Shares of Time Warner Cable (NYSE: TWC) finished the week sharply higher, gaining more than 8% even as the broader market slumped.

The stock got a boost from a bullish piece in Barron's, which cited Sanford C. Bernstein analyst Craig Moffett as saying the cable provider is well positioned to expand in the current environment due to its presence in lucrative major markets like Los Angeles and New York.

Those should be positive catalysts for Time Warner Cable, but we previously talked about the stock as a dividend play and it appears that speculation was warranted.

Moffett said Time Warner Cable, which currently does not pay a dividend, may instate a $1.50 a share payout early this year.

That would be good for a 3.5% yield based on where the stock currently trades. Moffett also boosted his price target on the stock to $60 from $55 which closed at $46.04 on Friday.

Moffett also noted that Time Warner Cable should have $9 per share for dividends and share buybacks in 2011 and beyond. A buyback announcement is likely to accompany any positive dividend news, the analyst added.