I tend to focus my attention on companies that regularly increase dividends to shareholders.
A long history of annual dividend increases is often the result of a strong business, with strong competitive advantages, with high return on investment, which tends to gush rising tides of free cash flows.
However, that doesn’t mean that every dividend increase is treated the same or that you should not look under the hood to understand the drivers behind that dividend increase.
A history of dividend increases will put a company on my map for sure. However, I do additional work from there to determine if a company is worth researching and even potentially adding to my portfolio.
That works includes reviewing trends in…
This post originally appeared at Dividend Growth Investor.