Avon Products Inc. (AVP) boosted its quarterly dividend 5% to 22
cents a share, joining a host of companies in recent weeks that
have been boosting dividends.
Higher dividend payments contrast with the numerous cuts that
were seen throughout most of 2009 as businesses looked for a way to
slash costs. Avon, however, increased its dividend a year ago by 5%
and maintained that payment throughout the rest of the year. The
cosmetics company typically changes its dividend at the start of
the year.
Last week, Avon reported its fourth-quarter profit jumped 16% on
higher sales in nearly all of its overseas markets, as well as
improved margins. But shares fell after the results, as they merely
met expectations whereas other direct sellers topped views. In
response, Standard & Poor's Ratings Services put Avon on watch
for downgrade, saying the cosmetics company's credit metrics
continue to be below expectations.
On Tuesday, Avon shares were recently up 0.4% to $29.32.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com