February 25, 2011 Declared

10 New Dividend Stocks for Income Investors to Watch


Great dividend growth stocks aren’t made overnight, but they do all get their start in the exact same way: By declaring their very first dividend. Below is a roundup of companies that recently made the decision to regularly return cash to shareholders.

The following companies either declared their very first dividend this week, or reinstated a regular dividend they were forced to halt in the past. Perhaps the next great dividend growth stock is among them.

Ashford Hospitality Trust, Inc. (AHT) reinstated its quarterly dividend at $0.10 per share. The hospitality-foceused REIT last paid a dividend of $0.28 back in 2008. Shares of AHT now yield 3.64% at their current price of $11.00.

Interpublic Group of Companies, Inc. (IPG) reinstated its quarterly dividend of $0.06 per share. This will be the first time the advertising and marketing company has returned cash to shareholders since 2002. Shares of AHT now yield 1.90% at their current share price of $12.60.

Kohl’s Corporation (KSS) declared a quarterly dividend of $0.25 per share, the first from the operator of family-oriented department stores. Shares of KSS are trading at $53.54, where they now yield 1.86%.

Macquerie Infrastructure Company LLC (MIC) announced plans to declare a first quarter dividend of $0.20 per share, which would be the first from the infrastructure holding company since 2008. Shares of MIC are currently trading at $23.83, where the anticipated payout would produce a 3.36% dividend yield.

MercadoLibre, Inc. (MELI), which hosts the largest trading platform in Latin America, initiated a quarterly dividend of $0.08 per share. Shares of MELI are currently trading at $67.10, where they now feature a 0.48% dividend yield.

Rimage Corporation (RIMG), a provider of digital publishing solutions, initiated a quarterly dividend of $0.10 per share. Shares of MELI are currently trading at $15.12, where they now yield 2.65%.

Terreno Realty Corporation (TRNO), an industrial REIT that went public just last February, initiated a quarterly dividend of $0.10 per share. Shares of TRNO are currently trading at $17.72, where they now yield 2.26%.

Texas Roadhouse, Inc. (TXRH), owner/operator/franchisor of the restaurant chain of the same name, initiated a quarterly dividend of $0.08 per share. Shares of TXRN are currently trading at $17.19, where they now yield 1.86%.

WellPoint, Inc. (WLP) declared a quarterly dividend of $0.25 per share, the health benefit company’s first. Shares of WLP are trading at $66.41, where they now feature a 1.51% dividend yield.

Williams Controls, Inc. (WMCO) initiated a quarterly dividend of $0.12 per share. The throttle control systems company has paid sporadic dividends in the past, but never established a quarterly dividend policy. Shares of WMCO now feature a 4.25% dividend yield at their current share price of $11.30.

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