These 25 Stocks That Pay Dividends Just Hiked Payouts for Better Yield

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Stocks that pay dividends are a top choice for income in today's low-interest environment.

Compare dividend stocks to the income alternatives. U.S. Treasury yields sit near historic lows. Nearly 22% of total developed market countries' debt carries a negative yield.

Global bond yields have fallen amid slow economic growth, plunging oil prices, and easy money policies by central banks. As a result, U.S. bond yields are sinking as risk-averse investors pile into U.S. debt for safer and slightly better returns.

Meanwhile, most stocks that pay dividends have increased yields. And they offer investors the chance at capital appreciation.

Last week 57 companies boosted payouts, including Cisco Systems Inc. (Nasdaq: CSCO), PepsiCo Inc. (NYSE: PEP), and United Parcel Service Inc. (NYSE: UPS).

Here are 25 notable dividend hikes from the week ending Feb. 13.

Stocks That Pay Dividends: 25 New Increases

The Power of Dividend Stocks

Stability. Research shows that dividend-paying stocks have outperformed non-dividend payers in four of the last five decades. And during periods when the Fed's monetary policy is neutral or easing, the gain for dividend-paying stocks is 12.3% vs. 6.2% in neutral environments and 10.0% vs. -2.5% in easing periods.
Performance. Dividend-paying stocks outperform non-dividend paying stocks by even more in down markets than they do in up markets. That's because dividend payers attract investors when the share price falls and the dividend yield rises.
Growth. Investors can substantially expand their asset base when they consistently reinvest dividends. In fact, 85% to 90% of total stock market returns come from dividends and the reinvestment of those dividends.

AllianceBernstein Holding LP (NYSE: AB) raised its quarterly dividend $0.12 to $0.57 a share for a 9% yield.

Allstate Corp. (NYSE: ALL) hiked its quarterly payout $0.02 to $0.30 a share for a 1.68% yield. The insurance giant has been boosting its dividend for the last four years.

Cisco Systems Inc. (Nasdaq: CSCO) sweetened its quarterly payout 10% to $0.21 a share for a 2.85% yield. The dividend hike is its fifth in four years. The tech titan initiated dividend payouts in March 2011 and upped payouts twice in 2012.

Coca-Cola Enterprises Inc. (NYSE: CCE) increased its quarterly dividend $0.03 to $0.28 a share for a 2.56% yield. The hike is the eighth consecutive boost from the bottling behemoth.

Dunn & Bradstreet Corp. (NYSE: DNB) hiked its quarterly payout 5% to $0.46 a share for a 1.4% yield.

Dominion Resources Inc. (NYSE: D) raised its quarterly payout 8% to $0.647 a share for a 3.55% yield. The energy company has been increasing its dividend for the last 12 years straight.

If you aren't a Money Morning Member, sign up now for free to see 19 more dividend stocks that just raised payouts. You'll also get this Members-only report: "How to Make 2015 Your Wealthiest Year Yet." It tells you the three habits to dump immediately, the single most effective strategy for your portfolio, and five stocks to get you started to a wealthier you.

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