Dividend Stocks for the Week

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By Jonas Elmerraji

BALTIMORE (TheStreet) -- Stocks Raising Dividends Are Fewer, but Worth the Hunt," declared the headline of a Wall Street Journal article yesterday. It's something we've known for quite some time here at Stockpickr.

With the kickoff of earnings season this week, companies have started making dividend declarations at an increasing pace. From just a couple of companies raising their dividends in weeks past to more than half a dozen this week, it's time to expect a flurry of dividend activity in the coming month. And those dividend-increasers are definitely worth watching.

Consistent dividend-raisers, as the Journal points out, tend also to be well-positioned in the market and boast strong cash flows, and typically their dividend payouts combine with share price increases to deliver higher total returns than other stocks. And during a recession, says the Journal, "a dividend increase is one of the strongest signals of financial health a company can give."

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.

Yum! Brands(YUM Quote) holds the distinction of making two of our lists this week. The company, which raised its dividend 10.5% on Sept. 30, giving it a 2.5% yield, is also one of this week's Rocket Stock picks. This fast food giant, which owns such brands as KFC, Taco Bell and Pizza Hut, announces its third-quarter earnings on Oct. 7, and investors are waiting with baited breath. After all, Yum! is a key player in one of the most compelling industries right now.