Checking the pulse of dividend increases is an exercise whose goal is to uncover potential dividend growth plays that I might have otherwise missed out on. Another reason for that is to refute the idea that dividend investing is dead. It is also interesting to look for trends in the data, while browsing through the list of dividend increasers. While the REITs have been slaughtered along with other financials, Master Limited Partnerships and consumer staples have done pretty well. But just because I wrote about a certain stock, does not mean that I am going to add it to my portfolio. I need to research it and make sure that it could afford growing its generous distributions.

Stanley Works ( ), which a diversified worldwide supplier of security solutions for commercial applications as well as tools and engineered solutions for professional, industrial, construction and do-it-yourself use, increased its quarterly dividend by 3.1% to 33 cents a share.

The comment by Chairman and Chief Executive Officer John F. Lundgren was particularly bullish: "We remain very focused on the total return we deliver to shareholders and know that our dividend is a key component. We are proud to not only have maintained our dividend during this challenging period, but to raise it for the 42nd consecutive year in the face of this tumultuous economic environment."
This dividend aristocrat currently yields 3.40%.

Besides Stanley Works, several MLPs also raised distributions over the past week. Master Limited Partnerships have kept distribution increases despite the credit crunch, which is why many dividend investors are flocking this sector. MLPs offer both appealing current yields but stable and growing distributions. Not all MLPs are created equal however; the most stable ones are engaged in transportation of oil or natural gas.

El Paso Pipeline Partners, L.P.