Dividend Growth Investor: Five Dividend Growth Companies Increasing Distributions to Shareholders

As the market continues to rally this year, investors continue to remain bullish. One confirmation of that move is the fact that companies continue to increase their dividend payouts.

Unlike earnings, which can be subject to various accounting changes, a company needs cash on hand to make a dividend payment. And companies that can increase those payments over time, say for at least 10 consecutive years, tend to be fantastic long-term performers for investors.

Some of these companies play to long-term trends in the economy, such as the aging of America. As the average age increases, spending on healthcare-related services tends to rise.

That can be seen with the dividend boost by UnitedHealth Group Incorporated (UNH). The diversified healthcare company just hiked its quarterly dividend to $1.88 per share, an increase of about 14 percent.

While that’s a big jump, it’s actually a bit slower than their 10-year annualized rate of 23 percent dividend growth. Fortunately for investors, UNH has managed to increase its dividend for 14 years in a row.

While the current dividend yield is about 1.5 percent at current prices, continued increases by the low double-digits are likely to occur in the years ahead.

If the dividend yield stays about the same, that translates to a continued share price increase. That’s good news for investors in dividend growth stocks, who often see excellent long-term gains as well.

To view the full list of recent dividend growth stocks, click here.