Investors chasing yields often make the mistake of disregarding the fundamentals behind companies with generous payouts. That's why I like to see growing dividend rates; it's a sign that things are going well enough to allow the company that kind of flexibility.
Let's take a closer look at four of the companies that inched their payouts higher this past week.
We'll start with Harley-Davidson (NYSE:HDI). Income investors are in hog heaven after the motorcycling king of the road bumped its quarterly dividend 17% higher, to $0.21 per share. Between the company's forays into China and its status as one of the most gifted shares in the country, it doesn't hurt that the company has revved up a stunning 27% in annualized gains since 1990.
PepsiCo (NYSE:PEP) was another pop star. The soft drink and salty-snack giant sweetened its payout by inching its quarterly distribution 15% higher, to hit $0.30 a share. Since 1972, the company has managed to grow its dividend rate every single year. There are no guarantees on Wall Street, but the chances of Pepsi keeping that streak going are pretty darn good. The company is looking to earn $2.95 per share this year and is going to be paying out only 41% of that -- or $1.20 a stub -- in payouts.
CNS (NASDAQ:CNXS) was another hiker. The company that improves its customers' breathing with its Breathe Right nasal strips is now making its investors breathe a little easier, too. The company's payout is going up a penny, to $0.07 a share every three months. CNS is hitting the right note with shareholders on the lookout for income-producing vehicles. It started paying out dividends only three years ago but has gone on to inch up its rate every year. CNS was recommended to Motley Fool Hidden Gems subscribers shortly after it initiated its first distribution, and the shares have gone on to more than double.
One of the companies with the largest hikes may also seem like one of the most unlikely players to loosen up its purse strings. People tend to associate Brink's (NYSE:BCO) with the protected trucks that go around transporting corporate money securely. It's getting a little liberal with its own coinage. The company's quarterly dividend is soaring 150% higher, to $0.0625 a share. It pushes up the yield to only a little more than 0.4%, but it's the thought that counts.
Subscribers to our Income Investor newsletter can appreciate the companies sending more and more money to their investors. Analyst Mathew Emmert singles out companies that are committed to growing their distributions with market-thumping results.
Want to see what Mathew's liking these days? Go ahead and give his newsletter service a shot with a 30-day trial subscription. Who knows? Maybe the next thing that will get hiked will be your interest.
Longtime Fool contributor Rick Munarriz pays attention to yield signs. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
