This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

4 Stocks Ready for Big Dividend Hikes in 2013

That day is not here yet. It will take Apple's management a few more years to realize that the company's current cash balance--in excess of $100 billion--is already more than adequate, and future free cash flow doesn't need to be retained. Look for Apple's dividend to keep rising, perhaps reaching that $30 a share mark by mid-decade. In effect, investors buying this stocks now will be rewarded with handsome annual dividend streams starting in just a few short years.


Despite the profound cost pressures taking place in our nation's health care system, the insurance end of the business remains quite profitable. Case in point: Wellpoint (WLP), one of the nation's top insurers, is expected to keep generating around $4 billion in annual operating cash flow in 2013 and 2014, just as it has in the past. And now that cash flows are likely to remain stable, management may be inclined to loosen up a fairly rigid dividend policy. Despite earning around $8 a share every year, Wellpoint's dividend remains at just $1.15.

Wellpoint's management could afford to triple the dividend -- to around $3.50 a share -- and still retain the bulk of its annual cash flow. That would equate to a dividend yield exceeding 5%, giving this company one of the strongest yields in the S&P 500.

To see these potential dividend boosters in action, visit the 4 Companies on the Cusp of a Big Dividend Hike portfolio.


Follow Stockpickr on Twitter and become a fan on Facebook.

Stockpickr is a wholly owned subsidiary of
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
WLP $136.01 1.43%
AAPL $123.25 0.00%
F $15.98 0.00%
ITW $96.74 0.00%
FB $83.30 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs