2014 Is the Year of Dividend Growth. Here's Why

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Jan. 3 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at dividends on Bloomberg Television's "Street Smart." (Source: Bloomberg)

2014, we're calling this the year of dividend growth.

Time for insight and action.

U.s. corporations are sitting on a tremendous amount of cash.

We talk about this all the time, but look at this.

Cash accounts for 4.8% of all the assets, in other words, cash on the balance sheet.

That goes back to 1960. a lot of cash, and look at this.

Payout ratios are very low.

Again, going back to 1960. only 3.7% of earnings are being paid out in dividends.

Typically, that number is in the 30's. this is why we are making the argument that eventually businesses are going to start paying out more.

Who is likely to start paying more?

Of the 1500 stocks in the s&p 1500, we looked at where the dividend yield was at least one percent, the one year -- current dividend yield was at least three percent, and bloomberg is forecasting dividend increases.

There is a whole team that does exactly that.

Their accuracy is about 88%. these guys are good.

Here they are, 16 names.

There are some names we know on here.

There are too many for me to name all on air, so go to twitter.

I have posted all 16 of these stickers.

But it is out there, dividend

This text has been automatically generated. It may not be 100% accurate.

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