These 17 Stocks That Pay Dividends Just Sweetened the Deal for Investors By Diane Alter

Falling Treasury yields strengthen the case for buying stocks that pay dividends. Last Thursday the yield on the benchmark 10-year U.S. Treasury note hit 2.33% - a 15-month low - and the popular income vehicle ended the week at 2.34%.

Dividend-paying stocks not only offer attractive income options, but also provide the potential for capital appreciation.

And companies continue to show appreciation to shareholders via rising distributions. Annual dividends by S&P 500 companies are projected to grow 9.9% this year to a record $39.98 a share, up from $34.80 a share in 2013, according to data provider FactSet.

Regional banks dominated the 16 dividend boosts and sole special dividend declared last week. Following are the 17 stocks that pay dividends that hiked their payouts in the week ending Aug. 29.

American Strategic Income Portfolio Inc. III (NYSE: CSP) upped its monthly dividend 1.8% to $0.04 a share for a 6.62% yield.

Bank of Nova Scotia (NYSE: BNS) boosted its quarterly dividend 3.1% to $0.60 a share for a 3.66% yield.

Emerson Radio Corp. (NYSEMKT: MSM) declared a special $0.70 per share dividend payable on Sept. 30 to shareholders of record Sept. 12. Shares gained 25.8% to $2.01 on the news.

Escalade Inc. (Nasdaq: ESCA) increased its quarterly dividend a penny to $0.10 a share for a 2.77% yield.

First Connecticut Bancorp Inc. (NYSE: FBNK) fattened its quarterly dividend 25% to $0.05 a share for a 1.31% yield. "We are pleased to increase our dividend for the second consecutive quarter and reward our shareholders due to our continued positive earnings momentum," said Chief Executive Officer (CEO) John J. Patrick, Jr.

Goldman Sachs Group Securities STRATS Series 2006-2 (NYSE: GJS) goosed its monthly distribution 0.5% to $0.19 a share for a 1.32% yield.

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Harris Corp. (NYSE: HRS) hiked its quarterly dividend a nickel, or 12%, to $0.47 a share for 2.63% yield. The boost represents the company's 13th consecutive annual dividend increase. "The increased dividend reflects our continuing ability to generate strong free cash flow and our confidence in the company's long-term outlook," said CEO William M. Brown.

Intuit Inc. (Nasdaq: INTU) increased its quarterly dividend $0.06, or 31.6%, to $0.25 a share for 1.2% yield. Barclays last week increased its price target on the tech giant to $90. The firm said acceleration into online business through 2017 should fuel top-line growth. Shares closed the week at $83.18.

Kewaunee Scientific Corp. (Nasdaq: KEQU) raised its quarterly dividend a penny to $0.12 a share for a 2.66% yield.

MB Financial Inc. (Nasdaq: MBFI) hiked its quarterly dividend $0.02 to $0.14 a share for a yield just shy of 2%.

Old Line Bancshares Inc. (Nasdaq: OLBK) juiced its quarterly dividend a penny to $0.05 a share for 1.34% yield. "We are pleased that our profitability allows us to reward our shareholders while also allowing us to continue to grow capital to support loan growth," said CEO James W. Cornelsen.

Raven Industries Inc. (Nasdaq: RAVN) raised its quarterly dividend a penny to $0.13 a share for a near 2% yield. The hike was the 28th consecutive annual boost from the industrial products maker.

Solera Holdings Inc. (NYSE: SLH) sweetened its quarterly dividend 15% to $0.195 a share for a 1.28% yield. The hike is the fifth consecutive annual increase since the software company initiated dividends in 2010.

TFS Financial Corp. (Nasdaq: TFSL) restored its quarterly dividend last week, four years after it was forced to halt payouts. Cleveland's third-largest bank will begin paying a $0.07 per share quarterly dividend on Sept. 25, for a 1.94% yield. The bank expects to pay a dividend of up to $0.28 per share over the next year. "We're excited about our future, and look forward to continuing to deliver value to our shareholders, customers, associates, and communities we serve," the company said.

Towers Watson & Co. (NYSE: TW) boosted its quarterly payout a penny to $0.15 a share for a 0.55% yield.

Unity Bancorp Inc. (Nasdaq: UNTY) upped its quarterly distribution a penny, or 50%, to $0.03 a share for a 1.37% yield. The Clifton, N.J.-based bank also successfully completed a 10-for-1 rights offering last week. Shares were sold at $8.30, for gross proceeds to the company of $6.3 million, the maximum offered. The offering was significantly oversubscribed, with $16 million collected. The excess will be promptly returned to shareholders.

Westlake Chemical Corp. (NYSE: WLK) hiked its quarterly dividend 31% to $0.16 a share for a 0.68% yield. This marks the 40th successive quarterly dividend Westlake has declared since its initial public offering in August 2004.

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