I review the list of dividend increases as part of my monitoring process. This helps me review the story behind companies I already own. It also helps me review companies for potential inclusion into my watchlist.
A long track record of annual dividend increases is an indication of a quality company with a strong business model. Its strength could be due to a favorable environment, competitive position, unique product, patent or trademark, a strong brand, a loyal group of customers or a combination of the above.
I find it helpful to identify these businesses and place them on my list for further research.
During the past week, there were five companies with long histories of annual dividend increases, which also hiked distributions to shareholders.
This article originally appeared at Dividend Growth Investor.