National-Oilwell Varco, Inc. (NOV), Southwest Airlines Co. (LUV): 5 Stocks That Are Too Stingy With Their Dividends

Halliburton Company (NYSE:HAL), 12.6% payout ratio
Among these companies, Halliburton can be excused to a certain extent for failing to raise its dividend substantially. Ever since the Gulf oil spill, Halliburton has had to worry about liability, and some of those affected argued at the time that Halliburton and the other companies involved in the spill should suspend dividends entirely to prevent them from rewarding investors at potential claimants’ expense.

Yet even with a 39% dividend increase announced last month, Halliburton’s yield will only be 1.2%. Given the company’s huge success, especially from its highly lucrative offshore drilling segment, you should expect to see additional bigger dividend increases from the company in the not-too-distant future.

Citigroup Inc. (NYSE:C), 1.9% payout ratio
To be fair, Citigroup hasn’t had control of its dividend destiny for quite a while. Under the oversight of the Fed, Citigroup has been locked at $0.01 per share in quarterly dividends ever since the financial crisis, even as its earnings have rebounded exponentially.

Yet Citigroup put the stiff-arm on dividend investors, choosing not to seek permission for a payout increase despite its vast improvement. It’s easy to understand why new CEO Michael Corbat wants to be conservative in his first exchanges with the Fed, but long-suffering investors can’t be happy with the move.

Demand more dividends
Shareholders need to be vocal about the need for companies to share their wealth. Otherwise, the likelihood that corporate leaders will squander extra cash on ill-advised alternatives could end up costing you money.

The article 5 Stocks That Are Too Stingy With Their Dividends originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Halliburton, National Oilwell Varco, and Southwest Airlines. The Motley Fool owns shares of CF Industries, Citigroup, and National Oilwell Varco.

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