Fair Value Updates & Dividend Increases

The following nine companies that are followed on our watchlist had fair value increases this past week. Percentage wise CNI and MSFT were exceptional upgrades. You gotta love JNJ and KO they just keep plugging along.

CNI from $50 to $58
HAS from $74 to $77
JNJ from $102 to $104
KO from $43 to $44
LMT from $193 to $206
MCD from $128 to $130
MMM from $160 to $165
MSFT from $52 to $61
PEP from $99 to $100

Also, JNJ and XOM announced dividend raises this past week:

JNJ from $3.00 to $3.20 (annual) up a solid 6.66%. This percent increase is pretty much inline with JNJ’s recent historical dividend increases, with a 5-year dividend growth rate of 7.3%.
XOM from $2.92 to $3.00 (annual) up only 2.7%. This is the lowest percentage increase in the 34 consecutive years that XOM has raised its dividend. Last year was a 5.8% increase. This is not surprising given the major down turn in oil prices. XOM’s past 5-year average dividend growth rate is 10.9%, this figure does not take into account this years low increase.
IBM from $5.28 to $5.60 (annual) up 7.7%. The new quarterly dividend is payable on June 10, 2016 to stockholders of record as on May 10, 2016, with an ex-dividend date of May 6, 2016. The yield based on the new payout is 3.84%.
UTX from $2.56 to $2.64 (annual) up 3.1%. The quarterly dividend is payable on June 10, 2016 to stockholders of record as on May 20, 2016, with an ex-dividend date of May 18, 2016. The yield based on the new payout is 2.53%.

Thursday Polaris Industries (PII) finally pulled back a little into the $98 range. I saw some good technical support in the $96 range so I have entered a buy order for $96.20. I really like the dividend growth prospect of this company, and its wide moat. Time will tell.

Full disclosure I own HAS, IBM, JNJ, KO, MCD, PEP, UTX and XOM.

Filed in: Dividend Increase Announcements