6 Dividend Stocks That Want to Pay You More Money
There are a lot of factors that support increased payouts to continue in 2012. Firms have record cash on hand right now -- S&P firms alone have $1 trillion in the bank -- and payout ratios trail their historical averages. So it stands to reason that investors could find more cash flowing their way over the course of this calendar year.
As far as returns are concerned, that's a big deal.
Over the last 36 years, dividend stocks have outperformed the rest of the S&P 500 by 2.5% annually, and they outperformed nonpayers by nearly 8% every year, all while paying out cash to their shareholders, according to data compiled by Ned Davis Research. The numbers are even more compelling when looking at companies that consistently increase their payouts.
That's why we pay close attention to the firms that are shoveling more corporate cash to shareholders each week. With that, here's a look at six stocks that hiked payouts in the last week .
Well, it finally happened.
By far the biggest news in the dividend world in the last week has been Apple's(AAPL) decision to start paying out a dividend. On Monday morning, the firm announced a $2.65 per share dividend payout, giving the firm a 1.8% yield at current price levels.
While Apple's yield isn't massive, the sheer amount of cash it's going to be paying out is -- Apple's new annual payout is bigger than the market values of 40% of the S&P 500 and makes the firm the second biggest dividend payer on the index behind AT&T(T) . That should help deal with the close-to $100 billion burning a hole in the Cupertino-based firm's pocket.
Apple boasts a massively successful business that's managed not only to develop some of the most popular consumer electronics on the market today -- but that's also managed to sell them with extremely favorable terms. Apple collects far more for each iPhone sale than rivals do for their competing offerings, and Apple sells more phones. While the onus will be on Apple to keep innovating in order to secure such attractive subsidies, the firm hasn't dropped the ball yet.
From a valuation standpoint, Apple is still not a particularly expensive stock, despite its status as a momentum name; to date, the price increases in Apple have been met by fundamental improvements in this stock.