Investors Pin Hopes On Dividends

Dividends have gone from being an afterthought to one of the top things on many investors' minds. These periodic payments by companies to their investors are taking an oversized role in the markets. Given the stock market's disappointing performance last year and lackluster targets for 2012, investors are happy taking what they see as a safer bet. That craving for dependable, albeit not guaranteed, dividend income could continue, given that interest rates remain low, analysts say.

"People are throwing in the towel on the horse race," said Jack Ablin of Harris Private Bank. "They want a dividend program that can deliver." Looking into 2012, investors have high hopes for dividend-paying stocks. Nearly three-quarters of S&P 500 companies are expected to boost their dividends in 2012, Investors are likely to see at least an 11 percent increase in dividends, and possibly much more, meaning dividends could top the previous record set in June 2008, according to S&P Capital IQ.

Source: Pittsburgh Live

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