According to Standard & Poor’s, 2011 is setting up to be an excellent year for dividend increases. To date, at least 150 companies have increased their dividends. And that’s with less than half of the year gone by.
That’s a solid pace, considering that 256 companies increased their dividends in all of 2010. But don’t be fooled by headlines promoting big increases. Even an impressive 20% increase like the one Cablevision announced on Wednesday can leave investors wanting more, since it still only yields 1.7%.
On the flip side, National Bankshares Inc. increased its dividend by only 2.1%, but it yields a more impressive 3.7%. For you, a powerful equity strategy should begin with a dominant one-two punch of consistent dividend increases and an attractive current yield.
Click here for a quick glance at Wednesday’s dividend action.