Two bullish reports see stocks and dividends rising in 2010

Goldman Sachs (GS) strategists predict the S&P 500 rally will continue in 2010 with a further increase of 13%, hitting a top of 1,250. S&P analysts also see better times coming: They predict that total dividend payouts from S&P 500 companies will rise by at least 6.1% and in the most optimistic scenario could go up by as much as 8.9%.

Both predictions will be welcome to those who missed the 63% rally in the S&P 500 since March 9 because at least there would still be a wave to catch. Most of the rally was spurred by about $12 trillion in spending by governments worldwide. And as interest rates remain low and corporate revenue grows, more investors are turning back to stocks.