Last week was characterized by massive sell offs by investors, which fear that the worst is definitely going to happen. Despite the fact that the bailout plan was approved by congress, that didn’t improve investors’ sentiments. The US stock markets had the worst week ever. The 50% dividend cut from Bank of America (BAC) on Monday, which fellow blogger David Templeton reported on didn’t help either. There were rumors floating around that GE might have to cut its dividends as well, which the company strongly denied. So far in 2008 the stock market has erased nearly all the bull market gains from 2003-2007 as many indices around the world fell to levels not seen since the dot com crisis. Asides from dividend cuts in financials however, dividend investors did pretty well as many companies outside of the financial sector continued raising their distributions to shareholders.

Last week there were several companies which announced increases in their annual dividend payments to shareholders:

United Technologies Corp. (UTX) announced a 20.3 percent quarterly dividend increase to 38.5 cents per common share. CEO Louis Chenevert said, "In today's tough economic environment, UTC's balanced portfolio, global footprint, and seasoned executive team continue to deliver solid results. This dividend increase, consistent with our pattern over many years, reflects our confidence in sustained earnings growth. UTC's liquidity and free cash flow remain strong."
UTX has been increasing its dividends for the past 14 consecutive years. Annual dividend payments have increased over the past 10 years by an average of 14.20% annually, which is the same as the growth in EPS. This dividend achiever currently yields 3.20% based off its new dividend rate. I think that this company is a steal at this moment. I will be looking to add to my position there.

TEPPCO Partners, L.P. (TPP) declared a third quarter cash distribution of $0.725 per unit.