In the second quarter, 444 American companies increased their dividends, while only 21 scaled things back. It's hard to keep track of 444 companies, so I've highlighted two stocks that will help you diversify your portfolio and take advantage of this dividend trend. I've also singled out one company you should definitely ignore.
Global engine manufacturer Cummins
Victimized by the recession a few years ago, but adapting to strict environmental standards, the company has really bounced back. Foreign sales in India and Brazil are booming, and demand for natural gas and hybrid engines has been picking up in developed economies.
If I could turn back time
Whether it's because I'm young and full of vitality, or simply just late to the game, I had never heard of Nu Skin
Obviously, this is no reason to run out and buy the stock straight away, but it certainly prompts a closer examination of the company. I started out by checking what my fellow Fools were saying at Motley Fool CAPS, our free online investing community. CAPS investor slamdunk10 wrote late last month:
Look at the products, the number of baby boomers, the emphasis on looking young and in great health, the amount of money spent to appear our best. This company has found a successful niche and is coming out with new products each year. This is the "Apple" of the anti-aging companies.
That's a solid point. More importantly, I like the company's three straight years of record-breaking revenue in the anti-aging industry, which Nu Skin believes will hit $1 trillion as a huge percentage of the global population ages. I'm definitely adding Nu Skin to My Watchlist.
Now is not the time
USA TODAY parent company Gannett
Unlike The Washington Post Co.
A diverse portfolio is crucial to investing. Now more than ever, investors are keen on supplementing that diversity with stocks that generate income. But in Gannett's case, we're reminded that just because a stock follows a trend doesn't mean you should follow the stock.
Interested in dividend stocks? Check out our free report, "13 High-Yielding Stocks to Buy Today."