Monday, October 1, 2012

Payout Appreciation: Some Investors Pile Into Stocks Likely to Keep Raising Dividend

Note: I'm going to be traveling the next couple of weeks so there likely won't be any original posts from me.  I'll be reposting articles I find interesting and applicable during this time though. Below is an article from the Wall Street Journal that points out how money management firms are now focusing on companies that pay and grow their dividends each year.  What an interesting concept!

Call them the new growth stocks.  After rushing into dividend stocks of all stripes this year, some investors are homing in on a more select group: stocks of companies that are likely to keep raising their dividends at a fast clip.

It is all part of the chase for better returns on the heels of the Federal Reserve's announcement last week of another round of bond buying aimed to keep interest rates at rock-bottom levels until the economy improves. As yields on the 10-year Treasury wallow at near-record lows and "junk"-bond yields also are sinking, investors are seeking anything that offers some extra income. READ MORE

Disclosure: I am long VZ, HAS.

TAGS: [VZ][T][SRE][MO][HAS][GCI][CSCO][AEP]

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