VF Corporation (VFC) is increasing its quarterly dividend by 20.7%, from $0.87 to $1.05 per share, putting the company on track for its 41st consecutive year of dividend growth (news release). Given that I own 10 shares of VFC, my quarterly dividend increases from $8.70 to $10.50 and my yield on cost becomes 2.90%. The extra $7.20 in annual dividend income raises my forward 12-month dividend total to $2,932. Thus far this year, there have been dividend increases for 29 of the 31 stocks in my portfolio.
The company also announced a 4-for-1 stock split that will take effect by the end of the year. Once that happens, I will own 40 shares of VFC at an adjusted cost basis of $36.25 per share.
I know that it changes nothing as far as a value basis for VFC, but I like the stock split because it makes it much easier to deal with options. I really like the company and with 41 consecutive years of dividend increases is hard to not like them. Especially given that the dividend is still increasing by crazy amounts.
ReplyDeletePIP: I also recognize that a stock split doesn't change a stock's value, but I suppose there's something to be said for the positive psychological effect it has on some shareholders. It is truly exceptional that the company can do 20% dividend increases after more than 40 consecutive years of dividend growth. I think VFC is well-positioned for future growth in earnings and dividends, so it should be a great long-term investment for me. I just wish I had bought more at the start of the year!
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