09-23-2015, 01:26 AM
Some companies deliberately pay high rate of dividends to entice the investors and once their purpose of raising capital is obtained, decrease the rates significantly or may defer the dividend one pretext or the other. Good companies with mature management pay dividends on a affordable range and they try to sustain if not improve it. Companies that raise their dividends do so because their earnings are increasing. You are going to want to look for out for strong companies with strong growth before you ever invest in it. When you buy for the dividends you buy for the long term so buy something that will be around for a while.