Markets

These 25 Stocks That Pay Dividends Just Hiked Payouts for Better Yield

Stocks that pay dividends are a top choice for income in today's low-interest environment.

Compare dividend stocks to the income alternatives. U.S. Treasury yields sit near historic lows. Nearly 22% of total developed market countries' debt carries a negative yield.

Meanwhile, most have increased yields. And they offer investors the chance at
capital appreciation.

Global bond yields have fallen amid slow economic growth, plunging oil prices , and easy money policies by central banks. As a result, U.S. bond yields are sinking as risk-averse investors pile into U.S. debt for safer and slightly better returns.

Meanwhile, most stocks that pay dividends have increased yields. And they offer investors the chance at capital appreciation.

Last week 57 companies boosted payouts, including Cisco Systems Inc. (Nasdaq: CSCO ), PepsiCo Inc. (NYSE: PEP ), and United Parcel Service Inc. (NYSE: UPS ).

Here are 25 notable dividend hikes from the week ending Feb. 13.

Stocks That Pay Dividends: 25 New Increases

The Power of Dividend Stocks

  • Stability. Research shows that dividend-paying stocks have outperformed non-dividend payers in four of the last five decades. And during periods when the Fed's monetary policy is neutral or easing, the gain for dividend-paying stocks is 12.3% vs. 6.2% in neutral environments and 10.0% vs. -2.5% in easing periods.
  • Performance. Dividend-paying stocks outperform non-dividend paying stocks by even more in down markets than they do in up markets. That's because dividend payers attract investors when the share price falls and the dividend yield rises.
  • Growth. Investors can substantially expand their asset base when they consistently reinvest dividends. In fact, 85% to 90% of total stock market returns come from dividends and the reinvestment of those dividends.

AllianceBernstein Holding LP (NYSE: AB ) raised its quarterly dividend $0.12 to $0.57 a share for a 9% yield.

Allstate Corp. (NYSE: ALL ) hiked its quarterly payout $0.02 to $0.30 a share for a 1.68% yield. The insurance giant has been boosting its dividend for the last four years.

Cisco Systems Inc. (Nasdaq: CSCO ) sweetened its quarterly payout 10% to $0.21 a share for a 2.85% yield. The dividend hike is its fifth in four years. The tech titan initiated dividend payouts in March 2011 and upped payouts twice in 2012.

Coca-Cola Enterprises Inc. (NYSE: CCE ) increased its quarterly dividend $0.03 to $0.28 a share for a 2.56% yield. The hike is the eighth consecutive boost from the bottling behemoth.

Dunn & Bradstreet Corp. (NYSE: DNB ) hiked its quarterly payout 5% to $0.46 a share for a 1.4% yield.

Dominion Resources Inc. (NYSE: D ) raised its quarterly payout 8% to $0.647 a share for a 3.55% yield. The energy company has been increasing its dividend for the last 12 years straight.

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Equifax Inc. (NYSE: EFX ) boosted its quarterly dividend $0.04 to $0.29 a share for a 1.25% yield.

Forrester Research Inc. (Nasdaq: FORR ) fattened its quarterly payout 6.2% to $0.17 a share for a 1.81% yield.

FreightCar America Inc. (Nasdaq: RAIL ) raised its quarterly dividend $0.03, or 50%, to $0.09 a share for a 1.31% yield.

Hasbro Inc. (Nasdaq: HAS ) hiked its quarterly payout $0.04 to $0.46 a share for a near 3% yield. The toymaker also announced a $500 million share buyback. Shareholders benefit from buybacks because they reduce shares outstanding. That can boost earnings per share and in turn lift stock prices.

Kite Realty Group Inc. (NYSE: KRG ) raised its quarterly dividend 4.8% to $0.27 a share for a 3.74% yield.

L Brands Inc. (NYSE: LB ) increased its quarterly payout $0.16 to $0.50 a share for a 2.12% yield. The parent company of Victoria's Secret and Bath & Body Works also announced a special $2-per-share dividend payable March 6 to shareholders of record Feb. 20.

L-3 Communications Holdings Inc. (NYSE: LLL ) goosed its quarterly dividend a nickel to $0.65 a share for a 2% yield.

McGraw Hill Financial Inc. (NYSE: MHFI ) hiked its quarterly dividend $0.03 to $0.33 a share for a 1.29% yield. The financial intelligence company has paid dividends every year since 1937. It's one of fewer than 25 S&P 500companies that has increased its dividend annually for at least the last 42 years.

Molson Coors Brewing Co. (NYSE: TAP ) juiced its quarterly payout $0.04 to $0.41 a share for a 2.25% yield. The beer giant also authorized the repurchase of up to $1 billion of its common stock.

Newell Rubbermaid Inc. (NYSE: NWL ) raised its quarterly dividend $0.02 to $0.19 a share for a yield just shy of 2%. The boost is the fifth in the last four years.

Owens Corning (NYSE: OC ) increased its quarterly dividend a penny to $0.17 a share for a 1.76% yield.

PepsiCo Inc. (NYSE: PEP ) sweetened its quarterly dividend for the 43rd straight year. The beverage giant's new dividend is $0.702 a share, a 7.3% increase. The company also announced plans to buy back up to $12 billion in stock by July 2108.

Robert Half International Inc. (NYSE: RHI ) raised its quarterly dividend $0.02 to $0.20 a share for a 1.3% yield.

Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT ) hiked its quarterly payout 7% to $0.375 a share for a yield approaching 2%. Shares got a boost last week after the company announced plans to spin off its vacation ownership business.

Tesoro Corp. (NYSE: TSO ) boosted its quarterly dividend 41.7% to $0.425 a share for a 2.08% yield.

Time Warner Inc. (NYSE: TWX ) raised its quarterly dividend 10% to $0.35 a share for a 1.67% yield.

United Parcel Service Inc. (NYSE: UPS ) upped its quarterly payout $0.06 to $0.73 a share for a 2.87% yield. The shipping company has been boosting its payout without interruption since 2010.

Williams Co. Inc. (NYSE: WMB ) increased its quarterly dividend 1.8% to $0.58 a share for a 4.7% yield. The natural gas company has paid a dividend every quarter since 1974.

Xerox Corp. (NYSE: XRX ) raised its quarterly payout 12% to $0.07 a share for a 2.03% yield.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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