5 Stocks With Increased Dividends in This Tough Market

Last week we saw further market volatility as major indexes continued extending their losses for October, which could turn out to be the worst month for the markets since 1938. There was an announcement from S&P which decreased the expected dividend growth for 2008 to 1.20% and also provided a cautionary outlook for dividends and earnings in 2009.

Despite all the doom and gloom there were several notable dividend increases over the past week.

Microchip Technology (MCHP), a leading provider of microcontroller and analog semiconductors, announced an increase in the dividend to 33.9 cents per share. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased the cash dividend by 9.4% from the dividend level one year ago. The stock currently yields a whooping 6.30%. I doubt that future dividend raises could increase at the same rate, given the high payout ratio, unless of course earnings could triple by the end of the next decade.

Aflac's (AFL) announced that its Board has approved a 16.70% increase in its quarterly dividend from $0.24 to $0.28 per common share effective first quarter of 2009. Aflac is a dividend aristocrat which has increased its dividends for 26 consecutive years. The stock currently yields 2.60%.

Eaton Vance Corp. (EV) announced that its Board has approved a 3% increase in its quarterly dividend from $0.15 to $0.155 per common share. The company is a member of the dividend achievers index having increased its dividends for over 2 decades. The stock currently yields 3.40%.

Goodrich Corporation (GR)announced that its Board approved an 11% increase in its quarterly dividend from $0.225 to $0.25 per common share. Despite this raise and last years double digit dividend increase, the company only has two years of back to back dividend increases over the past decade. The stock currently yields 2.90%.

Airgas, Inc (ARG) announced that its Board approved an 33% increase in its quarterly dividend from $0.12 to $0.16 per common share. The company has paid dividends since 2003 and the new rate is over five times the quarterly dividend payments in 2003. The stock currently yields 1.60%.

As always, the dividend increases list led me to put AFL and EV on my list for further research.

Comments

[User 13958:]

In this market, today, I would not touch anything less than a min. 3% dividend!

2008 Oct 27 12:26 PM

[Stockguy456:]

I pulled out of the market in the spring. I feel comfortable in getting back in now, some would say I am crazy to get in now - but I say they were crazy for not pulling out in time.

When everyone is buying that's when I am selling, when everyone is selling that's when I am buying!

There are some good deals out there

2008 Oct 27 04:53 PM

[notsosmart:]

i can get 4.5% in a cd.why take a chance.i get at the moment 45% in FRO.worth the chance.a little more @ the moment in cd's & less in FRO.good balance.

2008 Oct 28 11:11 AM

[BloggingBanks:]

Notsosmart,

The difference between CD's and dividend growth stocks is that your dividend payment could increase smoothly over time, whereas your CD's yield will stay the same no matter what. As for FRO, the dividend is not stable at all and it fluctuates a lot.

2008 Oct 28 12:42 PM

[notsosmart:]

the dividends in FRO have paid for my stock.since wall st & vegas are now just about the same its worth to gamble with money you can lose.

2008 Oct 28 01:56 PM

[ksmithdc:]

Thanks for that.

2008 Oct 28 02:16 PM

[Kofi Bofah:]

Tobacco [MO/PM] is always a good idea. But we should have been concerning ourselves with dividends BEFORE this 2008 debacle.

2008 Oct 28 02:27 PM

[jackooo:]

K Bofah

I did concern myself with a good dividend. I have little worry with MO and PM and KFT. They have been my best stocks for many many years.

2008 Oct 28 04:17 PM