Dividend Growth Investor: Five Companies Rewarding Shareholders With Raises
Corporate America has continued to pay out some of its earnings in the form of dividends in the current market. Unlike the Covid crisis, high inflation and rising interest rates haven’t stopped dividend payers as much as the uncertainty of a pandemic.
That trend remains likely to continue. Companies continue to increase their dividend payouts, with a few reporting annual increases just this month.
Narrowing down the list to companies that have grown their dividends for over a decade, 5 companies have reported increases this month.
Many are financial companies. That’s a surprising move, given lower merger and acquisition activity on the stock market. Plus, banks have been hit by rising interest rates, which have raised capital costs and lowered loan demand.
Nevertheless, investors looking for growing cash payouts can buy a number of companies now.
One such play is CBOE Global Markets (CBOE). The company operates an potions exchange. It’s now raised its dividend for 12 year in a row, and has an annualized growth rate of 15.1 percent. While the current yield of 1.55 percent may not sound like much, dividend growth over time can fuel higher payouts and drive share prices higher too.
Another financial company raising rates right now is American Financial Group (AFG). The insurance company has raised its payout by 12.5 percent. This is the 17th annual increase the insurer has made to its dividend. The current yield is 1.7 percent.
To read the full list of companies raising their dividends now, click here.