Income Investments: 3 Stocks That Are Boosting Their Dividends

Best Buy Co., Inc. (BBY) announced today that it will boost its quarterly dividend by 7% to 15 cents a share, up a penny from the previous dividend payout of 14 cents. Best Buy doesn't have a particularly high-dividend yield right now with its 60 cent annual dividend representing only about 1.6% of current BBY stock pricing. But the increase in the dividend certainly sweetens the appeal of Best Buy for investors. The No. 1 U.S. electronics retailer, Best Buy said the new dividend will be payable on Oct. 26 for shareholders of record on Oct. 5. BBY stock has suffered so far in 2010, down about 10% year to date, but this dividend increase may give investors incentive to buy in now and bank on a recovery.

Duke Energy Corporation (DUK) is a high-yield dividend stock that has long been a staple of income investors. As a utility company, it has a very reliable revenue stream and thus can afford to give its profits back in the form of big dividends. The long history of payouts continues as Duke announced Wednesday June 23 that it will increase its dividend by half a penny to 24.5 cents per share. Doesn't sound like a big dividend increase, does it? Well the total is much more important than the increase since the 98 cent annual dividend gives Duke a whopping 6% yield at current valuations. That's a high dividend yield investors can take to the bank in these troubled times. Also good news to new investors: The dividend is payable on September 16 to shareholders of record at the close of business on August 13, so there's time to buy in before the increase.

Darden Restaurants Inc. (DRI) reported disappointing earnings on Wednesday, saying that its fiscal fourth-quarter EPSs slipped amid continued dampened consumer spending. But on the plus side, Darden announced a dividend for the quarter of 32 cents a share, up from 25 cents previously, and boosting DRI dividend yield to about 3%. Darden has had a tough go of it in the recession as diners look to cut back spending and are eating out less. But after a very sluggish 2009, shares have bounced back +13% year-to-date -- considerably better than the broader market -- and could be showing signs of life. If earnings start to turn around, the company could have a lot of room to run in 2010.

As of this writing, Jeff Reeves did not own a position in any of the stocks named here.