(Dividend stocks article updated with Disney-Netflix agreement and broker action on Regal Entertainment.)
NEW YORK (
(EMN) joined a roster of companies
raising their shareholder payouts in recent weeks
Dividend activity has picked up in recent months
as companies begin to regain some sense of stability in the state of the economy, and visibility of future earnings growth. The
iShares Dow Jones Select Dividend
(DVY), an exchange-traded fund that tracks the
Dow Jones U.S. Select Dividend Index, is up nearly 12% so far in 2010, and up nearly 13% year-over-year.
With record cash in corporate coffers, investors have been egging on corporate management teams to
return value to shareholders
in the form of dividend checks -- and a growing number of companies are listening.
Over the last 36 years, dividend stocks outperformed the rest of the S&P 500 by 2.5% annually, and they outperformed nonpayers by nearly 8% every year, all while paying out cash to their shareholders, according to a study from National Data Research.
There are several advantages to investing in dividend stocks for market watchers with long-term investment plans.
Most simply, dividend stocks allow investors to make money with capital gains and with the dividend payments themselves, explains
, a financial services website that notes "dividend stocks are not a get-rich-quick scheme" for day traders but are key to growing capital over longer periods of time, usually for several years.
Capital gains are booked as a stock's value rises. Dividend payments are awarded to shareholders, usually on a quarterly basis.
Here then is a breakdown of 10 dividend stocks increasing their shareholder payouts in recent weeks, ranked by average volume.
(Stock quotes are based on closing prices on Dec. 3, 2010.)
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts