Dividend Growth Investor: 8 Dividend Growth Stocks Rewarding Investors With a Raise
Whether the market moves up, down, or sideways, dividends can greatly improve total returns. Reinvested dividends can make up more than half of an investor’s returns in the stock market over an investment lifetime.
That’s why owning dividend stocks should be a core strategy for any investor. And investing in companies that grow their dividends over time can be even more rewarding. Fortunately, the market has dozens of stocks raising their payouts right now.
For instance, Microchip Technology Incorporated (MCHP) develops and sells connected control solutions. That’s a steady business, and the company just raised its dividend for the 85th consecutive quarter.
With a payout of about 2.3 percent, that’s just slightly more than the average stock right now. But the company has managed to raise its payout by 9.9 percent annually over the last five years.
KLA Corporation (KLAC) provides management solutions for the electronics and semiconductor sectors.
They pay a lower dividend of 1.2 percent. However, they’ve been growing it faster, by about 16 percent annualized over the past 5 years.
Plus, earnings are up nearly 8-fold in the past 10 years.
With interest in the semiconductor industry growing, KLA is likely to continue raising its dividends well into the future. That gives investors both current and increasing income over time.
To see the other six companies that recently raised their dividends, click here.