Top 10 Value Stocks With Increasing Dividends

It is amazing and even surprising that some companies continue to raise dividends , considering what is happening in the economy, with a falling stock market, high rate of mortgage foreclosures and corporate debt problems.

When a company raises its dividend, it sends a powerful message to both current shareholders and potential investors, showing that no matter what shape the country's financial system is in management believes that their company will continue to improve.

Along those lines, Stockpickr has come up with a Best PEG Stocks With Raised Dividends, a list of the top 10 dividend raisers for the last week singled out for their price/earnings to growth, or PEG, ratios.

The PEG is calculated by dividing the stock's price-to-earnings ratio , also called the P/E ratio, by the company's growth rate. A PEG above 2 suggests you'd be paying too much for the stock, since it would be trading at more than two times growth. A PEG between 1 and 2 is considered favorable, and below one is considered a bargain.

At the top of the list is Lufkin Industries(LUFK Quote). This manufacturer of oil-field pumping units, power transmission products and freight-hauling highway trailers has a PEG of 0.64, and it just increased its dividend by 9.5% to 23 cents a share. The stock tanked more than 5% last Friday and another 4% on Monday, creating a favorable buying opportunity. The company recently reported a 2% drop in revenue and flat earnings. The stock is rated A- by TheStreet.com Ratings.

Lufkin is part of the Stockpickr portfolio of Cramer's Oil Service Plays, which also includes drilling contractor Nabors Industries(NBR Quote), which has a low P/E ratio of 7.8 and a very low PEG of 0.51. It recently reported a 4% year-over-year increase in quarterly revenue. The above-mentioned Cramer portfolio also includes Halliburton(HAL Quote), one of his longtime favorites. Halliburton has a P/E of 10 and a PEG of 0.85. It recently reported a 159% year-over-year increase in quarterly earnings on a 20% revenue increase.