Dividend Growth Investor: Eight Dividend Growth Stocks Raising Distributions Last Week
Earnings season is in the rear-view mirror. But corporate boards of directors continue to approve policies such as dividend payments. Companies with growing cash flows can decide whether to fully reinvest in the business, make an acquisition, or pay shareholders.
Paying dividends demonstrates that a company is rewarding shareholders as the owners of a business. And that the company has stable cash flows. Companies that can consistently increase their dividends tend to be rewarded with higher share prices.
Recently, 27 companies have announced dividend increases. Of those companies, eight of them have consistently raised dividends annually for at least a decade.
That’s a strong sign of a mature business that can continue to reward shareholders from increased growth.
For instance, JPMorgan Bank (JPM) has existed in some form or another for over a century. The bank just raised its quarterly dividend payout by 12%, for the 15th consecutive year.
Yes, the current yield of 2.3% is only slightly higher than the dividend yield of the overall market. But a rapid increase in that payout could reward long-term investors.
Another recent dividend increase comes from wireless technology company Qualcomm (QCOM). Qualcomm raised its dividend by 4.7%, and currently pays a 2.3% yield. More importantly, Qualcomm just raised their payout for the 23rd consecutive year.