Companies that regularly increase dividends show confidence in the potential growth of future earnings.
One way to identify dividend growth stocks for further analysis is to monitor dividend increases.
In the past two weeks, 7 companies on my watch list declared dividend increases.
The quiet period for dividend increase announcements continues, so this time I'm covering a two week period!Of the seven stocks that announced dividend increases, two increased their dividends by double-digit percentages.
The top increase is from PNC Financial Services Group Inc (PNC) with a very impressive increase of 36.36%! The stock now yields 2.37% at $126.54 per share.
Unfortunately, I don't own any of the companies that were mentioned in the Seeking Alpha article. Still, the fact that companies continue to increase their dividends, sometimes by double digits, is one of the reasons why I love the dividend growth investment strategy.
ReplyDeleteThe ultimate goal is to benefit from dividends during retirement. With a strong dividend portfolio, I won't have to worry about selling my shares. Instead, I'll not just be receiving a steady and predictable income, but an ever increasing one as well.
Same here -- I don't own any of those companies either. But it is good to monitor dividend increase announcements because it helps me to learn about stocks I don't own, which could be candidates for further research.
DeleteDon't you just love the prospect of collecting an inflation-protected dividend income stream in retirement? I still have some ways to go, but this approach certainly makes the most sense to me!