Dividend stocks update: Hunting for dividend-paying stocks with the highest yield might seem like the simplest strategy for investors seeking income, but it's not the best strategy.
First, choice is limited among quality stocks – only 13 S&P 500 Index components boast yields more than 5%. Moreover, outsized yields often accompany a big drop in a stock's price.
The best strategy for dividend investing is to look for companies that continuously increase their payouts. As Money Morning Chief Investment Strategist Keith Fitz-Gerald recently pointed out: "The best companies are dividend 'growers,' meaning they are constantly increasing their dividends. It's in your interest to acquire them because you benefit not only from the cold hard cash paid out from time to time, but also from the growth in your cash flow."
Bank of America Merrill Lynch also found that companies boosting dividends fare better when interest rates rise, as Wall Street experts expect will happen soon.
A total of 284 companies raised dividend payouts in February. Following are 30 notable increases among the 79 for the week ending Feb. 28.
Dividend-Paying Stocks That Just Hiked Their Payouts
Albemarie Corp. (NYSE: ALB) upped its dividend to $0.27 a share for a 1.7% yield.
B&G Foods Inc. (NYSE: BGS) boosted its dividend a penny to $0.34 a share for a 4.35% yield.
Carter's Inc. (NYSE: CRI) increased its dividend $0.03 to $0.19 a share for a yield just above 1%.
Chubb Corp. (NYSE: CB) grew its dividend 13.6% to $0.50 a share for a 2.3% yield.
Covanta Holdings Corp. (NYSE: CVA) boosted its dividend 9% to $0.18 for a 4.07% yield.
Diamondrock Hospitality Corp. (NYSE: DRH) raised its dividend 20% to $0.10 a share for a 2.75% yield.
Just-released: Of the almost 5,000 dividend-paying stocks to choose from, these three companies provide superior payouts and superior long-term grown potential.
Domino's Pizza Inc. (NYSE: DPZ) fattened its dividend by a nickel to $0.25 a share for a yield of 1.34%.