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Meredith Corporation (MDP - Analyst Report) is an intriguing option for investors seeking both growth and income. The company recently increased its quarterly dividend by 6.1%, bringing the annualized payout to $1.73 per share with a healthy dividend yield of 3.9% based on yesterday’s closing price.

The move is a part of this Zacks Rank #3 (Hold) stock’s TSR (Total Shareholder Return) strategy, wherein this leading media and marketing company intends to boost shareholders value through dividends, share repurchases and strategic investments in business to drive growth.

Meredith has a strong history of making dividend payouts for 67 consecutive years. Over the last decade, the company has boosted its dividend at an average annualized rate of 14% and raised dividend annually for 21 years consecutively.

A dividend hike primarily reflects Meredith’s sound financial position and healthy cash flow generating capabilities. Given the company’s shareholder friendly moves, it indeed remains an attractive opportunity for investors.

The quarterly dividend, after the hike, will come to 43.25 cents a share, up from the prior payment of 40.75 cents. The enhanced quarterly dividend will be payable on Mar 14, 2014, to shareholders of record as on Feb 28, 2014.

In Feb 2013, the company last increased its quarterly dividend by 6.5% to 40.75 cents. Other companies that recently increased quarterly dividend include Enterprise Products Partners L.P. (EPD - Analyst Report) and Family Dollar Stores Inc. (FDO - Analyst Report). The two companies raised their dividends by 6.1% to 70 cents and 19.2% to 31 cents, respectively. Another company, McGraw Hill Financial, Inc. (MHFI - Analyst Report) recently hiked its dividend by 7.1% to 30 cents.

Dividend hikes not only enhance shareholder returns but raise the market value of the stock. Through this strategy, the companies bolster investor confidence in the stock, thereby persuading them to either buy or hold the stock instead of selling it.

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