) is an intriguing option for investors seeking both growth and
income. The company recently increased its quarterly dividend by
6.1%, bringing the annualized payout to $1.73 per share with a
healthy dividend yield of 3.9% based on yesterday's closing
The move is a part of this Zacks Rank #3 (Hold) stock'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 growth.
Meredith has a strong history of making dividend payouts for
67 consecutive years. Over the last decade, the company has
boosted its dividend at an average annualized rate of 14% and
raised dividend annually for 21 years consecutively.
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.
The quarterly dividend, after the hike, will come to 43.25
cents a share, up from the prior payment of 40.75 cents. The
enhanced quarterly dividend will be payable on Mar 14, 2014, to
shareholders of record as on Feb 28, 2014.
In Feb 2013, the company last increased its quarterly dividend
by 6.5% to 40.75 cents. Other companies that recently increased
quarterly dividend include
Enterprise Products Partners L.P.
Family Dollar Stores Inc.
). The two companies raised their dividends by 6.1% to 70 cents
and 19.2% to 31 cents, respectively. Another company,
McGraw Hill Financial, Inc.
) recently hiked its dividend by 7.1% to 30 cents.
Dividend hikes not only enhance shareholder returns but raise
the market value of the stock. Through this strategy, the
companies bolster investor confidence in the stock, thereby
persuading them to either buy or hold the stock instead of
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