Diary of a Dividend Diva: Staying With This Champ

 | Mar 06, 2013 | 11:30 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

hfc

On Dec. 3, I noted that HollyFrontier (HFC) was my "dividend champ" of 2012, saying the company "has been aggressive in returning copious amounts of cash to shareholders, in both the regular and special dividends." Happily, often these champions are the gift that keeps on giving. If there is momentum in business results and earnings, companies are usually able to continue to generate cash for extended periods, driving exceptional total returns for patient shareholders. 

HollyFrontier had a huge year in 2012, but rather than execute a reversal, the stock has kept soaring, up another 29%.

HollyFrontier (HFC) -- Daily
Source: Yahoo! Finance

I will take the capital gains any day, and in this case they are coming on top of great dividend performance. On Feb. 20, Holly announced both a 50% increase in the regular dividend to $0.30 per share, and a special $0.50 dividend on top of that, both coming in March! The company is not shy to point out that "this is the fifth increase in the regular dividend since our merger in July of 2011, representing a total increase of 300%."

That is what I call dividend performance. The recent dividend history is very impressive. Take a look. 

HollyFrontier (HFC) -- Dividends

There is nothing magic in what HollyFrontier does. It is a petroleum refiner with five plants in the U.S., making gasoline and other petroleum products. As is often the case, the company is a poster child for how a company can achieve excellent returns with strong management, efficiency opportunities (via the merger) and a dose of tailwind within their industry. Clearly if crack spreads narrow, the cash flow and dividends will not be as strong as in the past -- but, for now, they are delivering, and I am letting this stock ride.

Columnist Conversations

The Market Vectors Agribusiness (MOO) fund is breaking above 5 year rising triangle resistance. ...
A slow week is a slow week and we could see the 1 month out options decline hard to Friday. Don't be surprise...
Good to be back in Miami after a week in Las Vegas. Market looks like it will open the last trading week of N...
With approximately 2.5% of overnight volume occurring beneath Friday's regular session close, it's fair to say...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.