Dividends are back in style on Wall Street, with S&P 500 companies alone expected to raise their payouts this year by a whopping 10 percent, USA Today reported.

Howard Silverblatt, index analyst at S&P Dow Jones Indices, is confident the dividend hikes will hit 10 percent in 2014 because of reporting already compiled.

He said 353 companies in the S&P 500 have committed to raising their dividends by a collective $348 billion.

Editor's Note: These 38 Dates Are Key to Bagging $313,038

The overall dividend trend is hitting a multi-decade high, according to USA Today. Silverblatt noted 421 S&P 500 companies are currently paying a cash dividend, the highest total since September 1998.

The newspaper advised that investors should not become too complacent, however, because "companies can and do rapidly cut dividends too when the economy sours. Tax changes by Congress could also affect companies' dividend plans. "

The biggest dividend increases for 2014 by S&P 500 companies are:

• Vulcan Materials, $0.20 per share, up 400 percent
• Danaher, $0.40, up 300 percent
• Morgan Stanley, $0.40, up 100 percent
• SunTrust Banks, $0.80, up 100 percent
• Progressive, $0.49, up 73 percent

Bank of America Merrill Lynch strategists agree with the 10 percent 2014 dividend hike estimate from S&P, MarketWatch reported.

Savita Subramanian, the firm's head of equity and quantitative strategy, said there are multiple reasons to be bullish on the market as a result.

"Valuations are still supportive, as most metrics we track suggest the S&P 500 is still trading below historical average levels. Sentiment also remains negative, suggesting healthy return, as cash levels are still high, the [institutional] buyside is more conservatively positioned than ever, and strategists are still recommending an underweight in equities," she wrote in a research note obtained by MarketWatch.

In dividend investing, the thought is that if a company has consistently increased its dividend during the years, the pattern will likely continue, The Motley Fool explained.

The Fool compiled a list of 10 companies that have raised their dividends for the past 50 years or longer: Diebold, American States Water, Dover Corp., Northwest Natural Gas, Procter & Gamble, Emerson Electric, Genuine Parts, 3M Corp., Parker-Hannafin and Vectren Corp.

Editor's Note: These 38 Dates Are Key to Bagging $313,038

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