3 Stocks With Large Dividend Boosts

Sizable dividend boosts are an excellent sign for investors for two reasons. First, they suggest as much as any other measure that payments are safe. Companies can and do trim payments, but managers are generally loathe to do so, and few would announce increases if they had reason to believe cuts might become necessary. Second, dividends are more important to total returns than most investors believe. According to a 2002 study published in Financial Analysts Journal, over two centuries ended 2001, U.S. stocks provided an average dividend yield of 4.9%. A $100 investment during that period grew to $2,099, net of inflation, assuming dividends were spent, and $37 million assuming dividends were reinvested.

The three companies below don't have the highest dividend yields among S&P 500 index members, however, they have announced the largest increases, committing to spend 25% to 50% more than they had been. (more)