4 Dow Stocks Likely to Hike Dividends Soon

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In many ways, the Dow Jones Industrial Average is not a very good reflection of the overall stock market. It over-weights companies with higher share prices, not with higher valuations. It also places a lot of emphasis on technology companies and financials while ignoring utilities and basic materials. Furthermore, it contains companies that could hardly be considered “industrials,” such as McDonald’s (NYSE:MCD) and Disney (NYSE:DIS).

But one thing that the Dow is good for is pointing investors toward large, stable companies that are shareholder friendly. Many of the companies in the index don’t just pay dividends but raise their dividends, and investors looking for rising income can find several candidates for their portfolios in this group of 30 stocks.

The following list presents four Dow stocks that regularly raise their dividends and that have paid four quarters’ worth of dividends at the same rate. The implication is that they are set to announce dividend increases in the near future. If these companies do as I expect, especially if they announce substantial increases, then it might be time to get bullish. But if a company fails to announce a dividend increase or if the announced increase is small (e.g., less than 5 percent), then this might be a good reason to consider exiting a position or holding off on buying until the stock falls to a lower price.

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