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3 Companies That Raised Their Dividends This Week

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Clorox said it will increase its quarterly dividend.

Chris Delmas/AFP via Getty Images

Clorox

and

American Eagle Outfitters

were among the U.S. companies that declared dividend increases this week, while

National Health Investors

announced a cut.

Clorox (ticker: CLX), which makes household and personal care products, plans to boost its quarterly payout by 5% to $1.16 a share from $1.11.

This year, the stock, which yields 2.6%, has returned about minus 10%, dividends included, as of June 4.

Retailer American Eagle Outfitters (AEO) plans to boost its quarterly dividend to 18 cents a share from 13.75 cents. That’s a 31% hike.

The stock, which has returned about 60% this year, yields 1.7%. The company said in a release that the increase reflects “strength in the business, financial health and confidence in delivering consistent long-term growth.”

Alexandria Real Estate Equities

(ARE) declared a quarterly disbursement of $1.12 a share, up 3% from $1.09 previously.

The company operates as a real-estate investment trust, or REIT, and focuses on urban office real estate in markets such as San Diego, Seattle, greater Boston, and Maryland. The stock, which yields 2.4%, has returned about 4% this year.

Elsewhere, another REIT, National Health Investors (NHI) said it will pay a second-quarter dividend of 90 cents a share, down about 18% from $1.1025 in the first quarter. The company’s businesses include senior housing and medical facility investments.

In a news release dated June 3, the company’s CEO,
Eric Mendelsohn,
said in part that the company’s board “is committed to preserving a prudent and conservative capital structure that ensures the Company has sufficient flexibility to manage through the impact of the pandemic.”

Sectors such as senior housing have been hit harder than more defensive sectors, like technology, during the pandemic.

Mendelsohn added that the dividend cut puts the company “in a better position to significantly improve the quality of our real estate portfolio through lease restructurings, asset sales, and accretive acquisitions while still being committed to a sustainable dividend.”  The stock, which yields 6.7%, has returned about minus 4% this year.

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