Dividend income that is...
Clorox (CLX) announced a pleasant increase to its dividend, increasing the quarterly payout to 55cents per share or $2.20 per year. That brings the company's dividend yield to a very, very respectable 3.4%.
In bigger news, Dr. Pepper Snapple (DPS) boosted their payout 67% to 25cents per share quarterly, for an annual dividend yield of 2.6%...keep in mind this company only instituted a dividend two quarters ago.
These are bullish signs for these stocks. In both cases, the dividend payout ratio is quite significant as a % of net income. And I couldn't be more happy, as a hater of stock buybacks (the other main use of excess cash). The one thing I would recommended people NOT do is reinvest these dividends -->> if the company had a use for that cash, they wouldn't be giving it back to you...
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