In investing, the only way to be absolutely certain that something will happen is to wait until it actually happens. But when it comes to companies with long histories of paying higher dividends each year, counting on them to do everything in their power to keep their dividend hike streaks alive is the next best thing to a sure thing.
Every year, Standard & Poor's announces its list of Dividend Aristocrats. In order to qualify, a company has to increase its annual dividend payments to shareholders every year for at least 25 years. For 2010, just 43 stocks made the list. Being a Dividend Aristocrat carries a lot of prestige, especially lately as many investors have started to appreciate stocks that provide consistent income to their shareholders. Demonstrating an ability to maintain ever-increasing payouts over the course of several business cycles shows that a company has the financial strength not just to thrive in bull markets but to survive in tough business environments. Now more than ever, in the aftermath of 2008's financial crisis, investors want assurance that the stocks they own are stable and won't bring them any surprises.
Source: Motley Fool
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