After a year of steady gains, the market has started to give some of those gains back. While there is never just one reason for anything in the market, a big reason for the recent cooling in the market is rising interest rates.
After years of near-zero interest rates, the Federal Reserve has been slowly allowing rates to rise, and recent unemployment data and wage increases has spooked the market into thinking that the threat of inflation will put the Fed in a position where it has to allow rates to increase faster than previously expected.
While rates were low, yield hunters had to turn away from traditional fixed income assets and turn to the market in their search for yield. There are been a fear over the last year that a money flow from stocks to fixed income would put the brakes on the bull market, and we are starting to see signs that this may be happening.
Dividend stocks have been highly attractive in recent years, and their yields will continue to attract investors, but with rising interest rates, investors will pay the most attention to dividend paying stocks that have a proven track record of boosting their dividends for investors.
If you are bullish on the market, but want to put your money to work in stocks with the best capital programs, and have histories of dividend increases, then look no further. We have compiled a list of five high quality stocks that are expected to announce their next dividend increases during the month of February.