One of the simple-minded truths of Wall Street is that companies don’t raise their dividends when they are pessimistic. If they think that in the next year or two they might need that money, they won’t raise the dividend, because once dividends are paid….they’re gone.
Very recently, Huntington Bank raised their dividend a sweet 38% so that it is now paying over 3% on the current stock price. That shows confidence and I might go even further to say that it implies optimism about the American Midwest where Huntington lives.
I like Huntington; I’ve owned it in the past but just bought a little this week for the first time in a while. You could do worse than a relatively safe 3%, especially compared to CD rates.