Bottom-Fishing For Companies Growing Their Dividends

Dividend growth matters. This is especially so when one considers that the fundamental value of a stock is inherently based upon the eventual participation in the growing wealth of the underlying equity. For companies that have dedicated themselves to the distribution of such wealth, the ability to sustain and eventually grow their yields often becomes the most critical indicator of financial well-being. Symbols of American corporate strength, like Procter & Gamble (PG) and International Business Machines (IBM), have managed to grow their dividends annually for decades. This was even true throughout recent Great Recession, which cut deep into even the most secure of pockets. Even General Electric (GE), which once prided itself as a consistent dividend grower, managed to take a hit during this time period, as witnessed in the following graphic: Yet for investors who enjoy bottom fishing, finding companies that that are growing their dividends is a good... Read more