By Jonas Elmerraji
Posted on Nov. 10, 2009

After six straight days of gains, the markets are taking a breather today, which gives us the chance to focus our attention back on the stocks that announced increased dividends last week.

Increasing dividends is a significant development that investors shouldn’t overlook, whether they’ve focused on dividends in the past or not. Historically, companies that pay dividends materially outperform those that don’t, and when the market turns bearish, dividends could be the only semblance of return that investors see for a while.

That’s why every week Stockpickr reviews recent dividend declarations and compiles a portfolio of dividend-increasers. These stocks represent some of the most enticing investments on the market right now.

One of last week’s bigger dividend hikes came from Polo Ralph Lauren (RL). The apparel maker doubled its dividend payouts from 5 cents to 10 cents per share. The increase came after RL announced a 10% jump in its fiscal second-quarter profits, received an upgraded to Goldman Sachs’ Conviction Buy list.

2009 has been a terrific year for RL. Shares have gained 80% since January, and sales have continued to grow despite cooled consumer sentiment for retail products. This company’s quick reaction to the recession, including paring back inventories and reacquiring brand licenses at reduced prices, should serve its shareholders well going into 2010. An increased dividend is only the latest affirmation of that.

One fund that sees value in Ralph Lauren is the Baron Asset Fund, a $2.6 billion no load fund managed by long-term investor Andrew Peck. The fund also counts holdings of Charles Schwab (SCHW), with a dividend yield of 1.35%, and Southern Union (SUG), with a dividend yield of 2.99%.

While most freight companies are struggling in the current economic climate, CH Robinson Worldwide (CHRW) is actually thriving -- at least enough to declare a dividend hike for shareholders of record on Dec. 4. The freight logistics company, which handled approximately 7.3 million shipments last year for more than 32,000 customers, offers investors a unique business model that spares it from being highly leveraged. That’s an attribute that investors are looking for as credit becomes harder to come by.

That model served CH Robinson well in its third quarter, with profit rising 2% on higher margins. One fund that’s benefiting from that is the Vanguard PRIMECAP Fund, which holds Morningstar’s coveted five-star rating.

Among the fund’s other holdings are FedEx (FDX), with a dividend yield of 0.54%, and Monsanto (MON), with a dividend yield of 1.52%.

For the rest of this week’s dividend stocks, including Underworld Resources (UW) and Emerson Electric (EMR), check out the Dividend Stocks for the Week portfolio on Stockpickr.

And if you haven't already done so, join Stockpickr today to create your own dividend portfolio.