3 FTSE Dividends Lifted This Week: The Sage Group plc, DS Smith plc and Greene King plc

The Sage Group plc (LON: SGE), DS Smith plc (LON: SMDS) and Greene King plc (LON: GNK) increase their payouts.

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After finishing on an eight-week low of 6,498 points yesterday, the FTSE 100 (FTSEINDICES: ^FTSE) has recovered 24 points to 6,522 by mid-morning. But it’s still almost certain to put in its fifth losing week in a row, having dropped 128 points since last Friday’s close. And although the index had been up around 15% on the year, it has now fallen back to a gain of only a bit over 10%.

But what helps compensate for these short-term ups and downs? Dividends! Here are three companies from the FTSE indices that have lifted their payments this week:

Sage

Business software maker Sage Group (LSE: SGE) released full-year results on Wednesday, and announced a 6% rise in its annual dividend to 11.32p per share.

Although statutory pre-tax profit fell 51% to£164.1m, the firm told us its underlying figure was pretty flat — actually a 1% rise. Earnings per share (EPS) again provided a statutory fall, this time of 79%, but there was an underlying rise of 12% to 22.27p. All this came from underlying revenue of £1,261m, up 4%.

The share price spiked on the day, up 26% to 373p, and is a fraction of a penny back from that today for a rise of more than 25% over the past 12 months.

DS Smith

For a bigger dividend rise, we only need to look to DS Smith (LSE: SMDS), as the recycled packaging supplier boosted its interim dividend by a very nice 28% this week to 3.2p per share, with results that have helped push the share price up more than 40% over the past 12 months to 310p.

A similar rise in the final dividend would give us a total of 10.2p per share for a yield of 3.3%, just ahead of the FTSE’s forecast average of 3.1%.

Results were strong across the board, with revenue up 25% to £2,081m, pre-tax profit up 52% to £85m and EPS up 30% to 11.2p per share.

Greene King

Brewer Greene King (LSE: GNK) is our third pick for today, after lifting its interim dividend 6.3% to 7.6p per share in line with a similar 6.3% rise adjusted EPS. Sales gained 5.2% to £566.2m.

 The share price is up more than 35% over 12 months to 856p today, and a total annual dividend rise of 6.3% would see a yield of 3.3% on that price.

Analysts are currently predicting slightly more than that, from an expected 10% rise in full-year EPS to 61p.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

> Alan does not own shares in any of the companies mentioned.

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