Lorillard, Raytheon Offer Big Dividend Growth Rates


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While it's nice to receive a dividend, it's even better to see a bigger dividend check from time to time.

A number of stocks in Tuesday's Dividend Leaders screen have dividend growth rates in the double digits.

The dividend growth rate is computed using a trend analysis over three to five years of cash dividends per share on a trailing 12-month basis.

Cigarette makerLorillard ( LO ) offers the biggest dividend growth rate on the list, 24%.

The company most recently hiked its dividend by 12% to 61.5 cents a share in February. Its quarterly dividend has doubled since the firm separated from parentLoews ( L ) to become an independent, publicly traded company in 2008.

Lorillard pays $2.46 a share on an annual basis, which works out to an annualized yield of about 4%.

Raytheon ( RTN ) has a dividend growth rate of 24%. In March, the defense contractor announced a 10% hike to its annual dividend, leaving it at $2.42 a share. Raytheon has raised its dividend for 10 straight years. It has an annualized yield around 2.6%.

RivalLockheed Martin ( LMT ) has a slightly lower dividend growth rate of 21%. But it offers a higher yield of 3.3%. The company most recently announced a dividend hike in September, raising the quarterly amount to $1.33 a share from $1.15. It has boosted its quarterly dividend by double digits for 11 straight years.

Microsoft ( MSFT ), the sole technology company in Tuesday's screen, has a dividend growth rate of 19%. It pays 28 cents a share quarterly for an annualized yield of around 2.7%.

The software giant announced a dividend increase in June. Microsoft's quarterly shareholder dividend has more than doubled since 2010.

Microsoft first started issuing dividends back in 2003.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance Investing Ideas
Referenced Stocks: LO , L , RTN , LMT , MSFT

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