) recently increased its quarterly dividend by 6.5%, bringing the
annualized payout to $1.63 per share with a healthy dividend
yield of 4.5% based on yesterday's closing price.
The move is a part of the company's TSR (Total Shareholder
Return) strategy, wherein this leading media and marketing
company intends to boost shareholders value through dividends,
share repurchases and strategic investments in business to drive
Meredith has a strong history of making dividend payouts for
66 consecutive years. Over the last decade, the company has
boosted its dividend at an average annualized rate of 16% and
raised dividend annually for 20 straight years.
A dividend hike primarily reflects Meredith's sound financial
position and healthy cash flow generating capabilities. Given the
company's shareholder friendly moves, it indeed remains an
attractive opportunity for investors seeking both growth and
The quarterly dividend, after the hike, will come to 40.75
cents a share, up from the prior payment of 38.25 cents. The
enhanced quarterly dividend will be payable on Mar 15, 2013, to
shareholders of record as on Feb 28, 2013.
Other companies, which recently increased dividend, include
Limited Brands, Inc
) by 20% to 30 cents,
The McGraw-Hill Companies, Inc
) by 9.8% to 28 cents and
Family Dollar Stores Inc
by 23.8% to 26 cents.
Currently, shares of Meredith retain a Zacks Rank #2 (Buy) as
it continues to focus on bolstering advertising revenue,
primarily in the digital space and enhancing online consumer
transactions, especially magazine subscription orders. Moreover,
the company's focus on brand licensing, marketing services and
e-Commerce is expected to drive revenues.
FAMILY DOLLAR (FDO): Free Stock Analysis
LIMITED BRANDS (LTD): Free Stock Analysis
MEREDITH CORP (MDP): Free Stock Analysis
MCGRAW-HILL COS (MHP): Free Stock Analysis
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