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Dividend stocks update: Dividend-paying stocks provide a solid means by which to generate investing income during times of rock-bottom interest rates.
But with interest rates ticking up recently, and the U.S. Federal Reserve winding down its quantitative easing program, investors may wonder whether dividend stocks will remain a good choice should interest rates continue to rise.
The answer, once again, is to focus on companies that continuously increase their payouts. Such companies have historically performed better than those without dividends in the wake of Fed rate hikes, according to Fidelity Investments and Ned Davis Research.
And investors holding dividend stocks with a track record of boosting payouts should expect even bigger gains moving forward, explains Fidelity Institutional Portfolio Manager Naveed Rahman. "The good news for dividend investors… is that dividend payout ratios are still near all-time lows – meaning there is significant potential for payouts to increase going forward."
Following are 25 companies that hiked their payouts last week.
Dividend-Paying Stocks That Just Boosted Their Payouts
Capstead Mortgage Corp. (NYSE: CMO) raised its dividend $0.03 to $0.34 a share for a 10.45% yield.
Cohen & Steers Infra Fund Inc. (NYSE: UTF) upped its payout a penny to $0.37 a share for a yield of 6.74%.
Cohen & Steer Quality Income Realty Inc. (NYSE: RQI) boosted its dividend 5.6% to $0.19 a share for a 7.21% yield.
Colgate Palmolive Co. (NYSE: CL) polished its dividend by 5.9% to $0.36 a share for a 2.26% yield.
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Douglas Dynamics Inc. (NYSE: PLOW) hiked its dividend 2.4% to $0.21 a share for a 5% yield. The Milwaukee-based maker of snow and ice control equipment started paying dividends in December 2010 (it went public in May of that year) at 18.26 cents.