Smuckers Announces Big One-Time Dividend Payout
has announced a special dividend payout of $5 per share as a result of its buyout of Folgers coffee.
This will be paid to all shareholders of record as of Sept. 30. The special one-time dividend will be payable on Oct. 31. The transaction, which is expected to be accretive to the company's earnings, is anticipated to close in the fourth quarter of calendar 2008, subject to customary closing conditions, including Smucker shareholder approval.
We like the shares of this company, and believe investors will continue to see out-performance from Smuckers and its share price. The company has a 2.34% dividend yield, based on last night's closing stock price of $51.31.
J.M. Smucker is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.5 out of 5 stars.
Best Buy Reaffirms Guidance, Reports In-Line Earnings
just reported a revenue increase of 12% to $9.8 billion, driven by gains from new store openings and a comparable store sales increase of 4.2%.
The revenue increase reflected the net addition of 156 new stores in the past 12 months, a comparable store sales gain of 4.2% and the favorable impact of foreign currency fluctuations. The comparable store sales gain for the quarter was driven by an increase in the average ticket as the company's revenue mix continued to shift to larger-ticket items, such as flat-panel TVs, notebook computers, and mobile phones.
The company is reaffirming EPS guidance of $3.25 to $3.40 for fiscal 2009. We like the shares of Best Buy, and have been recommending the shares here in the $42 area. We are going to watch shares closely in the event we see consumers rapidly slowing down their spending. Best Buy would become a tough stock to hold during a period where discretionary spending is severely reduced. The company has a 1.19% dividend yield, based on last night's closing stock price of $43.70.
Best Buy is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.5 out of 5 stars.
Kroger Confirms Guidance, Benefitting from Dollar-Conscious Consumers
, the largest traditional grocery store in the U.S., reported sales in the second quarter were up 11.7%, to $41.2 billion.
The company is running frequent-customer incentives for store discounts and cheaper gasoline at the chain's own stations. More store-brand items and store-prepared meals are taking advantage of the consumers new willingness to cut back on more expensive dinners out.
Kroger confirmed its fiscal year 2008 earnings guidance of $1.85 to $1.90 per share. We have avoided the shares since our initiation of coverage in early June, but we will be watching the shares closely for a potential upgrade. The company has a 1.35% dividend yield, based on last night's closing stock price of $26.59.
Kroger is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Monsanto Raises Full-Year Guidance
is out with good news this morning. The company is revising its reported EPS guidance to a range of $3.49 to $3.51, compared with its previously announced EPS guidance of $3.37.
The company expects its seeds and genomics segment will generate above $3.8 billion in gross profit for its 2008 fiscal year. Management anticipates fundamentals of agriculture and its businesses getting stronger.
We had removed shares from our "Recommended" list last month, and shares have pretty much stayed in the same price area since, having had a brief dip before recovering. We are concerned that much of the "hot" money is gun-shy about running the name up again, and with a low dividend yield of 0.67% (based on last night's closing price of $105.04), there is little room for error. We like the company's fundamentals, but we need to see if the stock can sustain a 30 times earnings valuation.
Monsanto is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.