Get ready for a fatter dividend check in the mail real soon.
With Corporate America sitting on a record amount of cash, in part boosted by tax reform, executives have shown a desire to lift dividend payouts. Goldman Sachs points out that 29 S&P 500 companies raised their dividends in January, and for the first year since 2012 no companies cut payments. That has prompted Goldman to boost its 2018, 2019 and 2020 dividend estimates by 3% to 5%.
"Since the start of the year, the 2018 dividend swap contract has climbed by 1.5%, approaching our estimate of $54, which represents 10% growth vs. 2017," Goldman says. Information technology and financials stand to post the strongest dividend per share growth in 2018, according to Goldman's projections.
For those looking for high quality dividend stocks, the first stop should be the Dow Jones Industrial Average. With the Dow off its all-time highs and global growth still strong, it's hard to bypass some attractive yields among the Blue Chip Index.
A couple names that have caught TheStreet's attention.
Dividend yield: 2.6%
Quick analysis: Stock is hovering around 17-year highs on signs the tech giant has stabilized its core networking business. The company has more than $70 billion in cash, and plans to repatriate a good chunk of that under the tax reform plan.
Dividend yield: 3.4%
Quick analysis: "I think Wall Street is starting to see the story we have been talking about, we have re-formed the company," Coca-Cola president & CEO James Quincey recently told TheStreet. "It has taken a lot of work, but we are starting to see the progress." Coke gained market share in several beverage categories in 2017. The company's solid sales and profit outlooks for 2018 have also sparked renewed confidence in the stock on Wall Street.
Ready for the week ahead in these more volatile markets? Probably not. Watch Jolt below to get a flavor on the week ahead.