Includes: APD • GIS • IBOC • O • RTN • WPC • XLNX
I report on dividend increases for stocks in my watch list to identify candidates for further analysis and for possible inclusion in DivGro, my portfolio of dividend growth stocks. Companies pay increasing dividends if they are confident about future earnings growth potential.
As a dividend growth investor, I'm interested in companies that not only pay dividends, but those that pay growing dividends. The dividend growth rate is important. If the annualized dividend growth rate fails to match (or exceed) the rate of inflation, your investment would effectively shrink. I find it interesting to consider the percentage increase of each dividend increase. It tells me a lot about a company's commitment and ability to reward shareholders.
In the past two weeks, 7 of the companies on my watch list announced dividend increases. Increases vary from less than 1% to over 10%. Please read this Seeking Alpha article for details.