3 Stocks With Recent Dividend Boosts
In a time of uncertainty, dividends and rising dividends are one of the best ways to build wealth. In market corrections, the companies that raise dividends allow you to buy more shares at cheaper prices. Once the market stops correcting, and starts its uptrend again, this is an added value benefit from reinvesting the rising dividends.
Caterpillar (NYSE: CAT), the world's largest manufacturer of mining equipment, excavators and earth moving supplies just raised its dividend by 2 cents per quarter to go to 46 cents per quarter. The company is firing on all cylinders, as sales are growing in all regions, especially in North America. Caterpillar sports a 1.8% dividend yield now, and trades at 11 times 2012 earnings. Once the acquisition of Bucyrus (NASDAQ: BUCY) is complete, Caterpillar will be able to expand its foot print even more so in the mining sector.
Intel (NASDAQ: INTC) has raised its dividend twice in the past six months, raising its dividend 16% last month. The company is now paying 21 cents per quarter, good for a yield of approximately 3.5%, much better than what you would be getting on a 10 year Treasury. Not only are you getting a strong dividend from a tech titan, shares are reasonably priced, trading at 9 times forward earnings. As the company moves into tablets and smartphones, capital gains, as well as dividend appreciation are likely in store for Intel shareholders. Sandy Bridge, the Santa Clara-based chip maker's graphics chip is also one of the reasons that Nvidia (NASDAQ: NVDA) was hit with a downgrade today.
The last name is Macy's (NYSE: M), which recently hiked its dividend last month, doubling its dividend from 5 cents per quarter, going to 10 cents per quarter. The company recently reported record earnings, and the company's "My Macy's" initiative is a big reason why. Shares are trading near 52 week highs, and given the fact that Macy's is looking to expand its presence, shares are reasonably priced. CEO Terry Lundgren has done a remarkable job of turning the business around, and increasing shareholder value as a result. Shares have returned 35% over the past 52 weeks, besting the S&P 500's return by 17%.
