Buy these stocks now before they increase their dividends again!

money clock

2016 is rapidly coming to a close, but for dividend investors, there are still plenty of big names expected to boost their distributions before the end of the year.

Dividend investors love the yield that dividend-paying stocks provide, and stocks with track records of dividend increases are particularly attractive.

While income is the primary reason to invest in dividend-paying stocks, another reason is the perceived safety that comes with stocks that reward their investors with quarterly dividends. This is because it is understood that a company would not give back money to its investors unless the company was confident in the present and future state of the company’s underlying business.

When a company announces a dividend increase, it is a sign to Wall Street that the company is very confident in the company’s future, and expects earnings to rise moving forward.

Whether you collect your dividends as cash to do with what you please, or have your dividends automatically reinvested in the underlying security, dividend increases result in a nice bump in your quarterly payments once a year, which is why a lot of dividend investors specifically seek out companies that are known for annual dividend increases.

Despite there being only two months left in the year, there are some big names expected to announce dividend increases, and we want to take a look at five such companies that should announce increases before the New Year.

Symbols: ADP BDX ECL MRK NUE
Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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