A wide group of companies said they will raise their dividends
Thursday, joining a growing list of corporations that have ramped
up shareholder-friendly payouts to woo investors.
Retailer Men's Wearhouse Inc. (MW) lifted its quarterly dividend
by 50%, affirming what it called an ongoing ability to deliver free
cash flow. The 6-cent boost to 18 cents a share will cost the men's
clothing seller $12.3 million more each year.
Many companies have increased dividends in recent months to
spend excess cash and reassure investors worried by macroeconomic
concerns.
"Our goal is to deliver attractive growth and continued margin
expansion while remaining dedicated to a balanced total shareholder
return agenda," Men's Wearhouse Chief Executive Doug Ewert
said.
Oilfield services company Schlumberger Ltd. (SLB), meanwhile,
raised its quarterly dividend 10%. Its 2.5-cent increase to 27.5
cents a share will cost an extra $134.2 million a year.
Power and natural-gas distributor CenterPoint Energy Inc. (CNP)
raised its payout 2.5%, marking seven straight years of dividend
increases. The half-cent increase to 20.25 cents a share will cost
the company about $8.5 million more each year.
President and Chief Executive David M. McClanahan said the
increase demonstrates the company's confidence in its ability to
deliver sustainable earnings and cash flow.
Williams Cos. (WMB) said its first-quarter dividend will more
than double over its year-ago payout, with dividends expected to
come more frequently.
The oil-and-gas pipeline company plans to pay a 25.875-cent
per-share payout on March 26 and raised its full-year dividend
forecast to $1.09 a share, up 41% from 2011. Williams's previous
2012 dividend forecast was $1.03 a share.
The company said quarterly increases will prove more consistent
with growing cash distributions it is expected to get from its
ownership interest in Williams Partners LP (WPZ). Williams itself
expects its dividend to increase 10% to 15% on an annual basis.
Men's Wearhouse shares were up 5 cents at $34.76 in light
trading after the close Thursday. Schlumberger was off 26 cents at
$72.60, while CenterPoint rose 8 cents to $18.51. Williams was off
a penny at $28.73 after hours.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com