BALTIMORE (Stockpickr) -- So far, earnings season is off to a good start -- and that's a good thing for dividend investors.
Even though investors have been expecting the worst for stocks' third-quarter numbers, most companies are beating Wall Street's estimates for the quarter. Around 75% of the stocks in the S&P 500, for instance, have beaten earnings estimates from analysts so far. That's an indication that analysts are still far too pessimistic right now.
Instead, investors have fixated on the misses. Everyone heard about the advanced earnings mistake at Google (GOOG), but fewer folks have been paying attention to the earnings wins in three quarters of the big names out there.I've said before that earnings season and dividends go hand in hand. So, if earnings are outperforming analysts' expectations, it stands to reason that dividends are too. This week, instead of chasing yield, we'll focus on stepping in front of dividend hikes for the coming quarter. In other words, these five firms are getting ready to boost dividends; they just don't know it yet. In the past few months we've had some stellar success in finding future dividend hikes just by zeroing in on a few key factors. Now we'll look at our crystal ball and try to do it again. >>Dow 55,000? It's Closer Than You Think For our purposes, that "crystal ball" is composed of a few factors: namely a solid balance sheet, a low payout ratio, and a history of dividend hikes. While those items don't guarantee dividend announcements in the next month or three, they do dramatically increase the odds that management will hike their cash payouts, especially as investors start to get antsy about this late-2012 rally. Without further ado, here's a look at five stocks that could be about to increase their dividend payments in the next quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV