The Importance Of Consecutive Dividend Increases in Stock Selection
by | Posted 2.8.2014 | Post Comment (No Comments)

Dividend growth investors typically focus on a minimum record of dividend increases which is anywhere between 5 and 25 years. The purpose of focusing on companies with an established record of consistent dividend raises is to identify corporate boards which are eager and willing to reward shareholders with higher distributions. I also believe that a long streak of dividend increases is one of the indicators of a business with strong underlying fundamentals. Regular dividend increases which are supported by gradual increases in profits over time are essential for providing retirees with an inflation adjusted stream of income during their non-working years, which does not rely on reinvestment.

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