The Andersons Joins Unlikely Big Dividend Hike Brigade (ANDE)

The Andersons, Inc. (NASDAQ: ANDE) is not your typical stock when it comes to thinking about dividends.  The company engages in the grain, ethanol, plant nutrient, railcar leasing and repair, turf products production, and general merchandise retailing businesses.  Dare it be called ‘General Eclectic’ to some?

This morning came news that the company is increasing its quarterly dividend payments.  The old $0.11 per quarter was generating a dividend yield of almost 1.1%.  That payment is now being increased to $0.15 per share per quarter.  The new yield is closer to 1.42% for shareholders who own the stock at the current market price.

This stock closed at $42.10 on Thursday and the 52-week trading range is $30.04 to $51.23.

It was just yesterday that Piper Jaffray raised its rating price target to $55.00 from $50.00 per share.  Another report from Seeking Alpha noted that the stock was expected to raise its dividend before February, but it is not usual that even a low yield like this sees a jump in the payouts from $0.11 to $0.15 per quarter.

This stock trades at about 8-times trailing earnings estimates as well, implying that the company’s management could easily continue to grow its dividend if it has confidence ahead that it can maintain its earnings power.