The Lure of Dividends
With growth stocks scarce, outfits that have increased shareholder payouts deserve a look. Just be sure it's long, hard, and skeptical
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By Eric Wahlgren
Had it with analysts who talk up stocks to investors but trash them in private to colleagues and insiders? Fed up with companies that profess business is fine one day, only to disclose that they're fighting for survival the next? Then Wall Street experts say you may want to take a look at companies that are raising dividends. These days, increases in dividends -- the portion of earnings that some companies pay out to investors in quarterly installments -- may be a better gauge of an outfit's growth potential than any analyst report or company guidance, pros say.