The Top Dividend Stocks of the Week
Considering last week was very volatile, with the Dow Jones Industrial Average down three out of the five days, it is amazing that there were a huge number -- 29 -- of companies that raised their dividends during the week.
It just goes to show you that even though the market has dropped more than 3% in the last couple of weeks, many companies themselves are doing well, with dividend recipients of some of these names benefiting from payout increases of 5.3% to 233%.
Stockpickr has reviewed all of the the stocks that raised their dividends last week and posted the top 15 companies in the
Top Dividend-Raisers for the Week
.
One of the stocks with the biggest dividend increases is
Baxter International
(BAX) - Get Report
, which bumped up its quarterly dividend by 30% to 21 cents a share. This medical products manufacturer was in the news recently after the Food and Drug Administration approved its V-Link with VitalShield, a needleless IV connector containing an antimicrobial coating. The company expects to start distributing the device during the first six months of next year. Baxter has a price-to-earnings (P/E) ratio of 23, a P/E-to-growth (PEG) ratio of 1.6 and a yield of 1.5%.
Baxter is one of
. Cramer also likes
Colgate-Palmolive
(CL) - Get Report
, which yields 1.8%,
Avon Products
(AVP) - Get Report
, which also yields 1.8%, and one of his longtime favorites,
PepsiCo
(PEP) - Get Report
, which is now paying out about 2%.
Another stock with a big dividend increase last week is power train manufacturing company
BorgWarner
(BWA) - Get Report
, which amplified its payout rate by 29%. In addition to the quarterly-dividend raise, the company declared a 2-for-1 stock split. Moody's announced that it may upgrade BorgWarner's senior unsecured debt, due to the company's increased cash flow from debt reduction and higher earnings. The stock has a P/E of 22, a PEG of 1.3 and a yield of 0.4%.
BorgWarner is part of the
portfolio, a list of publicly traded companies with environmentally conscious products. Three non-dividend stocks in the portfolio are
Shaw Group
(SGR)
, with a PEG of 7, and
Foster Wheeler
(FWLT)
, with a 1.7 PEG.
Union Pacific
(UNP) - Get Report
raised its quarterly dividend to 44 cents a share, an increase of 26%.
recently cut back on his holdings in this railroad stock. The company last month reported a 26.7% profit rise in its third quarter. The stock has a P/E of 18.5, a PEG of 0.9 and a yield of 1.1%.
Union Pacific is owned by top hedge fund manager
, who continues to appear on the Forbes 400 list of richest people in America. Soros also owns
Companhia Vale do Rio Doce
(RIO) - Get Report
, which yields 0.9%,
Texas Instruments
(TXN) - Get Report
, yielding 1.3%, and
Yum! Brands
(YUM) - Get Report
, paying 1.6%.
To see all 15 of the stocks that raised their dividends last week, including the one that raised its annual payout by 233%, check out the
Top Dividend-Raisers for the Week
at Stockpickr.com.
At the time of publication, Altucher and/or his fund had nopositions in stocks mentioined, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for
The Financial Times
and the author of
Trade Like a Hedge Fund
,
Trade Like Warren Buffett
and
SuperCa$h
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
to send him an email.
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