Dividend growth investing is a popular model followed by the investing community to build assets.
Companies which not only pay dividends, but raise them year after year have been shown to perform better overall for investor returns. A big part of this involves capturing the details.
As part of my due diligence, I closely monitor all companies that raise dividends (or cut them) and this article shares the dividend amount changes announced by companies.
Note that only companies with a market cap of $2B+ are included, as the list of small/micro cap companies is too long to include here.
October dividend raises and can be found here...
When it comes to building long-term wealth, there is no better means than the stock market.
Even during times of massive social, economic, and geopolitical instability, blue-chip dividend stocks have shown an incredible ability to climb “the wall of worry.”
However, even better than dividend stocks in general are dividend growth stocks, which studies have found to outperform the broader market over time.
This is because companies that pay growing dividends, such as Dividend Aristocrats, need to be more careful and selective with their capital allocation, meaning maintain stronger balance sheets and only invest in the best growth opportunities.
Of course, finding great dividend growth stocks, and building a high-quality dividend portfolio isn’t always easy. You need to not just focus on the size of the current yield and potential payout growth potential but also make sure that a company’s earnings and cash flows can make the dividend reliable and secure.
The following is a look at nine fresh-faced dividend stocks that have only begun a regular payout sometime over the past five years:
My goal is to buy shares of companies that I love, reinvest the dividends, and in a few decades, retire without having to sell a share of stock because my dividend income is reasonable enough to support me and my family. Sound crazy? It's not.
Dividend growth is a key value creation tool that works well for investors who don't want a high return on investment but a solid. You don't have to fear great recessions because of the deep economic integration.
Buy and hold forever is easy to say but hard to implement because of the human psychology. Investors loose trust over time when the company don't grow or disappoints on the earnings in the mid-term. Let me tell you one thing: Only over a long time, the company has a high probability to create and unlock its potential value.
Each good wine need time to develop and dividend growth stocks also need time. That's why I believe that high-quality dividend growth stocks are essential for wealth building.
The 10 stocks listed below are a portion of my "forever" portfolio. I'm not recommending them to you. I paid much less for these stocks than what they sell for now and what you pay for a stock is the ultimate predictor of your investment returns. Still, you may find something of interest here, especially if you build your own portfolio of dividend stocks to hold forever. To that end, I've calculated the dividend growth rates for each of these stocks, as well as a fair value estimate.
These are the results...
The stock market offers opportunities every day, but healthcare is easily the sector benefiting most from the trend of aging demographics in the U.S. and throughout the developed world.
This helps explain how over the past decade, the Global Healthcare Sector has outperformed the benchmark S&P 500 by more than 20%.
Looking for cheap stocks that pay dividends? These healthcare leaders are riding the aging demographic trends to profit town and deserve your attention.
The first thing that comes to mind, when determining whether a stock is overvalued or not, is its price-to-earnings (P/E) multiple. We hereby shortlist healthcare stocks with forward P/E ratio trading below 15x. Standard criterion holds that, anything under 15x will be dirt cheap.
Because of the high market valuation, we can say today that high-quality dividend stocks with a P/E under 20 are cheap, compared to bond yields.
Attached you will get a list of the cheapest healthcare dividend stocks by forward P/E. I've excluded all stocks with a market capitalization under 2 billion. Each of the results has a forward P/E under 15 which corresponds with an earnings yield over 6.6%.
These are the 20 cheapest healthcare dividend stocks....
The health care sector includes a wide variety of companies operating in various industries, such as biotechnology, long-term care facilities, drug manufacturing, medical devices and equipment industries.
Due to an aging population in the United States, the availability of a wide spectrum of medical services to prolong life and increasing demand from baby boomers for medical services, the health care sector is poised to continue growing at an above-average rate compared to broad U.S. market returns.
From 2010 to 2015, various industries within the health care sector have generated average annual returns ranging between 17% for long-term care facilities to 34% for biotechnology companies, which is substantially above the average market return in the U.S.
Overall, the health care sector is poised to continue growing and generating excess returns due to ongoing innovation and strong patent protection. Also, due to stable cash flows and a solid pipeline of products, most health care companies can afford to pay out substantial amounts of their earnings to their shareholders, resulting in high dividend yields that average from 3 to 4% as of September 2015.
Looking for high-yielding dividend stocks from the healthcare sector? We've listed the top yielders without any restrictions. Here they are...
