Stocks Trending Alert -AMERICAN EXPRESS CO. (NYSE:AXP), AGNC INVESTMENT CORP (NASDAQ:AGNC), BAIDU, INC. (NASDAQ:BIDU), ARCHER DANIELS MIDLAND CO. (NYSE:ADM), TIME INC (NYSE:TIME)
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.
AMERICAN EXPRESS has been paying dividends since 1870 and has raised their dividend for 5 consecutive years. It has a dividend yield of 1.60% and a 5 year dividend growth rate of 1.40%. Their payout ratio is 23.00%.
AGNC INVESTMENT paid dividend in 2008 and has increased their dividend for 0 straight years. They have a dividend yield of 10.70% and a 5 year dividend growth rate of 14%.
BAIDU has been paying dividends since N/A and has increased their dividend for N/A years in a row. Their dividend yield is N/A and their 5 year dividend growth rate is N/A.
ARCHER DANIELS MIDLAND started paying dividend in 1927 and has lifted their dividend for 19 years. Their dividend yield is 2.90% and their 5 year dividend growth rate is 2.30%.
TIME announced dividend for the first time in 2014 and has increased their dividend every year for the last 0 years. Their dividend yield is 1.30% and their 5 year dividend growth rate is 0.00%.