Wheels are in Motion for These Dividend Stocks

Evidence is mounting that the auto industry is springing back to life. The auto industry worldwide is on the mend, and that signals opportunity for investors to become reacquainted not only with the big vehicle makers, but some of the smaller parts suppliers. The days of the General Motors ( GM ) and Ford ( F ) profit machines cranking out generous earnings and dividends may be over. But that doesn't mean that there aren't solid dividend paying stocks in the auto sector.

I recently explored an index that tracks the parts suppliers, the Dow Jones U.S. Auto Parts Index. As you can see below this group of stocks has been on quite a tear since September. Gentex and Autoliv have rapidly bounced back from the recession, and are sharing their good fortunes through their dividends. That's not true at other suppliers: For instance, Visteon ( VC ), Dana Holding ( DAN ) and TRW Automotive (TRW) don't pay dividends. Lear (LEA) just reported it will pay a small dividend of around $0.13, after a 2-for-1 split becomes effective.

Source: NASDAQ

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