McDonald’s and KB Home Boost Their Dividends

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Karen Bleier/AFP via Getty Images


McDonald’s,


RPM International,

and

KB Home

were among the U.S. companies that declared dividend increases last week.

They come at a time when there are signs that dividends, many of which were cut or suspended due to the pandemic earlier this year, are stabilizing.

S&P Dow Jones Indices is now forecasting a 1% decline in S&P 500 dividend payments this year versus 2019 levels, an improvement from its forecast in May of a 3-4% drop.

Fast-food restaurant company McDonald’s (ticker: MCD) declared a quarterly disbursement of $1.29 a share, up 3% from $1.25.

The stock, which yields, 2.3%, has gained about 16% this year, dividends included.

Home builder KB Home (KBH) plans to up its quarterly payout to 15 cents a share from 9 cents. That’s a 67% increase.

The stock, which has returned about 20% year to date, yields 0.9%.

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More PPP loan questions after companies paid dividends, bought their own stock

Under the Small Business Administration rules, a PPP loan could be used only to meet payroll and pay mortgage interest, leases or utility bills. PPP loan recipients weren’t prohibited from paying investors with other funds, as long as the PPP funds were kept separate.

Still, some advocacy groups believe that companies that had enough cash on hand to pay millions in dividends and stock purchases were unlikely to qualify for the PPP program, which was designed to assist troubled companies in keeping employees on the payroll during weeks when they were unable to do business because of pandemic-related lockdowns.

“The Trump administration wrote the PPP rules and sent billions of dollars to the well-resourced and well-connected rather than actual small businesses struggling during this public health and economic crisis,” said Kyle Herrig, president of an advocacy group called Accountable.US. “The fact that there was little transparency or accountability under this

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