Dividend Stocks Itching to Pay You More

The dividend clock is ticking. Are you ready for it? As the so-called fiscal cliff comes closer, one key component of the tax increases set to trigger on January 1 is the treatment of dividend income. This item is set to change after a decade of record-low tax rates for unearned income. Since 2003, we've gotten accustomed to paying Uncle Sam just 15% of our dividend earnings, but barring a deal between the White House and Congress before year-end, that rate jumps up to whatever you pay for regular income.

That change could have a real, negative impact on income investors, a group that's already gotten shellacked in the last several years on the heels of record-low interest rates and comparatively high inflation. Without further ado, here's a look at five stocks that could be about to increase their dividend payments in the next quarter: Lorillard (LO), United Parcel Service (UPS), 3M Corporation (MMM), The Gap (GPS) and Macy's (M).

Source: The Street

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