Dividends: Raises for the Stockholders

As corporate indicators go, earnings are usually proof of what has been, dividends an indication of what is yet to be. Even in strong years, companies seldom raise dividends unless they feel able to justify the increase by favorable prospects. Last year General Motors chalked up the highest corporate earnings in history; anticipating an even better 1965, G.M. last week raised its quarter-year dividend rate from 65¢ a share to 75¢.

G.M.'s decision also indicated broad confidence in the economy, and many other companies shared its mood. In January, 203 corporations raised their dividends v. 183 a year earlier, according...

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