Score With These 2 Dividend Stocks

Amid the growing concern surrounding the escalating number of coronavirus cases that is hitting China and the number of earnings reports had this week, investors may have missed a few choice dividend announcements, including yet another special dividend announcement and the latest dividend boost from a Dividend Aristocrat. First up, let's tackle the special dividend, which is the latest one from specialty apparel company Tilly's , which focuses on branded fashion for the young men, women and children. What stands apart from other special dividend payers is that Tilly's isn't a regular quarterly dividend payer, choosing instead to pay a special dividend. Interestingly enough, the one-time special dividend of $1 per share announced this week, which is payable on Feb. 26 to shareholders as of Feb. 12, marks the fourth consecutive special dividend from the company. The potential tradition began in January 2017 with the announced 70-cent special dividend, which was increased to $1.00 per share in 2018, where it has remained since. In sum, this year's special cash dividend will total $29.7 million for Tilly's, which is easily funded by the $130 million in cash and marketable securities residing on the company's balance sheet exiting November. For investors, the $1.00 cash special dividend offers a yield of 11.3%. Not a bad return if one were to scoop up the shares near-term and hold them until the Feb. 26 payout date. Holding the shares past that date is more a question given the pain that reported so far this year by brick and mortar retailers. Turning to the Dividend Aristocrat and its latest dividend increase, the company is industrial gas producer Air Products & Chemicals and its raised its quarterly dividend for the 38th consecutive year to $1.34 per share, up from the prior $1.16 per share. At the current share price, that annualized dividend of $5.36 per share offers a yield near 2.2%. And with a dividend payout ratio below 60%, there is room for Air Products to stay on path to becoming a Dividend King. While it pales in comparison to the 11.3% to be had from Tilly's special cash dividend, the company's ability to consistently boost its quarterly dividend for more than three decades has helped fuel the rise in APD shares from below $10 exiting 1985 to the current $243. That includes increasing its dividend during four recessions, including the Great Recession, which points to the ongoing demand for the company's atmospheric gases (hydrogen, carbon monoxide, oxygen), process and specialty gases, equipment, and services products that serve a number of markets, including refining, chemical, gasification, metals, electronics, manufacturing, and food and beverage, as well as the company's prudent management of the business. In many ways, Air Products & Chemicals is the poster child for companies that continue to reward shareholders with a consistently increasing dividend stream. It's said many times, but bears repeating -- the stock market reward companies for their consistency and predictability. I consider this every time I assess a company's potential to graduate to become a Dividend King from Dividend Aristocrat, and an Aristocrat from being a Dividend Contender.

Score With These 2 Dividend Stocks

With earnings news and the China virus dominating headlines, here are two stories on a special dividend and dividend boost you may have missed.

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