ManpowerGroup Inc. MAN is an intriguing option for investors seeking both growth and income. This provider of workforce solutions and services recently announced a dividend hike, reflecting its plan of utilizing free cash to enhance shareholders’ returns, thereby boosting investors’ confidence in the stock.
The Milwaukee, WI-based company, which carries a Zacks Rank #3 (Hold), raised its semi-annual dividend by 63% to 80 cents (or $1.60 annually) from 49 cents a share (or 98 cents annually). The increased dividend will be paid on Jun 15, 2015 to stockholders on record as of Jun 1. The dividend yield based on the new payout and the last closing market price is approximately 1.9%.
Dividend hikes not only enhance shareholders’ returns, but raise the market value of the stock as well. Through this strategy, companies try to win investors, thereby persuading them to either buy or hold the scrip instead of selling it.
Investors prefer an income generating stock and a dividend paying stock is always a preferable option. People looking for regular income from stocks are most likely to be inclined toward those companies that have a track record of consistent and incremental dividend payments.
Other companies that recently increased their quarterly dividends include Foot Locker, Inc. FL and Newell Rubbermaid Inc. NWL, which hiked their annual dividends by 14% to $1.00 and 12% to 76 cents, respectively. Another company, Costco Wholesale Corporation COST recently hiked its annual dividend by 12.7% to $1.60.
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