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10:25PM (15 mins delay)
Oct 19, 2009 - 8:09 AM EDT
Dobromir Stoyanov submits:With the market up strongly year to date after hitting a multiyear bottom in March, it is hard for investors to get excited about current dividend yields of 3%-4%. It is even harder to convince an investor that a 3% yielder which manages to raise distributions by 10% annually over the next 7 years would lead to a yield on cost which is twice the current yield right now. Just a few months ago however, most investors realized that dividend income is always positive, even in a bear, after stocks tumbled over 50% off their all time highs that were hit in 2007. It is a great to achieve at least some return on investment, even when it feels that the whole world is tearing apart. Companies which maintain and even increase dividends show their confidence in their ability to generate enough in future earnings in order to cover the dividend raises. An especially bullish sign is when a company which has rewarded shareholders with a dividend raise for 37 consecutive years, raises dividends.
Several companies raised their distributions last week:
Source: Seeking Alpha (Oct 19, 2009 - 8:09 AM EDT)
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