Top Dividend Trends for 2012, DJIA stocks- GE, DIS, WMT, VZ, UTX, TRV, PG, PFE, MSFT, MRK, MMM, MCD, KFT, JPM, JNJ, INTC, IBM, HPQ, HD, GE

General Electric Company (NYSE: GE) a diversified technology and financial services corporation has raised its payout 3 times since mid-2010.  GE’s yield today is 3.7% and its payout is close to 40% of expected income in 2012.  The $16.10 price compares to a consensus price target of $20.80.

Home Depot, Inc. (NYSE: HD) sells an assortment of building materials, home improvement and lawn and garden products has been raising its dividend all the time now.  The current payout of $0.25  and The payout here is close to 40% of income and the stock at $38.00 is very close to the consensus price target of $39.80.

Hewlett-Packard Company (NYSE: HPQ) a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses has raised its payout from $0.08 to $0.12 as the first real dividend hike in years.

International Business Machines (NYSE: IBM) an information technology (IT) company has just paid out its third quarter of $0.75 in dividends.  As the dividend yield is only 1.6% since the $187 price compares to a 52-week high of $190.53 and since its consensus price target is $195.30.  IBM’s current $3.00 annualized payout is barely 20% of the 2012 expected earnings and the company is looking to grow earnings to $20.00 per share by 2015.

Intel Corporation (NASDAQ: INTC) a semiconductor chip maker company  pays out about one-third of its expected income.  Intel’s most recent price of $25.00 is after Warren Buffett disclosed a large stake and the consensus price target is close to $26.80 on the stock.

Procter & Gamble Company (NYSE: PG) focused on providing consumer packaged goods  payout in October of $0.525 was the third consecutive payout of the same rate, so we will be expecting a payout hike announcement early next year for a payout boost to $0.55 to $0.57 for an April payout hike.

The Travelers Companies, Inc. (NYSE: TRV) engaged in providing a range of commercial, and personal property and casualty insurance products and services to businesses, Government units, associations and individuals  September payout of $0.41 was the second payout at that rate.  The current yield is about 2.8%.  The $57.50 price compares to a consensus target of $61.00, but the payout ratio is very subjective since earnings are lower in 2011 and supposedly growing in 2012.

United Technologies Corporation (NYSE: UTX) a provider of technology products and services to the building systems and aerospace industries worldwide  three straight payouts of $0.48 per quarter so we will not be looking for a dividend hike until the summer of 2012. The current yield is 2.4% and the $78.85 price today compares to a consensus price target of $89.67.  The current payout ratio is about one-third of expected 2012 income.

Verizon Communications Inc. (NYSE: VZ) a provider of communications services already boosted its payout by more than 2% to $0.50 per quarter for its October payment. Verizon Communications is paying out about 80% of its expected 2012 income and its $37.10 price compares to a consensus price target of $38.75.

Microsoft Corporation (NASDAQ: MSFT) engaged in developing, licensing and supporting a range of software products and services recently raised its dividend to $0.20 from $0.16, this dividend represented a large boost of 25%. With shares trading around $26.50, the new $0.80 per year payout comes out to right over 3% with about a 30% income payout ratio and the consensus price target is $31.70.

Pfizer, Inc. (NYSE: PFE) a research-based, global biopharmaceutical company had already been raising its dividend and the $0.20 per quarter payout in early November was the 4th quarter in a row.  The pre-cut dividend in 2009 was $0.32, so another marginal dividend hike of 10% would still be well under its peak dividend of $0.32 per quarter.

Wal-Mart Stores, Inc. (NYSE: WMT) operates retail stores is just about to have its fourth payout of $0.365 in December, last hike was by 15%  current yield of about 2.5% was closer to 3% before the most recent pre-earnings rise.  Now shares have pulled back to $57.40 and the pre-earnings target was within a few cents of $60.00.

Walt Disney Company (NYSE: DIS) a diversified worldwide entertainment company is unusual in that it pays its dividend out annually rather than quarterly, particularly with what is a paltry 1.1% yield today.  The Mouse House is also only paying out close to 15% of its expected 2012 earnings.

McDonald’s Corporation (NYSE: MCD) operates McDonald’s restaurants in the global restaurant industry  dividend in September by 15% to $0.70 per quarter for an implied dividend yield of right around 3.0%.  The $94.00 price compares to a consensus target of nearly $100.40 and its income payout is about 50% of expected income in 2012.

3M Company (NYSE: MMM) a diversified technology company with a presence in industrial and transportation; health care; display and graphics; consumer and office; safety, security and protection services, and electro and communications is soon to be at its fourth consecutive payout of $0.55 per quarter.  At $81.30, the consensus price target is $90.41 and the $2.20 annualized payout of today.

Merck & Company, Inc. (NYSE: MRK) a global health care company  11% payout hike to $0.42 from $0.38 per quarter was the first hike since September of 2004. The new dividend yield is 4.7% and the $35.70 price compares to a consensus price target of $39.85.Johnson & Johnson (NYSE: JNJ)engaged in the research and development, manufacture and sale of a range of products in the health care field  is almost three-quarters into its $0.57 per quarter in payouts.  The current payout ratio is under 44% of expected 2012 earnings with shares around $64.60, the consensus price target is currently about $72.85 and the current dividend yield is about 3.5%.

J.P. Morgan Chase & Co. (NYSE: JPM) a financial holding company is already 3 straight quarters into its $0.25 payout per quarter after it had to slash its payout to $0.05 after previously having been at $0.38 before the recession peak, and the current payout ratio is still well under 25% of expected income.

Kraft Foods Inc. (NYSE: KFT) manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products is one which has had the same $0.29 per quarter payout since mid-2008. The $1.16 annualized payout on a static basis represents about 45% of expected 2012 earnings.

Follow me

Janina Energin

Associate News Editor at CEOWORLD Magazine
Associate News Editor, worked in IT (Software) for over 10 years, in the outsourcing industry, product companies and web start-ups. She has operations management experience and has first-hand experience with project management, payroll and various other software programs designed for small and large business operations.
Follow me
About the Author
Janina Energin

Associate News Editor, worked in IT (Software) for over 10 years, in the outsourcing industry, product companies and web start-ups. She has operations management experience and has first-hand experience with project management, payroll and various other software programs designed for small and large business operations.

Email: janina.energin@ceoworld.biz