On July 26th Reynolds American, Inc. (RAI) increased its quarterly dividend by 10% to 46 cents per share from 42 cents. Shareholders of record as of September 12 will receive dividends from the tobacco business on October 3. The company’s shares go ex-dividend on September 8.
With this increase, the YOC of my position in RAI has increased to 5.1%. However, my position in LO used to around 6.8%, so it is still low as my LO position has been converted into RAI.
Disclosure: Long RAI