With all the other investment strategies out there, why should investors consider dividend or income investing? There are a multitude of reasons to follow a dividend growth strategy. These include: investment stability, security of cash, continuous feedback, potential higher returns, low maintenance, et. al. But for me the most important reason is the inflation hedge that a growing dividend will provide in my retirement years.
For a stock to be an effective inflation hedge it must raise its dividend each year in excess of the inflation rate. For a list of stocks with a long string of consecutive cash dividend increases, see this list.
Source: Dividends Value
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