The earnings season has barely begun. But we already know that companies are in big trouble. Their dividends told us.

More companies cut dividends in the first quarter of 2009 than since 1955, when Standard & Poor’s began tracking dividends.

Historically, many more companies raise dividends than cut or suspend them. In the first quarter – for the very first time – the ratio reversed. For every three companies raising dividends, four cut them.

It’s yet another red flag on how tight credit still is.

But how about those dividend hikers?

There are many that have raised dividends by 5-10 percent or more this past quarter. And you can even find some – like Shell and AstraZeneca PLC. (NYSE:AZN) – that have upped their dividend payments by over 10 percent.

Raising dividends in this period of tight credit and slumping demand is either a huge bullish statement on the prospects of the company in question or...

The biggest con job this side of the Madoff scandal.

Occasionally I’ve found a dividend hiker I don’t like. For example, General Dynamics Corp. (NYSE:GD) raised its dividend this month but also announced that it would be laying of 12 percent of its workforce. This is not a company confident of future earnings growth.

But I’ve found that 98 percent of dividend hikes are legit – made because the company has deep reserves of cash and revenues that are actually going up.

These companies make good investments right now. You’d be getting a double bang for your buck: Rising dividend checks and also share prices poised to rise.