Dividend Growth Investor: Two Recent Dividend Increases and Five Future Dividend Increases
Despite a rough week for markets, stocks are just one part of the investment puzzle. That’s because stocks are a fractional ownership of a business. And many businesses continue to hold up well.
Many companies start to reward their shareholders over time. That reflects less capital needed for growth, and a steady, if not increasing, flow of cash from operations. The reward can come in dividends or buybacks.
Dividends offer investors cash, which they can decide how to reinvest or spend. A handful of companies are capable of consistently growing year-over-year, sometimes for decades at a time.
Recently, two companies increased dividends for over a decade.
One of those companies is Bank OZK (OZK), providing traditional retail and commercial banking services out of Arkansas.
Bank OZK just raised its dividends for the 29th consecutive year. Over the past 10 years, dividends have increased at an average rate of 12.9%, far above the rate of inflation.
Amid the recent market fear, shares have slid by nearly 15% in the past month. However, Bank OZK trades at less than 7 times earnings. And it trades at 0.8 times its book value. That suggests that shares are at least at a 20% discount to its book of loans.
The current market fear has sent nearly every company down. Fortunately, investors can use tools like dividend growth to screen for long-term buys.
To see the other companies raising their dividend payouts now, click here.