Perhaps the best of all of the "little happy moments" is when one of your dividend growth stocks delivers its annual dividend raise. In one stroke, it adds more money to your annual income and validates the inclusion of that stock in your DG portfolio.
Today, Walgreens (WAG) announced it is raising its quarterly dividend from 27.5 cents to 31.5 cents. The headlines accurately described this as a 14.5 percent increase in the quarterly dividend -- not too bad. The way I track it, however, WAG paid out an even $1.00 in dividends in 2012, and with this raise, will pay out $1.18 in 2013. By my math, that is an even healthier 18.0 percent increase year over year.
This makes 2013 WAG's 38th consecutive year of increasing dividends. While 18 percent is actually lower than its 5-year average dividend growth rate, which is comfortably north of 20 percent, I'm not at all concerned. WAG's earnings projections are solid and the payout ratio is still well under 50 percent.
Go WAG!
Today, Walgreens (WAG) announced it is raising its quarterly dividend from 27.5 cents to 31.5 cents. The headlines accurately described this as a 14.5 percent increase in the quarterly dividend -- not too bad. The way I track it, however, WAG paid out an even $1.00 in dividends in 2012, and with this raise, will pay out $1.18 in 2013. By my math, that is an even healthier 18.0 percent increase year over year.
This makes 2013 WAG's 38th consecutive year of increasing dividends. While 18 percent is actually lower than its 5-year average dividend growth rate, which is comfortably north of 20 percent, I'm not at all concerned. WAG's earnings projections are solid and the payout ratio is still well under 50 percent.
Go WAG!