U.S. companies added $26.5 billion to dividend payments in 2010 -- a far cry from 2009's $42.4 billion decline -- and analysts predict an even better year for dividends in 2011, a windfall to investors that could lift equity markets higher.
Wall Street's consensus sees the S&P 500 tacking on an 11% gain over the next 12 months -- with lots of ups and downs along the way. That has us inclined to play defense, with an eye toward bargain stocks paying generous, sustainable dividends. Here are our top 11 picks for 2011.
Over the last three years, companies that either hiked dividends or initiated stock buybacks -- both meant to raise price per share -- lost an average of more than 10% in stock price. But cash-rich companies that did both lost more than 21%.
Something unusual is happening in the ever-exciting world of technology: The glamorous high techs that elicited immense awe as global growth leaders are now in the new proletariat class of attractive dividend plays. Here are nine dividend-paying high techs.
Both Allstate and Prudential, the two largest publicly traded insurers, have announced plans to return cash to shareholders.
The Federal Reserve may soon start letting some banks boost their dividends again, according to The Wall Street Journal. If that happens, it would signal that regulators have become comfortable enough with the new financial rules to let institutions hike shareholder payouts.
Visa said Wednesday it's boosting its dividend for the second year in a row. Shareholders will now get 60 cents per share annually, up from 50 cents per share. The news comes in advance of Visa's fiscal fourth-quarter earnings expected next week.
IBM shares soared 69 cents past their record high, set during the dot-com boom, to reach $139.88 per share before closing at $139.66 per share Monday. The rally reflects a slight market upswing and news of strong quarterly earnings from a competitor.
BP may restart its dividend payments early next year after choosing to suspend them in the aftermath of the explosion of its Deepwater Horizon rig in the Gulf of Mexico in April.
The third largest U.S. railroad operator CSX announced Wednesday it would boost its quarterly dividend by 8%, from 24 cents to 26 cents, returning more of its earnings to shareholders.
Microsoft Corp. will sell more than $4.7 billion worth of bonds to fund share buybacks and dividend payments for shareholders of the world's largest software maker.
