According to theoretical dividend-signalling models stock prices change because changes in dividend policy alter investors’ information sets. However, evidence on the signalling role of dividends is mixed. A firm will signal with dividends if the supply of cash in the firm is less than the sum of the owner cash needs and the funds needed for the firm’s investment. This paper intents to extend this research area to investigate the differences of return and profitability between dividend increasing firms accompany with seasoned equity offerings and without seasoned equity issue firms. Kale et al.(2012) find that increase or initial dividends are often accompanied by the need for companies to issue new shares to raise funds. This paper will expand this research. The purpose of increasing dividend is to raise the price so that the company can raise more funds when it carry SEO. If the stock price does not rise, it still increases capital, indicating that the company has an urgent cash demand and may have better investment opportunity.