Dividend Stocks for the Week

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By Jonas Elmerraji

BALTIMORE (TheStreet) -- While blue chip companies have been largely absent from the dividend hikes of the past, with the exception of Philip Morris(PM Quote) two weeks ago, several blue chips made a comeback this past week, announcing that they were increasing shareholder payouts in the coming months.

Those announcements came as news percolated that we may indeed be through with the recession that's gripped the world economy officially since December 2007.

And with more economic news on the way today, in the form of updated Case-Shiller Home Price Index and Consumer Confidence numbers, and even more economic metrics updated throughout the rest of the week, there should be plenty of opportunities for stocks to move in the coming trading sessions.

Regardless of your economic prognosis right now, it's worthwhile to give dividend-increasers a second look. Increasing a dividend is a big deal for any company, but it's a particularly significant event in the midst of a recession. Historically, companies that pay dividends materially outperform those that don't, and when the market turns bearish, dividends could be the only semblance of return that investors see for a while.

That's why every week Stockpickr reviews recent dividend declarations and compiles a portfolio of dividend-increasers. These stocks represent some of the most enticing investments on the market right now.

McDonald's(MCD Quote) may have a clown for a spokesman, but management is another story. The stock was one of the very few that actually managed to deliver gains for investors in 2008, climbing 4.2% in the midst of the worst stock crash in recent history. And now, with a 3.5% dividend yield tacked on, the world's biggest fast food company is even more attractive than before.