Stocks that hike their dividends outperform the next six months. Here are a few

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Investors are seeking better yielding dividend stocks as they navigate a higher interest rate environment.

However, the market's reaction to the dividend policy change is also important. In a review of relative price returns, excluding dividends, among Russell 1000 constituents, companies that increased their dividends saw their stocks rise an average of 3.9% in the six months following the announcement, the firm said. Morgan Stanley reviewed data between 2014 and 2022. On the other hand, companies that cut their dividends underperformed even more sharply, down 9.

Given this, Morgan Stanley found some firms that recently raised their dividends by at least 10%. Here are some of those names. Analog Devices shares made the list. In February, the semiconductor manufacturing stock raised its dividend per share by 13%, according to the note. The stock is up about 15% this year, and it has a 1.8% dividend yield.

 

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