Dividend Growth Investor: Eight Dividend Growth Companies Increasing Dividends Last Week
Typically, investors look forward. They want to invest in a company ahead of future growth. That’s where big gains can be made.
However, one metric looks backward, but also provides a clue to market-beating gains. That clue is a history of dividend growth. Companies that can grow a dividend payment over time are capable of delivering increasing cash flow. And that also tends to benefit the share price over time.
Fortunately, even in choppy markets, a handful of companies will routinely raise their dividends.
For instance, Altria Group (MO) just raised its dividend for the 54th consecutive year.
The cigarette manufacturer increased the payout by 4.3 percent, a bit better than the current rate of inflation. Over the past decade, it’s been a much more impressive 8.1 percent.
Shares currently trade under 9 times earnings, and the stock yields 9.1 percent. Returns have been solid for the company over time, even as the long-term fundamentals of the tobacco industry have slowed.
Another company increasing its dividend is First American Financial Corporation (FAF). They provide insurance services. They just raised their dividend for the 13th straight year. Over the past five years, the growth has averaged 7.4 percent.
While the current yield sounds low at 3.5 percent, dividend growth over time is paying off for shareholders.
For the full list of companies raising their dividends now, click here.
