Pharmaceutical Product Development (PPDI) announced that its board of directors has amended the company's annual cash dividend policy to increase the annual dividend rate by 20 percent, from $0.50 to $0.60 per year, payable quarterly at a rate of $0.15 per share.
The board of directors also declared a cash dividend for the second quarter of 2009 based on the new dividend rate. The record date for the second quarter dividend is June 15, 2009, and the payment date is June 29, 2009.
This is the fourth consecutive year the company has raised its dividend.
The Bottom Line
We have avoided shares of PPDI since last June's early coverage began. The stock will now have a dividend yield of 3.11%, based on the higher payout and Friday's closing stock price of $19.32. The stock has technical support around the five-year lows or $15 a share. If the shares can firm up, we see overhead resistance around the $22-24 price levels. We would remain on the sidelines for now.
Pharmaceutical Product Development is not recommended at this time, holding a Dividend.com DARS Rating of 0.0 out of 5 stars.
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