Microsoft Joins Dividend Hike Brigade (MSFT, MO, PM, EAT, INTC)


By now you know that we enjoy looking for dividends. Dividend hikes are even better than just looking at high dividends. Microsoft Corp. (NASDAQ: MSFT) has just delivered upon our ambition of hiking its quarterly dividend.

Over the last 45 days we have been talking about the remaining key DJIA and S&P 500 stocks we expect to hike their dividends before the end of 2012. Of the twelve companies we targeted, Altria Group Inc. (NYSE: MO) has already delivered on a dividend hike as has Phillip Morris International (NYSE: PM). Brinker International Inc. (NYSE: EAT) raised its payout 25% in recent weeks.

As far as the total dividend hike, it is 15% to $0.23 per share per quarter from $0.20 per quarter per share. Based upon a $31.17 closing price, the new dividend yield will be 2.95%. Unfortunately, investors are hoping for a much more aggressive dividend stance. The prior dividend was only 26% of the adjusted earnings being paid out. It is very possible that many investors would also just prefer to get a substantial one-time dividend payment as well.

For a comparison of strong technology dividend yields, Intel Corp. (NASDAQ: INTC) has a yield of about 3.9% now that its share price has come back under pressure.

Read Also: 12 Big Dividend Hikes Expected Before the End of 2012


Filed under: 24/7 Wall St. Wire, Dividends & Buybacks, Technology Companies Tagged: EAT, INTC, MO, MSFT, PM