Includes: BRO, EV, HCSG, IP, OHI, POL, THO
Summary
- Companies that regularly increase their dividends show confidence in the potential growth of future earnings.
- I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.
- In the past week, 7 companies on my watch list declared dividend increases, including 1 of the stocks I own.
To see the list of dividend growth stocks that announced dividend increases this week, please read this article at Seeking Alpha.The list includes 3 stocks with double-digit percentage increases, while one of my DivGro stocks also announced a dividend increase. In fact, this stock has increased its dividend every quarter since October 2012!
Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.
Hello, you seem to be doing great job with investing in dividend stocks. Did you try back testing your strategy for a period including 2 recessions? How are the results?
ReplyDeleteYou inspired me into starting with div investing, I do not have as much money as you have in your portfolio. If I have to start now say with 50-100K, what would you recommend doing? Would following your trades as is work with similar returns, or do I have to buy some equities in your portfolio in advance and then follow your steps? Thank You
Hi Anonymous --
DeleteI started Divgro in January 2013, long after the recession. So, no, I have not back tested my strategy.
I started with a relatively small amount, and added new capital monthly. I did not start with a very large amount. As a result, I've built up my portfolio progressively, looking to buy stocks below "fair value". Buying stocks in my portfolio won't produce similar returns, as many of the stocks I own now no longer are trading below fair value.
If I were to start right now (knowing what I've learned over nearly 4 years), I would be quite cautious. The markets are trading near all time highs. I would follow the same process as I have done, buying a few stocks (trading below fair value) here and there and build up over time.
Several DGI bloggers do stock analyses (me too) to estimate fair value. You could learn how to do it yourself, or just read blog posts from DGI bloggers. Ask lots of questions. This is a great community to be part of... everybody is very supportive. Only buy stocks after you've made sure they're trading below fair value and you've read up about the stocks. Make sure you understand what you're buying. Usually, there are pros and cons -- you should be able to live with the cons.
Feel free to ask more questions. All the best and happy investing!