Income investing

Dividend Growth Investor: Five Dividend Growth Stocks Raising Dividends Last Week

Although market uncertainty has been on the rise, cash dividends to shareholders represent a form of certainty. Once paid out, they can’t be retracted. And cash payments show that a company has the money to make the payment.

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  • That money can only come from a few sources, such as earnings and excess cash flow. So over time, companies that pay a growing dividend take on a greater importance to investors. Even in trying times, dividend payers continue to up their payouts.

    Recently, American Tower (AMT) raised its payout. AMT is a leading communications real estate investment trust that owns and operates cell towers.

    This is a steady, if unexciting business. But it allows for steady cash payments that can increase over time. That’s thanks to escalation clauses in contracts for the use of cell towers.

    AMT recently raised its payout by nearly 5%, for the 14th consecutive year. AMT now pays a 3.2% dividend yield. Today’s buyers can likely see their payouts continue to grow.

    Another dividend increase came from General Dynamics (GD). The aerospace and defense contractor has raised its payout for 28 consecutive years. The recent payment was a 5.6% increase. Shares currently pay a yield of 2.2%.

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  • Over time, slow and steady increases in income can turn dividend growth stocks into a powerhouse for your portfolio.

     

    Click here to see the full list of dividend growth companies now.