I review the list of dividend increases each week. This is part of my process to review existing holdings and identify companies for further review. This is also a good exercise to review fundamental trends in earnings, revenues, dividends, payout ratios etc, and look at valuations. Quite often, the dividend increase announcement comes along with an annual or quarterly earnings release. Other times, it is a reminder to review the latest financial figures.
Regular readers know that I usually focus on the companies with a ten year track record of annual dividend increases for this review. I also like reviewing the tone of the press releases, and try to evaluate how committed management is to prudent capital allocation that allows companies to raise dividends over time. Over the past week, there were several companies that announced dividend raises…
This article originally appeared at Dividend Growth Investor.