10-20-2015, 12:40 AM
Dividends are payments made from companies to their owners. If you own stock in a company you are an owner of a part of that company and entitled to any profits that the companies management chooses to pay out. Sometimes management will choose to maintain some or all of their profits in order to grow the company. Other times, usually in bigger companies with growth, management will decide it is best to pay out a part of their profits to the company shareholders or owners.
Dividend growth investing includes looking for out companies that pay a dividend and who have a history of increasing those dividend payments every year. There are many organizations that have increased dividends yearly for 10, 20 even up to 50 years in a row. These organizations are growing their earnings and growing the quantity of those earnings that they pay out to their owners each year. Along with the increased earnings and the increased dividend payments, the value of the organization usually increases and will give you a nice capital gain. Dividend growth investors will search for out these organizations with the fact that these organizations will continue to be good investment strategies in the future.
If you want to be a dividend growth investor, look for organizations that constantly increase their dividends year after year. Determine the growth rate of these dividend increases to make sure that the dividends are growing at a rate quicker then inflation. This will mean that every year you will have more income to purchase goods and pay expenses then you did the previous year.
One of the main goals of dividend growth investors is to obtain enough shares of stock in different organizations so that they will be paid a large amount of dividend income. The objective is to get enough dividend income to be able to offset part or all of your expenses.
Dividend growth investing includes looking for out companies that pay a dividend and who have a history of increasing those dividend payments every year. There are many organizations that have increased dividends yearly for 10, 20 even up to 50 years in a row. These organizations are growing their earnings and growing the quantity of those earnings that they pay out to their owners each year. Along with the increased earnings and the increased dividend payments, the value of the organization usually increases and will give you a nice capital gain. Dividend growth investors will search for out these organizations with the fact that these organizations will continue to be good investment strategies in the future.
If you want to be a dividend growth investor, look for organizations that constantly increase their dividends year after year. Determine the growth rate of these dividend increases to make sure that the dividends are growing at a rate quicker then inflation. This will mean that every year you will have more income to purchase goods and pay expenses then you did the previous year.
One of the main goals of dividend growth investors is to obtain enough shares of stock in different organizations so that they will be paid a large amount of dividend income. The objective is to get enough dividend income to be able to offset part or all of your expenses.