All this week the Mad Money host is talking about companies who have recently hiked up their dividends. Tonight’s pick was the pest control company Rollins , more widely known by as its main brand, Orkin.
"Why should you care about Rollins?” Cramer asked. “For the same reason we do, it’s the third-biggest dividend booster on our list.”
This company raised its dividend by 28.6 percent, to 9 cents a quarter from 7 cents, resulting in an annualized payout of 36 cents and a 1.8 percent yield.
Now, in order for a company to pass the Mad Money “safe-test,” the earnings should be twice the size of the dividend. So with Rollins expected to earn 89 cents this year and 99 cents in 2011, ROL has plenty of room to keep increasing its dividend before it gets anywhere near non-safe territory.
Currently, the company has 2 million customers and about 500 locations all around the globe, with 40 percent of its business coming from commercial pest control, 40 percent from residential and 20 percent from termite control. Best of all, Cramer said, this is not a business that needs a good economy to make money and one that should not suffer if we get a double-dip recession.Page 1 of 3 | Next Page