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Top 10 Dividend Stocks of the Week

These are rewarding their investors by raising their dividends.

Despite the fact that last week was a light one on Wall Street before the Labor Day weekend, several companies took the major financial step of increasing their dividends, providing shareholders with an added incentive to stay long.

Stockpickr has sorted through the list of last week's dividend-raisers and extracted the ones that offer the highest yields in the

Top 10 Yielding Dividend-Increase Stocks for the Week

.

One of the highest-yielding stocks on this week's list is

Altria

(MO) - Get Report

, which yields 4.3% and just increased its quarterly dividend by 8.7% to 75 cents a share.

Last week, the tobacco company's board of directors announced plans to spin off Phillip Morris International.

Also, last Friday, a judge ruled in favor of Altria, throwing out a lawsuit filed by three people from Maine claiming deceptive and unfair advertising relating to the company's so-called light cigarettes. The stock has a price-to-earnings (P/E) ratio of 13 and a P/E-to-growth (PEG) ratio of 2.2.

Altria is one of the most widely held stocks by institutions, among them, the

Vice Fund

, which has generated an average annual return of 18.7% for the last three years.

The fund invests more than 80% of its assets in stocks that are considered socially irresponsible. The Vice Fund also contains

Diageo

(DEO) - Get Report

, the London-based distributor of liquor, wine and beer. Diageo has a P/E of 17, a PEG of 1.6 and a yield of 2.4%.

Another stock on the raised-dividend list is

Canadian Imperial Bank of Commerce

(CM) - Get Report

, which offers a yield of 3.2% and just announced a dividend increase of 13% to 87 cents (Canadian).

CIBC, which trades on the

New York Stock Exchange

, doesn't appear to be affected by the subprime-mortgage market as much as many U.S. banks, as the company just reported a 26% increase in net earnings for the latest quarter. The stock has a forward P/E of 11 and a PEG of 1.2.

CIBC falls into the

Deep Value $80-$100-$120 Cramer Thesis

, a Stockpickr list of stocks that have a market capitalization greater than $250 million, a share price greater than $75 and less than $100, and a PEG less than 2.0.

Another stock in the portfolio is

Freeport-McMoRan Copper & Gold

(FCX) - Get Report

, a mining company that happens to be one of Jim Cramer's

Big Believer Plays

along with

Caterpillar

(CAT) - Get Report

TheStreet Recommends

and

Boeing

(BA) - Get Report

. The stock has a P/E of 10, a PEG of 0.83 and a yield of 1.5%.

Deere

(DE) - Get Report

is an additional stock in the dividend-increase portfolio. The heavy-machinery maker just increased its dividend by a significant 14% to 50 cents a share, to yield 1.5%.

It also announced a 2-for-1 stock split. Last week, it announced the completion of its acquisition of Chinese tractor company Ningbo Benye. Deere's stock offers a P/E of 18 and a PEG of 1.8.

Deere also appears in

Cramer's Ag Stocks

, a list of agriculture stocks that Cramer favors. Some other stocks in the Ag portfolio are

Bunge

(BG) - Get Report

, which yields 0.8%,

The Andersons

(ANDE) - Get Report

, which yields 0.7%, and

Monsanto

(MON)

, which yields 1%.

For the complete list, check out the

Top 10 Yielding Dividend Increase Stocks for the Week

on Stockpickr.com.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, 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;

click here

to send him an email.

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