Enter Procter & Gamble, the world's biggest consumer-products maker. Tuesday, it raised its common payout for the 53rd year in a row. The consumer-staples sector "has far more opportunity for dividend increases than other sectors right now," says Richard E. Helm, a senior portfolio manager for the Cohen & Steers Dividend Value Fund. Though not insulated from the slide in consumer spending, these companies continue to generate strong cash flow because they make things that people need, rather than just want. Cincinnati-based P&G (the subject of a favorable Feb. 9 article at Barron's.com) will pay a new quarterly of 44 cents a share, up 10% from 40 cents, giving the stock a 3.39% yield. Disbursement is set for May 15 to holders of record April 24. The ex-dividend date is April 22. P&G has been making payouts since its incorporation in 1890. A Dow Jones industrials component, P&G (PG) recently changed hands at about 52. Its 52-week range is 73.57 to 43.93. The company expects to repurchase $8 billion to $10 billion worth of its stock in fiscal 2009, which ends on June 30.

Seagate last Monday suspended its quarterly common dividend of three cents a share (which had been sliced from 12 cents in January) despite upbeat revenue projections. Reason: weakened personal-computer sales. The move, which Seagate said was to "further enhance liquidity," will save the company $60 million annually. Seagate also said that it plans more restructuring. The stock shed over 8% of its value on the dividend news and a forecast of gross margins below analysts' estimates. Seagate recently traded around 6.70. Its 52-week range: 22.78.-2.98. The company raised its revenue guidance for its third fiscal quarter (ended March 31) to $2.1 billion, from an earlier $1.6 billion to $2 billion. It expects fiscal fourth-quarter revenue of $1.9 billion to $2.2 billion. Cash, cash equivalents and short-term investments at March 31 totaled some $1.5 billion, compared with $1.3 billion the previous quarter.