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)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.