An energy company reduced its dividend last week, and a newspaper company eliminated its dividend. Nevertheless, during a week when, according to many investors, we hit at least a temporary bottom, many stocks from various industries raised their dividends.

Stockpickr has reviewed all the dividend declarations for the last week and compiled a list of the top dividend-increasers for the week.

One stock with a huge dividend increase is private education company Strayer Education (STRA), which offers undergraduate and graduate degrees in business administration, accounting, information technology, education and public administration. It boosted its quarterly dividend by a big 33% to 50 cents, up from 37.5 cents per share. It also amended its share-buyback program to repurchase up to $100 million worth of their stock during the next 14 months. Its third-quarter profit increased by 27%, primarily due to rising enrollment. The stock has a P/E of 44 and a PEG of 1.95. Its yield is 0.8%.

The stock is owned by the Morgan Stanley Institutional Small Company Growth Fund, which has four stars from Morningstar and is managed by Dennis Lynch. It has had an average annual return of 17.32% over the last five years. It also owns Techne (TECH), which yields 0.4%, and Greenhill (GHL), which yields 2.9%.

Sara Lee (SLE) also upped its dividend. This maker of branded packaged food products increased its dividend by 5% to 11 cents per share. For its latest fiscal year, earnings were negative, but sales increased by 10%. Their next annual meeting will be held on Wednesday, Nov. 5. The stock has a forward P/E of 10 and a PEG of 1.99, with a yield of 3.8%.

The T. Rowe Price Mid-Cap Value Fund likes Sara Lee. This fund has a rating of five stars and is managed by David Wallack. It has had an average annual return of 15.42% over the last five years. It also likes Nalco Holding (NLC), with a yield of 1.1%; International Paper (IP), with a yield of 5.6%; and Marsh & McLennan (MMC), with a 3% yield.

Questar (STR), the natural gas company, is another stock that bumped up its dividend, raising it 2% to 12.5 cents per share. This is the 256th consecutive dividend without a reduction. Its net income was up 80% for the third quarter of 2008. The stock has a P/E of 10, a PEG of 1.01 and a yield of 1.7%.

Questar is owned by Third Point, a $3.2 billion activist hedge fund, founded by Daniel Loeb in 1995. He is known for going after companies with greedy executives who also happen to be depressing shareholder value. Third Point has had an average annual return of 28.9% since the fund was founded. It also owns MasterCard (MA), with a yield of 0.4%, and MeadWestvaco (MWV), with a 7.3% yield.

For more ideas, check out the portfolio of top dividend-increasers for the week at Stockpickr.com.

Posted on Nov. 5, 2008