Dividends form the core investment strategy for income-seeking investors.
While many companies do pay regular dividends, these payouts may fluctuate over the years depending on both the state of the economy and financial performance of the underlying business.
Some companies may fall by the wayside when their business is threatened by other competitors, and cut their dividends in response to falling profits and cash flows.
Red flags may also emerge for businesses that are experiencing prolonged stress and structural changes in the industry they operate in.
Truth be told, it can be tough to find companies that consistently maintain or grow their dividends.
Such dividend champions are rare, but when found, they can allow you to compound your wealth over the long-term.
If you want to grow your dividends, here are three things you should watch out for.