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Reynolds American Boosts Dividend by 9%, Announces Stock Split (RAI)

Tobacco powerhouse Reynolds American, Inc.( RAI

) on Friday said it would boost its quarterly dividend payout by nearly 9%, and said its stock would split two-for-one on Nov. 15.

The company's annualized dividend payout will be raised from $3.60 to $3.92 per share, or $1.80 to $1.96 per share on a post-split basis. The new dividend will be paid Jan. 3, 2011 to shareholders of record as of Dec. 10, 2010.

The 2:1 stock split will be completed on Nov. 15, 2010, to shareholders of record as of Nov. 1. Existing RAI shareholders will receive one extra share for each one they own.

Reynolds American stock rose 58 cents, or +1%, in premarket trading Friday.

The Bottom Line

We have been recommending shares of RAI since June 17, 2009, when the stock was trading at $36.33. The company has a 6.54% dividend yield, based on last night's closing stock price of $59.97.

Reynolds American, Inc.( RAI ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.6 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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

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

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