J2 Global Keeps Raising Its Shareholder Dividend
If you want higher dividend payments, don't hold your breath because it can take years for some firms to deliver. But that's not the case withJ2 Global ( JCOM ).
The Internet communications and digital media company has hiked its shareholder dividend seven times since it started its dividend program in the fall of 2011, albeit in small increments.
J2 Global, which runs eFax and Ziff Davis, last raised its dividend in May, upping its payout to 24 cents a share each quarter from 23.25 cents. Its dividend has grown 20% since initiation. J2 Global pays 96 cents a share on an annual basis, which works out to a yield of about 2.3% at current prices.
Although J2 Global has one of the lower yields among the nine dividend-paying stocks in the Telecom Services-Cable/Satellite group, it is one of the best rated. J2 Global has Composite Rating of 91 -- the highest in the entire group.
J2 Global has delivered higher earnings each year since 2002. Profit has grown from 28 cents a share in 2002 to $2.69 a share last year.
The company got off to a mixed start for 2013. Earnings for the first quarter fell 9% to 58 cents a share, hurt by interest and other expenses. But sales jumped 31% to $113.6 million. That marked its best performance in six quarters, as well as the third straight period of accelerating growth.
J2 Global also raised its full-year outlook for profit and revenue.
Despite recent market volatility, J2 Global's stock has managed to find support at its 10-week moving average. The stock is in a cup-with-handle base with a buy point at 43.53.
J2 Global's pattern doesn't have a rounded bottom, as in regular cup with handles. But the stock's Relative Strength line has hit a new high ahead of price.