Dividend Growth Investor: Nine Dividend Growth Stocks Rewarding Shareholders With a Raise
Market selloffs can be a challenging time. Even great companies can get sold off with speculative names. That’s why investors should look for strategies that stand the test of time, and stick with them.
One such strategy is to invest in dividend-paying companies with a history of growing that payout over time. And to simply buy and hold them as long as they can continue growing their payout.
While it may seem like there are slim pickings in today’s markets, a number of companies are still performing well. And they’re raising their dividend payout to shareholders as a result.
The Dividend Growth Investor blog looks at companies that have a history of raising their dividend annually for at least 10 years running. That’s long enough to cover multiple economic cycles and conditions.
Today, a select number of companies are raising their payouts. Some are as small as a 4 percent increase, with one raising its dividend by 25 percent.
Besides the growth of the payout itself, investors should note the company’s earnings. And their payout ratio, which is the percentage of the company’s earnings going into the dividend. And on top of that, overall valuation for shares plays a role.
While the share price of any stock can go down in the short-term, a dividend growth company backed by rising earnings will tend to rise over time. That makes for a sound strategy in today’s markets.
To view the latest list of companies that just raised their dividends, click here.