Dividends4Life: One Way To Incent A Company To Raise Its Dividend

Arguments for dividend growth typically emphasize 1) strong balance sheets and 2) track records of dividend growth. However, no other report we've read points to this fascinating nugget that Parker unearthed: executive compensation trends. In short, it has become increasingly in the best interests of executives to boost dividend payouts thanks to the evolution of equity-based compensation.

From Parker: "It is important that fundamental analysts understand how the senior management teams of the companies they are analyzing are variably compensated, as those with restricted stock and not options are much more likely to increase dividends. The principle? People rarely intentionally damage their own net worth."

Source: Business Insider

Related Articles:
- The 2012 Dividend Achievers
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
- 2011 Dividend Increases Nearly Doubled, and 7 Dividend Stocks that Led the Way

Click here to have future posts delivered to you for free!

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.

~

Popular Posts Last 30 Days