Number of Companies Lifting Dividends Is Up

Companies continued to be more generous with cash dividends in 2005, new data show. A total of 1,949 dividend increases were recorded by Standard & Poor’s for the year, 11.7% more than the 1,745 increases in 2004, the firm said Tuesday.

In December the number of dividend increases was 166 compared with 167 a year earlier, S&P; said. But 196 companies declared extra dividends in the month, up 14% from the 172 extras in December 2004. Extra dividends are a way for companies to reward investors without committing to a sustained increase in quarterly dividends.