Last week saw a number of public companies raise their dividends, despite overall market fears of a recession.
When a company raises its dividend payments it shows investors that the company has a positive outlook on future revenue growth. Stockpickr has reviewed all of last week's dividend-raisers and narrowed the names down by price/earnings-to-growth, or PEG, ratios in the
At the top of the list is
, which just raised its quarterly dividend by 10% to 27.5 cents a share. The company, which provides outsourcing services for student-loan programs, last month reported a 10% jump in its fiscal fourth-quarter profit. The stock has a
P/E ratio of 9 and a very low PEG of 0.24. It delivers a yield of 3.1%.
First Marblehead appears in the
portfolio, which contains stocks with P/E ratios less than half of their expected growth rates. Other stocks listed in this portfolio are marine-shipping company
, with an extremely low PEG of 0.17; gold company
, with a PEG of 0.37; and contract-drilling services company
, at 0.46.
, the famous motorcycle manufacturer, also raised its dividend last week, increasing the quarterly payment by 20% to 30 cents a share. This increase came a day after Standard & Poor's lowered its ratings outlook on Harley-Davidson to negative. The stock has a P/E of 11, a PEG of 1.1 and a yield of 2.1%.
Harley last week hit the
. Also making the daily updated list was
, which has a PEG of 0.99, and
, with a PEG of 0.74.
Another recent dividend-raiser is
, a maker of signs and identification tags. Brady increased its quarterly dividend by 7% to 15 cents a share, to yield 1.7%. The stock has a P/E of 17 and a PEG of 1.23.
Brady is part of the portfolio of the
, a fund managed by Chuck Royce that also owns shares of welding-products manufacturer
, with a PEG of 1.04, and electrical-equipment maker
( WGOV), with a PEG of 1.91.
To see the rest of the stocks on the list, check out the
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;
to send him an email.
TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.