Dividend Stock: Viacom (VIA.B)

Unlike Target and Caterpillar, which have been dividend stocks for some time, Viacom made a splash last week with its first-ever dividend announcement. The company will also be resuming its stock buyback program, which was halted in early 2009 amid the financial crisis. The 15-cent quarterly dividend, payable July 1 to shareholders of record by June 17 (that's today!) will cost Viacom about $365 million a year.

Some are worried this may mean the end of growth for Viacom, as the company has struggled since splitting from CBS ( CBS) in 2006. And subsidiary Paramount has been suffering because Shrek movie sales haven't been all that great. But Viacom Class B shares are up 25% so far this year, so this new member of the dividend stock army must be doing something right.

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