There is a school of investing thought that recommends focusing on stocks that grow dividends at a high rate year after year. It is often used by retirees or investors planning for retirement. It is one that I also follow. But the best dividend growth stocks would also support wealth accumulation even when the dividend income is being withdrawn such as during an investor's retirement. Stocks that grow their prices as well as dividends over time provide increasing wealth and income.
The price vs. dividend increase trends will be reviewed for the following 5 stocks: NextEra Energy (NYSE:NEE), Omega Healthcare Investors (NYSE:OHI), Colgate-Palmolive (NYSE:CL), Procter & Gamble (NYSE:PG) and Waste Management (NYSE:WM). For these 5 stocks the average dividend yield, ADY, has been 3.62% and the average dividend income growth rate, ADIGR, has been 9.7%, so that the sum, the average total income growth rate, ATIGR, has been 13.31% over the years 2005 to 2013. Dividend yield is defined by the price at the last trading day of the year and the dividend for the year. This date is somewhat arbitrary, but as investors often compare gains on an annual basis, it is considered an appropriate reference.
Source: Seeking Alpha
Related Articles:
- Don't Touch These 5 Dividend Stocks!
- 7 Dividend Stocks Headed In The Right Direction
- Who Owns The Top Dividend Stocks?
- 6 Big-Name Dividend Stocks Crushing The S&P 500
- 3 Higher-Quality, High-Yield Dividend Stocks
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
April has time and again proved to be favorable for stocks. But this time around, April has arrived during midterm election, which usually s...
0 comments
Post a Comment
Post a Comment