On October 22, the Dow Chemical Board of Directors announced a 10 percent increase in the company’s dividend, from 42 cents to 46 cents per share in the fourth quarter, for the highest annualized dividend in Dow’s history. That will be payable on Jan. 29 to shareholders of record on Dec. 31. Dow will also accelerate its three-year, $5 billion share buyback, that once completed will equal $9.5 billion in share repurchases since 2013. With this raise, YOC of my position will become 3.9% and in 2016 I am supposed to receive gross dividends of $184. I actually converted some portion of my DOW shares into Olin (OLN) and I regret it now because OLN is not a dividend growth stock ($2 per quarter and no change for years) and its yield is about 4%, which means that YOC of my current DOW position is expected to exceed 4% and overtake the yield of OLN in 2017.
Texas Instruments (TXN) recently announced its decision to raise the quarterly dividend by 4 cents to 38 cents per share. This translates into a 12% increase from the prior dividend of 34 cents.The new dividend will be paid on Nov 16, 2015, to stockholders of record as of Oct 30. Also, TXN approved a share repurchase program worth $7.5 billion, in addition to approximately $1.8 billion already available.
I initiated a position of TXN in August and YOC of my position will become 3.4% with annualized dividends of $91.2. The value of my position has increased by 32.7% since last August.
Disclosure: Long DOW, TXN