Morgan Stanley Highlights Dividend Stocks as September Trading Turns Volatile

According to CNBC, Morgan Stanley screened the Russell 1000 for companies that raised dividends by at least 15% quarter over quarter in the past 12 months and highlighted East West Bancorp, Packaging Corporation of America and Devon Energy among its picks. East West Bancorp raised its quarterly dividend by 20 cents to 80 cents a share in January, reported second-quarter earnings of $2.63 per share on revenue of $791 million in July, and lifted its full-year net interest income growth forecast to 7% to 9% from 6% to 8%. Packaging Corporation of America increased its quarterly dividend by 20% in May, bringing the annual payout to $6 a share. Devon Energy, which Morgan Stanley called its favorite exploration and production name in the sector on Friday as oil prices approached $100 a barrel, raised its dividend to 32 cents per share in May. Morgan Stanley strategist Todd Castagno said dividends can provide a steady income stream, signal confidence to the market and help stabilize portfolios during periods of uncertainty and high valuations.