Dividend Growth Investor: Six Dividend Growth Stocks Rewarding Shareholders With Raises
Markets have been touching all-time highs. Some see valuations as stretched. Particularly with tech stocks, which have soared over the past two years. Investors increasingly look for short-term wins.
But finding long-term winners can be just as rewarding. And it’s a lot less work to replicate over a shorter timeframe. That’s where dividend growth stocks come into play. These companies provide current growth, but also the promise of future growth.
Companies that can grow their earnings over time have a variety of options with that money. They can expand the business. Or they can buy back shares. Or they can pay a dividend. They usually do a mix of all of those.
Some companies look to pay a growing dividend to reward their bosses, the shareholders.
Among recent dividend increases, Realty Income (O), has been a long-term grower. They’ve raised their annual dividends several times each year since going public in 1994.
They currently pay a 3.6% yield, and raised their payout by 2.9%. The yield has been higher in the past, but shares have performed well ahead of declining interest rates.
Another recent increase has been from U.S. Bancorp (USB). The bank raised its dividend by 2%, and is now in the 14th year of consecutive dividend increases. Shares currently pay a hefty 4.5% dividend.
To see the full list of companies increasing their dividends now, click here.