While chasing high growth stocks over the last 15 years was exciting (at least while their stock prices were going higher), the market crash that seems to always ensue is finally taking its toll.

Many individual investors continue to keep their money on the sidelines following the bear market of 2008 when the S&P 500 plunged nearly 41%. In past years, these investors would have kicked themselves for missing the subsequent 44% rally that followed in 2009. However, these investors have few regrets after being burned so frequently by chasing these rallies in the past.

Gone are the days when these investors would accept Wall Street’s creative wisdom in order to justify inflated stock prices. Buying a hot growth stock at the right time could make you a millionaire regardless of how expensive the stock may appear. While a few made it rich, many more saw their stock portfolio’s crushed by chasing these elusive returns.

As investors survey the financial markets in 2010, a new investment style is beginning to look more attractive – dividend investing. Of course, it’s not a new investment strategy, but rather a tried-and-true investing strategy followed by financial icons from Benjamin Graham to Warren Buffet.

Investing in solid companies that distribute a portion of their earnings back to their shareholders used to be considered old fashion. Receiving a cash dividend each quarter was considered a nice-to-have, but certainly not a requirement for our investment strategy. After all, the real money would be made as management reinvested that money back into the business and the stock price soared as a result.

Now as investors view the financial landscape in 2010, a cash dividend is becoming almost a requirement. Investors want to invest their money in a company that will not only grow, but will also return a portion of their profits back to their shareholders. As the firm’s revenue grows, so will the stock price and just as importantly so will their dividend payments.

Gone are the days when investors are simply looking throw money at the latest growth story and hope the stock price doubles. Investors are now looking for more realistic returns and they are now accepting the fact that dividends will account for a significant portion of their total returns.

As companies recognize the increasing trend towards dividend investing, we are likely to see more companies initiate dividend payments. And those that currently offer dividends will seek to increase their dividends. It will become increasingly unpopular to continue to reinvest your earnings back into the company without providing a dividend payment that returns a portion of those earnings back to your investors.

Currently, 29 out of the 30 stocks in the Dow Jones industrial index offer a dividend payment of some type. However, it’s only a matter of time before the one holdout, Cisco Systems (CSCO: 20.35 -1.26%), begins offering a dividend. They can certainly afford to with $35 billion in cash sitting on their balance sheet.

Strong companies that offer solid dividend yields like Pfizer (PFE: 16.8499 +0.48%), McDonald’s (MCD: 74.68 +0.42%), and Coca Cola (KO: 58.17 -0.21%) will become the investments of choice. These blue-chip stocks may not double overnight, but they offer solid earnings growth and a commitment to pay dividends back to their shareholders.

Dividend stock investors should be optimistic over several announcements this week of companies restoring or increasing their dividend payments. eDividendStocks.com has highlighted six big dividend announcements that have taken place over the last 7 days.

Time Warner Cable
Time Warner Cable (TWC: 55.355 +0.79%) announced yesterday that it was initiating a quarterly dividend. The media company will pay $.40 cash per share each quarter, giving the stock a current yield of 3.6%.

The dividend will be payable on March 15, 2010 to stockholders of record as of the close of business on February 26, 2010.

Time Warner Cable Chief Executive Officer Glenn Britt said: “We believe that cash generating businesses like ours should return capital to shareholders. This regular dividend demonstrates our confidence in our business – in our strategy, our operational discipline and the free cash flows we expect to generate. As a starting point, our current dividend delivers a significant yield, yet it also provides us the flexibility to invest in organic growth as well as consider strategic acquisitions and additional means of returning capital to shareholders over time.”

Tellabs
Tellabs (TLAB: 7.195 -0.07%) announced on January 26th that that telecom firm will initiate a quarterly dividend of $.02 per share. While the dividend yield is still modest at 1.2% it reflects a shift in management strategy to start distributing some of their cash back to shareholders.

The cash dividend is payable on February 26, 2010 to shareholders of record as of the close of business on February 12, 2010.

Rob Pullen, Tellabs president and chief executive officer said, “to return capital to shareholders, today we’re announcing the company’s first cash dividend. It’s based on our confidence that Tellabs will continue to generate ample cash from operations to invest in the growth of our business, repurchase shares and pay dividends. We are helping customers succeed by preparing their packet and optical networks for growth markets such as the mobile Internet.”

Family Dollar Stores
Late last week, Family Dollar Stores (FDO: 42.82 +1.01%) announced that they will increase their quarterly dividend by 14.8%. FDO will now distribute $.155 per share in cash each quarter giving the discount retailer a 2% dividend yield.

The cash dividend is payable on April 15, 2010 to shareholders of record as of the close of business on March 15, 2010.

