Dividend Growth Investor: Three Dividend Growth Companies Increasing Dividends Last Week
Whether stocks rally or decline, they’re still fractions of a business. And over time, focusing on a company as a business can lead to massive returns. Most businesses mature and slow down after a hefty growth phase.
As that happens, cash flows shift from reinvesting in the business to rewarding the owners. That usually takes the form of dividend payments. A rare handful of companies have a history of increasing that payout over time.
The list narrows further for a ten-year period of raising payouts over time. But these companies tend to be great for long-term, patient investors. For those thinking about future cash needs decades down the line, dividend growth is optimal.
Recently, three companies raised their dividends. That includes utility firm Consolidated Edison (ED), which generates gas and electric power in the New York City area. They just raised dividends for the 51st consecutive year.
Over the past 10 years, Con Ed has raised its payouts by an average of 2.8%, about in-line with average inflation. Shares currently yield 3.5%, more than double the average dividend from the stock market index.
Another player is industrial and construction supplier Fastenal (FAST). They raised their dividend by 10.3%, and for the 26th consecutive year. Fastenal currently pays a 2.1% dividend.
Dividend growth companies may not be exciting short-term trades, but their long term track record is fantastic.
To see the third dividend growth play this week, click here.