account and incentivization scandals rocked the company and eventually forced John Stumpf out of his role leading the bank.