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Five stocks that will boost their dividends by year’s end

The year is winding to a close, but there are still plenty of big name stocks due to announce dividend increases before the end of the year.

The stock market has had a great year, with the major indexes trading near record levels as we approach the all-important holiday shopping season. Valuations have risen, and with interest rates expected to rise a few more times before the end of next year, analysts are starting to wonder when a money transfer will occur from stocks back into traditional fixed income assets.

Years of low interest rates have helped drive stocks to record highs, but as interest rates start to rise there will eventually be a transfer of money out of dividend stocks as yield hunters move into more attractive fixed income assets, which has the potential to put the brakes on the bull market investors have enjoyed in recent years.

Not all dividend stocks will get hit too hard, and the safest dividend-paying stocks are those with a long track record of dividend increases. Dividend increases illustrate a company’s ability to navigate various market conditions, and management’s belief in the company’s underlying business. Hence, investors will likely hold on to these dividend-paying stocks even as they look to put some of the money back to work in fixed income assets.

Here are five stocks that are expected to announce their next dividend increase before the end of the year.

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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.