Hot Dividend Increases and Stock Offerings
Ford (NYSE:F): The company is reinstating its quarterly dividend – suspended for the last 5 years – at $0.05/share. “We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow,” says CEO Bill Ford. At $0.20 annually, the yield on the shares is 1.86%.
H&R Block (NYSE:HRB) gives a health boost to its annual dividend, raising the payout up 33% to $0.80/share. Shares of HRB now yield a juicy 5.1%.
Biotech firm Amgen (NASDAQ:AMGN) expects to repurchase almost $5B worth of stock – or around 83.3M shares at $60 a pop – following a Dutch auction. The buyback represents about half of a $10B program.
Clearwire (NASDAQ:CLWR) drops 7% after increasing the size of a recently-announced stock offering: an additional $50M in shares will be sold to the public, and Sprint (NYSE:S), courtesy of its pro rata preemptive rights, will purchase nearly as much. Moreover, Clearwire is pricing its offering, which now totals almost $700M, at $2/share, below yesterday’s close of $2.28.
Enterprise Products (NYSE:EPD) trades lower after pricing its 9M share secondary offering at $44.68 per common unit, a 2.7% discount to yesterday’s close.
In an effort to improve its capital structure, Pilgrim’s Pride (NYSE:PPC) announces plans to launch a $200M, 44.4M share rights offering. Under the offering, shareholders of the poultry processor will be able to purchase common stock at $4.50 per share, representing a 5% discount to the 60-day weighted average price, and a 28% discount to Wednesday’s close.