As we enter the holiday season, we can celebrate the benefits provided by companies with lengthy streaks of annual dividend increases, a feature that enhances the compounding achieved by using dividend reinvestment plans (DRIPs) and dollar-cost averaging. Currently, there are more than 300 companies that have raised their dividends for at least five straight years and that offer company-sponsored DRIPs. Owning such companies magnifies returns by using reinvested dividends that are steadily rising to generate dividends of their own.
Among the companies that have recently declared a dividend increase are Arrow Financial (AROW) (22 years, Ex-Div. 12/1/15), Dow Chemical (DOW) (6 years, Ex-Div. 12/29/15), McDonald’s Corp. (MCD) (40 years, Ex-Div. 11/27/15), UMB Financial (UMBF) (24 years, Ex-Div. 12/4/15) and VF Corp. (VFC) (43 years, Ex-Div. 12/4/15). Buying such stocks just before the ex-dividend date gets the “compounding machine” running as soon as possible, so keeping an eye on the previous year’s increase date provides a distinct advantage over other investors.
Source: Forbes
Related Articles:
- 3 Styles Of Successful Dividend Investing
- Why Dividend Growth Stocks Are Evil
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
If you're looking for income, turning to your investment portfolio is a natural choice. Lately, that's been a tough assignment, beca...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
All seven equities on this list have dividend yields above 13%, but the highest one yields nearly 27%! In addition, each equity has a positi...
-
Dividend-payng semiconductor stocks to buy during a computer chip shortage for electric vehicles (EV), smartphones and other technology prod...
-
Investors in retirement may desire additional income. Those who don’t have a pension are likely relying on Social Security, and their retire...
-
Dividend safety is especially important when stock prices are falling. Many companies cut their dividend payouts in 2020 during the coronavi...
-
Investing in dividend-paying stocks is a good way to generate fairly reliable income. However, that strategy doesn't necessarily mean yo...
-
Sometimes, stocks are a bargain because the company's prospects are being overlooked, and sometimes, it's just the result of a broad...
-
The four dividend-paying retail technology stocks to buy towered over the rest at a BoA Global Research Consumer & Retail Technology C...
-
Chasing growth is usually the right move for younger investors, but it can be a risky strategy for retirees. Generally speaking, retirees sh...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.