24 Dividend Paying Companies Confident in the Economy

Management typically evaluates short and mid-term economic and business conditions when they decide on allocation of limited resources. Cash is one such resource, which could either be reinvested back in the business, or returned to shareholders. Companies typically achieve some optimal balance in allocating cash flows from earnings between owners and the business. It is interesting to note than when management expects rosy business conditions in the next two to three years, dividends have a higher chance of getting raised. Back in 2007 and 2008 when the economic picture was particularly gloomy, the boards of directors of many companies cut dividends in anticipation of financial Armageddon. With assistance from the US Government this Armageddon has been averted. While the economic situation is not as good as it were during the 1990’s, nevertheless the boards of many companies have started raising dividends at an increasing pace. This is a bullish sign, as it shows that managers are mostly optimistic for near-term business conditions.Dover Corporation (DOV) and its subsidiaries manufacture industrial products and components, as well as provide related services and consumables in the United States and internationally. Dover Corporation increased its quarterly cash dividend to $0.275 per share, from the previous $0.26 per share, an increase of 6%. This Dividend Aristocrat has raised distributions for 55 consecutive years. Yield: 2.30% (analysis)... Read more