Dividends4Life: 3 Stocks That Should Soon Amp Up Their Dividends

With bond yields on the rise, a whole slew of dividend-paying companies are going to have to make some tough decisions if they hope to keep investors interested. A few of these companies are going to have to take some drastic action too — by cranking up their payouts so their risk/reward ratios make sense. Of course, while the reasons these organizations should up their dividend payout soon are solid, that doesn’t necessarily mean they’ll do so.

Investors shopping for yields — and rising yields in particular — might want to think long and hard before diving into any of these three stocks. All three would need to offer up some strong reassurances that better payouts are on the way: In April, when Apple (AAPL) finally acquiesced to David Einhorn’s wishes and upped its payout 15%, the market cheered. What the market didn’t seem to recognize is that Apple’s improved dividend was — and is — still just a pittance. Western Union (WU), which reliably makes good money, but keeps a little too much of it. American Express (AXP) needs to loosen up on the purse strings. The current AXP dividend yield is a paltry 1.2%, but it’s not like the charge card outfit can’t afford to spread more of the wealth now.

Source: InvestorPlace

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