There are few things income investors like more than a meaty dividend raise. Argan (NYSE: AGX) declared one on Wednesday, and the market rewarded the construction company with a nearly 4% bump in its share price. That was significantly better than the 0.3% increase posted by the benchmark S&P 500 index.
Most dividend raises are cautious, representing only incremental improvements over their predecessors. This sure isn’t the case with Argan’s latest hike. The company is increasing it by 33%, or more than $0.12 per share, to $0.50. The new dividend would yield just under 1% on Argan’s most recent closing stock price. It is to be paid on Oct. 31 to shareholders of record as of Oct. 23.
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