Dividend Growth Investor: Twenty Dividend Growth Stocks Raising Dividends Last Week
Whether markets go up, down, or sideways, stocks are still an ownership stake in a business. Understanding that business is critical to long-term success.
A well-run business will be able to generate excess returns. Those returns can be reinvested in the business, or returned to shareholders. A cash dividend to shareholders indicates that management is aligned with the owners, who expect a return on their capital.
That’s why many companies pay dividends and will work to grow them over time out of increased earnings. In the past week, a full 60 companies have raised their dividends. Within that group, one third, or 20, have a track record of 10 years of consecutive increases.
One recent dividend increase came from The Sherwin-Williams Company (SHW). The paint producer and seller has increased its payout by 11.3%, and just raised its payout for the 47th consecutive year.
While the current yield is low at 0.9%, increased payouts over time will likely mean an increased share price too.
Retailer Walmart (WMT) also increased its dividend recently, for the 52nd straight year. The payout increased by 13%. Currently, Walmart pays a 1% dividend, and increased payouts over time will increase an investor’s yield.
Overall, dividend growth companies offer a tremendous advantage for long-term investors. So, as investors look for a potential market pullback, it may be an ideal time to create a list of dividend growth stocks to buy.
For the full list of dividend growth stocks increasing their payout now, click here.