Why dividend growth matters
At the beginning of the week, I released a massive guide on
Dividend Investing, detailing a step-by-step process on getting better acquainted with all things dividends.
In this article, I will be looking to identify 6 high-quality blue-chip dividend growth stocks that have consistently grown their dividends over the past decade.
These dividend growth stocks need to exhibit the few basic dividend growth characteristics to qualify:
- Past 5 years average dividend growth > 3%
- Past 3 years average dividend growth > 5%
- Past 1-year average dividend growth > 10%
- Dividend yield of at least 2%
- More than 10 years of consecutive dividend growth
- Market Cap > US$20bn
What we are identifying is not just a dividend growth stock, but one that has consistently increased its dividend growth rate over the past 5 years, with the latest dividend growth rate being double-digit.
Let me show you why such a dividend grower is the “preferred” stock over a “high yielding” dividend payer.
Let’s assume 2 scenarios....
