This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Dividend Stocks Ready to Boost Payouts

Stocks in this article: RSG CTAS MXIM NSC ITC

Cintas

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Uniform rental firm Cintas (CTAS) ebbs and flows with the health of the jobs market. For that reason, revenues have been doing a lot more ebbing than flowing in the past few years. Still, with the labor market slowly turning around, that could soon be changing for Cintas -- sales bottomed in fiscal 2010 before turning higher last year. And so far, 2012 looks like another growth year for the firm.

Cintas is the league leader in the uniform rental market, providing uniforms for employees at more than 900,000 businesses. From fast food restaurant and hotel employees to factory workers, more than five million people go to work each day wearing Cintas' uniform products. By renting and maintaining uniforms, Cintas' customers save money and effort on their peoples' uniform costs, and the firm has the opportunity to up sell add-ons.

>>5 Financial Stocks Ready for Bigger Dividends

In the past few years, Cintas has expanded its offerings by adding document management and destruction services to its lineup. The document businesses add an attractive and profitable niche to Cintas' capabilities, but they're just as beholden to the labor market as the uniform business, so revenue diversification isn't really there.

Cintas has a solid balance sheet, with around $450 million of cash and investments. Like Republic Services, Cintas operates in a capital-intense industry -- but liquidity is minimal on CTAS' balance sheet, and the firm generates plenty of cash to generate bigger dividends right now.

Presently, Cintas' annual dividend stands at 54 cents, a 1.44% yield. I think that the firm has room to hike its payouts for 2012.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs