One of the surest signs of a solid company is a dividend increase. When a company raises its dividend, it's showing prospective investors that it has confidence in the future growth of its earnings.
Stockpickr.com has reviewed the list of dividend-raisers for last week and extracted from that list the stocks with the
on a percentage basis.
At the top of the list is
, which makes and markets kitchen cabinets and vanities under the American Woodmark, Timberlake, Shenandoah Cabinetry and Potomac brand names. This Winchester, Va.-based company last week raised its quarterly dividend by 50% to 9 cents a share.
American Woodmark also announced a $100 million share-buyback program, and Robert W. Baird upgraded the stock from neutral to outperform. The stock has a
price-to-earnings ratio of 19, a P/E-to-growth (PEG) ratio of 2 and a yield of 0.9%.
American Woodwork also appears in the
, a Stockpickr portfolio that includes stocks with low price/free cash flow ratios with strong long-term projected growth. Another stock that appears in the portfolio is
. Shares of this customer- and information-management-technology solutions company offer a P/E of 48.8 and a yield of 1%.
, an Australia-based mining, oil and gas company, also just significantly increased its dividend -- by 46% to 27 cents a share. BHP also recently increased its buyback program. The company reported a 41% year-over-year increase in earnings on a 21.7% revenue increase in its latest quarterly report. The stock has a P/E of 15, a PEG of 4.2 and a yield of 1.8%.
BHP is one of the picks of
, an investor who manages $30 billion in assets and writes a column for
. Fisher also holds
, a Germany-based electronics and electrical engineering conglomerate that sports a P/E of 22, a PEG of 2.3 and a yield of 1.2%.
Another Fisher favorite is
, the offshore contract driller of oil and gas wells. Transocean, which Jim Cramer also owns for his
charitable trust, offers a P/E of 15 and a PEG of 0.3.
One more stock on the top 10 dividend raiser list is
. The Charlotte, N.C.-based bank increased its quarterly dividend by 14% to 64 cents a share. It recently reported a 24% year-over-year increase in quarterly earnings on an 18% increase in revenue. The stock has a P/E of 10, a PEG of 1.1 and a yield of 5.2%.
Wachovia is owned by the five-star Morningstar-rated
(GSLIX) fund, which has generated an average annual return of nearly 18% for the last three years. This fund also owns
, which offers a yield of 1.7%;
, which yields 2.9%; and
, which yields 4.5%.
For the rest of the names, check out the
Please note that due to factors including low market capitalization and/or insufficient public float, we consider American Woodmark to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for
The Financial Times
and the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
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