4 Dividend Stocks Showing You the Money

Recs

7

Disney Buys Marvel!

David Gardner called it. He’s up 1,334%! See what David’s recommending that you buy NEXT.

Stock Advisor

Not every company is slashing its dividend these days. Some of the market's better performers are easing up on their purse strings and sending more money out to their shareholders.

Readers of the Motley Fool Income Investor newsletter can appreciate that kind of thinking. Let's take a closer look at four of the companies that inched their payouts higher this past week.

Let's start with Prospect Capital (Nasdaq: PSEC). This closed-end fund, which lends to and invests in obscure companies, is now paying a quarterly dividend of $0.4075 a share. That is a practically negligible improvement over its previous $0.40625 rate, but Prospect has been bumping up its yield every three months for 20 consecutive quarters now.

Yum! Brands (NYSE: YUM) is also sending its investors more burrito money. The company behind the Taco Bell, KFC, and Pizza Hut chains is jacking up its quarterly disbursements by 11% to $0.21 a share. Yum! Brands has been delivering annual upticks since 2004. It also authorized a $300 million share-buyback program, so it's returning money to shareholders in two different ways.

Clarcor (NYSE: CLC) is another pocket-change maker. The maker of filtration and packaging products is boosting its quarterly distributions by 8% to $0.0975. Clarcor's streak of annual payout increases stands at an impressive 26 years.

Finally, we have Calavo Growers (Nasdaq: CVGW). The avocado grower's new annual dividend is $0.50 a share, a healthy 43% over last year's rate. Holy guacamole!

Some of these moves may not seem like much. But when you consider how many companies in recent months have had to cut their dividends, you'll value even small boosts a lot more.

Subscribers to Income Investor can appreciate the companies that send more and more money to their investors. The newsletter service singles out companies that are committed to growing their distributions with market-thumping results.

Want to see what's being recommended these days? Give Income Investor a shot with a 30-day trial subscription. Who knows? Maybe the next thing to get an increase will be your interest.

Like this article? Get our best articles delivered direct to your inbox at no cost. Sign up for Foolwatch Weekly by entering your email below.

Longtime Fool contributor Rick Munarriz pays attention to yield signs. He owns no shares in any of the companies in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 999700, ~/Articles/ArticleHandler.aspx, 11/22/2009 3:28:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
An Open Letter to the Federal Reserve

Related Tickers

11/20/2009 4:01 PM
CLC $32.69 Up +0.37 +1.14%
CLARCOR, Inc. CAPS Rating: ***
YUM $35.73 Up +0.08 +0.22%
Yum! Brands, Inc. CAPS Rating: ****
CVGW $18.45 Down -0.08 -0.43%
Calavo Growers, In… CAPS Rating: ***
PSEC $10.75 Up +0.01 +0.09%
Prospect Capital C… CAPS Rating: ****

Community: Investing Wiki

Term Of The Hour

Fed Model: The Fed Model (not endorsed by the Federal Reserve) hypothesizes that the market is in equilibrium when the earnings yield on the S&P 500 matches the yield on the 10 year Treasury note. Any dissonance in the relationship would show that equity valuations are out of whack.

Want to learn more or edit this definition?
Click here to read more!