Dividends4Life: Stocks With 10 Years of 10% Dividend Growth

Stocks With 10 Years of 10% Dividend Growth

Posted by D4L | Friday, April 01, 2011 | | 0 comments »

"If you're thinking about buying a bond right now, I want to refer you to a mental institution," says Ridgeland, S.C., money manager Tom Cameron. His point: America's debt is so large that inflation is inevitable, so investors should shun fixed bond payments and favor rising dividends. Cameron, four years senior to Warren Buffett with more than a half-century of money management experience, oversees a toddler of a portfolio in The Rising Dividend Growth Fund (ICRDX).

The fund's stock-picking rules start with a simple "10-10 approach": Find companies that have raised their dividend payments by a least 10% per year for at least 10 years. Among those, look for firms with strong finances and products or services that sell well even in a down economy. Cameron especially likes companies that increased their dividend faster this year than they did last year. "We think management at those companies is saying something important about future financial performance," he says.

Source: Smart Money

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