This Day On The Street
Continue to site
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

5 Dividend Stocks Getting Ready to Hike Payouts

>>3 Big Stocks on Traders' Radars

It's not just size that makes CAT's positioning in the equipment business attractive -- the firm has a reputation for well-built machines that see limited downtime. That gives Caterpillar a leg up in an industry that's seen sales volumes contract from their pre-recession peak. Make no mistake: The $100 billion heavy equipment market is still massive, but it's shy of the high water mark set when firms were buying bulldozers, excavators and mining equipment as fast as Caterpillar could build it.

Caterpillar shored up its operations in the wake of the Great Recession, and the firm managed to dramatically increase its unit sales and net margins even as peers were struggling to recover. With a captive finance arm and low interest rates fuelling sales for customers who want to take advantage of extremely cheap borrowing costs, CAT should have little trouble moving its machines -- especially as green sprouts start popping up in the global construction business.


2013 is panning out to be a strong year for truck manufacturer Paccar ( PCAR). The $19 billion firm has seen its share price rally nearly 20% year-to-date, besting the already-impressive performance in the S&P. Paccar builds trucks under the Peterbilt, Kenworth and DAF brands, with a huge 25% share of the U.S. market and more than a 15% share of the European market for commercial trucks.

>>5 Stocks With Big Insider Buying

An aging worldwide commercial truck fleet should provide a major tailwind for PCAR. As companies look to replace older fuel-hungry and high-maintenance trucks in their fleets with new models, the firm's offerings are well-positioned to take their place. Like Caterpillar, Paccar's brands have a reputation for quality, so the firm is able to charge premium pricing and earn deeper margins without eating into its sales numbers.

Historically, PCAR has been able to turn just under 10% of sales into cash, an impressive number for a capital-intense business like truck manufacturing. As a result, Paccar boasts an attractive balance sheet with a hefty cash position and a reasonable amount of debt.

Currently, the firm pays out a 20-cent dividend that works out to a 1.5% yield. With PCAR's history of payout hikes, investors look due for a raise in the next quarter.
2 of 4

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
Only $9.95
14-Days Free

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BBY $31.48 0.00%
CAT $71.22 0.00%
PCAR $51.84 0.00%
RSG $44.12 0.00%
STX $34.62 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs