With the exception of the summer earnings season, the months tend to be slow in terms of news for the market, as traders and investors take vacations and trading volumes shrink.
It is also a slow time for dividend traders looking to get into securities ahead of dividend increases. The majority of dividend increases occur during the first half of the year, but there are still plenty of big name stocks that have yet to boost their dividends, and some of these will announce their next dividend increases in the weeks ahead.
Dividend stocks have been highly popular in the years since the financial crisis, as investors turned to them in order to find the yield they could no longer find in fixed income assets with the Federal Reserve keeping interest rates near zero.
Now that interest rates have started to rise, there is concern that we will see a money transfer out of dividend stocks and back into traditional fixed income assets. So far this not occurred to the level anyone feared, but there is always the risk that another rate hike or two could have an impact on dividend stocks, which is why it is important for dividend hunters to pay special attention to dividend stocks that have a proven track record of dividend increases, since they will be partially shielded from any potential money transfer back into fixed income assets.
Let’s take a closer look at five stocks that are likely to announce dividend increases in the coming weeks.