Stocks in Action -DOLLAR TREE INC (NASDAQ:DLTR), SAREPTA THERAPEUTICS INC (NASDAQ:SRPT), RIO TINTO PLC (NYSE:RIO), SHIP FINANCE INTERNATIONAL LTD (NYSE:SFL), ANALOG DEVICES INC (NASDAQ:ADI)
Dividend growth investing is a strategy that focuses on companies which regularly raise dividends. The strategy focuses on growth in dividends over a longer period of time that usually exceeds ten years. The typical dividend growth stock does not yield a lot today, but can generate very high yields on cost, that will definitely trump even some of the highest yielding stocks today. As a result, dividend growth investors focus on the catalysts that can generate a higher net income for the corporations whose stock they are purchasing. Companies can earn more by selling more, increasing prices, streamlining operations, expanding in new markets, selling new products or acquiring and merging with other companies. Mergers and acquisitions can only lead to higher earnings per share if they result in synergies. We want growth in earnings per share after all, not just a growth in overall net income.
The important tool that makes dividend growth investing is growth in earnings per share. Growth in earnings per share enables companies to increase dividends over time in a sustainable matter. A company that grows dividends for a period of time without corresponding earnings growth will eventually run out of room to boost distributions.
Here are companies that have increased their dividend payouts for several consecutive years.
DOLLAR TREE has been paying dividends since N/A and has raised their dividend for N/A consecutive years. It has a dividend yield of N/A and a 5 year dividend growth rate of N/A. Their payout ratio is N/A.
SAREPTA THERAPEUTICS first paid dividend in N/A and has increased their dividend for N/A straight years. They have a dividend yield of N/A and a 5 year dividend growth rate of N/A.
RIO TINTO has been paying dividends since 1997 and has increased their dividend for 0 years in a row. Their dividend yield is 4.10% and their 5 year dividend growth rate is 4.70%.
SHIP FINANCE INTERNATIONAL started paying dividend in 2004 and has lifted their dividend for 3 years. Their dividend yield is 13.80% and their 5 year dividend growth rate is 11.00%.
ANALOG DEVICES announced dividend for the first time in 2003 and has increased their dividend every year for the last 22 years. Their dividend yield is 2.20% and their 5 year dividend growth rate is 2.50%.