It is amazing and even surprising that some companies continue to raise dividends
, considering what is happening in the economy, with a falling stock market, high rate of mortgage foreclosures and corporate debt problems.
When a company raises its dividend, it sends a powerful message to both current shareholders and potential investors, showing that no matter what shape the country's financial system is in management believes that their company will continue to improve.
Along those lines, Stockpickr has come up with a Best PEG Stocks With Raised Dividends, a list of the top 10 dividend raisers for the last week singled out for their price/earnings to growth, or PEG, ratios.
The PEG is calculated by dividing the stock's price-to-earnings ratio
, also called the P/E ratio, by the company's growth rate. A PEG above 2 suggests you'd be paying too much for the stock, since it would be trading at more than two times growth. A PEG between 1 and 2 is considered favorable, and below one is considered a bargain.
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