You know what’s not sexy? Dividend stocks. You know what is totally beating the market right now? Dividend stocks. If you drive a high-priced Ferrari or Porsche, this article might not be for you. If you use a fancy financial advisor to manage your stock portfolio, then maybe you like the sex appeal of the high flying IPOs coming to the market. If you have multiple accessories for your dog -- you should probably just stop reading.

After the financial crisis of 2008, companies worldwide cut back on just about everything. They laid off employees, cut back on perks, chopped dividends, and trimmed overhead wherever they could. The result today is that global companies have more cash on hand than they’ve had in ages. As of late March this year, U.S. companies were holding $1.9 trillion in cash -- a record not seen for a long, long time. So many of them are now starting to put that cash to use by increasing their dividends and rewarding shareholders who have stuck by their side. In 2010, dividend increases in the S&P 500 went up 62% (from 157 to 255), and 2011 should shape up to be even better. For investors, this means greater gains in the market

Source: Motley Fool

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