U.S. dividend stocks increasing payouts

Dividend activity has picked up lately as companies begin to regain some sense of stability in the state of the economy, and visibility of future earnings growth. The iShares Dow Jones Select Dividend (DVY), an exchange-traded fund that tracks the Dow Jones U.S. Select Dividend Index, is up nearly 10 per cent so far in 2010.

There are several advantages to investing in dividend stocks for market watchers with long-term investment plans. Most simply, dividend stocks allow investors to make money with capital gains and with the dividend payments themselves, explained Dividend.com, a financial services website that notes “dividend stocks are not a get-rich-quick scheme” for day traders but are key to growing capital over longer periods of time, usually for several years.

Source: Globe and Mail

Related Articles:

• Dividend Stocks: A Disciplined Approach
• Nucor Corp. (NUE): Forging A Different Path
• Who is David Dodd and Why Should We Listen to Him
• To Infinity and Beyond!
• Increasing Dividend Yield Part III: Preferred Stock