Another cinema company that's a surprising dividend gem is National CineMedia ( NCMI) (NYSE: NCMI). The operator of the largest digital in-theater network in North America announced strong earnings last week, including a 31% growth in revenue, and a resulting hike in its quarterly dividend. CineMedia increased its payout 11% from 18 to 20 cents a share, giving the movie company a new yield of more than 3.8%. The dividend will be paid Dec. 2 to stockholders of record Nov. 18. National CineMedia stock has outperformed the market slightly year-to-date in 2010, but the prospect of a big holiday movie season could mean big bucks for NCMI. The 3D craze of the summer resulted in a nice bump in profits for related stocks such as Imax ( IMAX) (NASDAQ: IMAX) and the trend could continue to lift theaters like CineMedia going forward.
Aaron's Dividend Increase
Electronics and home furnishings retailer and rental shop Aaron's ( AAN) said its quarterly dividend will increase 8.3% from 12 cents a share to 13 cents. That gives the Aaron's a new dividend yield of 0.025%. The dividend is payable Jan. 4 to shareholders of record Dec. 1. Aaron's stock had suffered before the fall due to weak consumer spending, but has come roaring back recently -- in part to a strong third-quarter earnings report that shows growing net profit and revenue. AAN stock is up over 21% in the last month compared with about a 6% hike for the S&P 500 index.
Snap-On Dividend Increase
Snap-On ( SNA), a global manufacturer and marketer of tools, shop equipment and diagnostic software, said it raised its quarterly dividend 7%, from 30 cents to 32 cents a share. That gives SNA stock an annualized dividend yield of about 2.4%. The new Snap-On dividend is payable Dec. 10 to shareholders of record Nov. 19. Wisconsin-based Snap-On has soared in 2010, up about 25% year-to-date. That's thanks in part to a recession mentality where folks are repairing and maintaining cars and equipment longer rather than ponying up the dough for newer models. Shares are up about 35% since mid-August lows and are pushing a new 52-week high.
Pennichuck Dividend Increase
Pennichuck ( PNNW), a small-cap company that specializes in water storage and distribution in the Northeast, said it increased its cash dividend 3% last week from 18 cents to 18.5 cents per share. The payout will be delivered Dec. 1 to shareholders of record Nov. 15 and will result in a new dividend yield of about 3.0%. Pennichuck has paid dividends since 1988.