The dollar store operator has seen their business thrive in the recent economic downturn as consumers flocked to lower-priced outlets. The company has a long history of distributing cash back to their investors and this will mark the 34th consecutive year that the company has increased their dividend.

“Increasing our dividend for the 34th consecutive year reflects our strong financial position and our confidence in the long-term growth opportunity for Family Dollar,” said Howard R. Levine, Chairman and Chief Executive Officer.

Washington Post
Newspapers stocks have been battered over the last couple years as declining subscriptions as vanishing advertising revenue has depleted their business. Many of these firms have eliminated (McClatchy (MNI: 2.853 +1.17%)) or greatly reduced (Gannet (GCI: 13.27 +0.38%)) their dividends. However, the Washington Post Company (WPO: 377.34 +0.59%) announced last Thursday that they will increase their annual dividend rate, from $8.60 to $9.00 per share.

The dividend for the first quarter of 2010, will be payable on February 5, 2010, to shareholders of record on January 27, 2010.

Tiffany & Co.
High-end retailer, Tiffany & Co. (TIF: 42.32 +0.40%) also is increasing their quarterly dividend. The company announced last Thursday that they will increase their dividend payment by 18% beginning in April.

The company will now pay out $.20 per share each quarter, giving the stock a current yield of 2%.

Michael J. Kowalski, chairman and chief executive officer, said “Last week, we were pleased to report a better-than-expected 17% increase in Holiday sales and we raised our outlook for 2009 earnings. Both of these actions today reflect Tiffany’s strong balance sheet liquidity, as well as the Board’s confidence in our long-term ability to generate solid growth in earnings and cash flow.”

Carnival
Finally, cruise operator Carnival (CCL: 35.21 +0.09%) that they will resume paying a quarterly dividend. The firm had previously suspended their dividend payment last March.

The dividend will be payable on March 12, 2010 to shareholders of record as of the close of business on February 19, 2010.

The company will now offer a quarterly dividend of $.10 per share giving Carnival a current dividend yield of 1.2%.

“Resuming the quarterly dividend demonstrates our confidence in the earnings power of our global cruise brands despite the current economic environment. In addition, there has been a notable improvement in our access to the capital markets since the suspension was announced at the height of the financial crisis. Initiating the dividend at this level allows us to begin to return cash to shareholders at the peak of our capital expenditure program in 2010 and still maintain our strong balance sheet and solid investment grade credit rating. We are committed to returning cash to shareholders and expect to grow the dividend as our capital investment program slows beyond 2010 leading to significant free cash flow,” said Micky Arison, Carnival Corporation & plc chairman and CEO.

Of course we are still seeing some stocks, like Valero Energy (VLO: 17.045 +1.28%), reduce their dividends. However, dividend investors should be optimistic as we enter 2010 as we anticipate seeing dividends become more of a focus for companies as the economy continues to improve.

However, it appears that the Obama administration is beginning to recognize that their healthcare reform plan is too aggressive. Already there are indications coming out of the White House that there is willingness to scale back their healthcare initiatives in the face of strong popular resistance and worries about the overwhelming costs of public healthcare. 

This positive news has lifted healthcare stocks recently, with the healthcare sector of the S&P 500 gaining 5.3% since June 30th. However, the big move in healthcare stocks appears to still be ahead of us and we have identified five stocks that should be compelling to investors. 

Abbott Laboratories (ABT: 51.27 +0.35%)
Despite strong growth prospects and a decent dividend yield, this healthcare stock is currently trading near its 52-week low. 

2010 Revenue Growth: 7.7%
P/E (ttm): 13.3
Dividend Yield: 3.6% 

Gilead Sciences (GILD: 34.04 -0.03%)
This high-growth healthcare stock has seen its stock price rise 12 consecutive years.

2010 Revenue Growth: 14.9%
P/E (ttm): 18.7
Dividend Yield: N/A

Medtronic (MDT: 33.12 +1.25%)
Wall Street’s consensus estimates appear to be too low for this healthcare stock which could provide an opportunity for investors to capitalize on an upside surprise.

2010 Revenue Growth: 5.5%
P/E (ttm): 19.0
Dividend Yield: 2.2%

Eli Lilly (LLY: 35.38 +0.60%)
Two words…dividend yield. The stock offers dividend investors a whopping 6.0% yield.

2010 Revenue Growth: 6.3%
P/E (ttm): N/A
Dividend Yield: 6.0%

Celgene (CELG: 54.76 +1.61%)
Another high-growth healthcare stock that could deliver a 40% return to investors if it returns to its 52-week high.

2010 Revenue Growth: 20.4%
P/E (ttm): 84.3
Dividend Yield: N/A