With dividend growth investing, the goal is identify a company that grows earnings and distributions, and then purchase that company, without overpaying dearly for its prospects. A rising stream of dividend income is just one of the outcomes of a successful business for further research. Investing in dividend growth stocks is a long-term endeavor, which benefits only those who are willing to patiently sit and compound their wealth and income for decades.
One way to monitor progress is by evaluating how earnings and dividends are growing once per year. If a company’s management is growing dividends, this shows their bullishness on the company’s intermediate term business prospects.
Over the past week, there were several companies with established track records of annual dividend increases, which continued their streak of annual dividend increases. The companies include: [more]
S&P 500® Dividend Aristocrats measure the performance S&P 500 companies that have increased dividends every year for the last 25 consecutive years. The Index treats each constituent as a distinct investment opportunity without regard to its size by equally weighting each company.
There are 50 dividend aristocrats today, with an average yield of 2.50%. Tomorrow, I would share a list of the 21 dividend aristocrats I would consider for further research if I were just starting out today. [more]
Unilever PLC (UL) operates in the fast-moving consumer goods market in the Africa, Americas, Asia Pacific, Europe, and Middle East. The company operates through Personal Care, Foods, Refreshment, and Home Care segments.
Unilever increased its quarterly dividend by 6% to 32.01 eurocents/share. This marked the 21st consecutive annual dividend increase for this international dividend achiever. Between 2005 and 2015, Unilever has managed to boost annual dividends from 66 eurocents/share to 1.19 Euro/share. [more]
ConocoPhillips (COP) just announced that it is cutting its quarterly dividend from 74 to 25 cents/share. This comes after management constantly reiterated that the dividend is a priority. Unfortunately, when a company is selling a commodity whose price can fluctuate greatly, and you have very high capital expenditure costs, they cannot really do much other than cut the dividend to conserve resources. This environment is tough on ConocoPhillips, because they are a pure exploration and production play, and have no downstream operations ( refining and marketing) like the big integrated companies such as Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX). If ConocoPhillips still had Phillips 66 (NYSE:PSX), it would have been able to weather the storm in oil prices a little easier. It is also unfortunate that I was right to question the sustainability of the dividend payment from ConocoPhillips in my earlier assessments from 2015. [more]
without a clear plan or strategy to accomplish specific goals. This investing sin causes investors to chase unrealistic returns, and to abandon one strategy for the next when things get tough. A common trait of succesful investors is identifying their investment objectives, and then devising a plan to accomplish those. The important part after that is patiently sticking to your plan even when things get tough. It is unrealistic to assume that any real strategy can deliver results that are always better than everyone elses, and can also generate consistent profits all the time. Investors who fail to understand this, end up abandoning strategies at their temporarily weak point, and then wasting precious years that could have caused the capital to compound and accomplish their goals.I believe that in order to be successful in investing, one needs to select a strategy, and stick to it for decades. This allows the power of compounding to do its magic. If you switch investing methods/styles every few years, because you chase what is hot, you are not going to let compounding do the heavy lifting for you. In addition, if you have high portfolio turnover, your compounding will be negatively affected, because you will be paying more in commissions, taxes and fees.
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