BALTIMORE ( Stockpickr) -- Dividend hikes have been quiet for a second consecutive week after the flurry of announcements earnings season brought investors. Now that announcements are back to normal, the companies who increase their payouts to shareholders are even more telling. After all, companies have less earnings noise to compete with right now, and a dividend increase does more than just catch investors' eyes -- it suggests that a company is fundamentally secure enough to justify parting with additional cash.
While GPS giant Garmin ( GRMN) has benefited in recent years from the popularity of consumer global positioning system devices, economic headwinds of late have curtailed major growth efforts. But with a 100% dividend increase that puts the company's current annual payout at $1.50 per share, the company's effective 3.78% yield should guarantee that share prices make an upward move.
Mead Johnson Nutrition ( MJN) has been performing well since the company's spinoff from Bristol-Myers Squibb ( BMY) last February. Shares are up almost 93% since the pediatric nutrition company IPO'd at what proved to be the beginning of the biggest bull run of the decade. The company's 12.5% dividend hike brings its quarterly payments to 22.5 cents per share, a 1.74% yield for investors.
Security and industrial product conglomerate Tyco International ( TYC) has seen its financial position improve dramatically as the broad economy improved in the last year. Clearly, those improvements have made an impact on management given their decision to increase dividends last week, bringing the company's payouts to shareholders to 21 cents per share.