As a passive income investor, one of the main objective is to look at dividend growth stock that can give us passive return that well compensates our need. Some may be comfortable at 4% yield while others may require 7% yield. But all in all, a company that can increase their dividends over time will be one that investors seek for and it can help us achieve our goal at a faster rate.

Dividend increases usually mean that the company are doing well and they are returning excess earnings to shareholders in the form of dividends. They usually play a huge part in the investor's cash flow for years to come.

Consider Vicom for example, the company's earnings have been growing steadily over the years and so does its dividends. They are comfortable doing this not only because earnings have increased but also because their payout is relatively low compared (Read more...)