Dividend-Increasing Stocks

Last week was another surprisingly strong one for dividend-increasers ; 38 stocks announced increases in their payouts to shareholders in the last week, falling just short of 2010 and 2011's record 43 increases just two weeks ago. The sheer number of dividend hikes is also significant because of which companies made the list; this latest group includes some of Wall Street's bigger names, an auspicious signal to income investors who're already enjoying a generous earnings season.

For the last few years, we've asserted that dividend-increasers are worth watching for a bevy of reasons, particularly in the current economy. And the statistics back up that claim. Over the last 36 years, dividend stocks outperformed the rest of the S&P 500 by 2.5% annually, and they outperformed nonpayers by nearly 8% every year, all while paying out cash to their shareholders, according to a study from NDR. And while that statistic applies to all companies that pay dividends, the companies that increase those dividend payouts over time are even better.

Source: The Street

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