Dividend Growers With Room To Run

[Originally published 8/5/2014] Augusts filter attempts to hone in on companies that have a long-term history of raising dividends and the financial flexibility to continue raising them in the future. While we like dividend companies at 5i Research, we like dividend growers even more. Consistent growth in distributions helps to fight off the effects that inflation can have on returns and income while rewarding shareholders who are willing to own a stock for the longer term. It generally also shows strong management and an understanding of business requirements and outlook, compared to a high yielding name that may struggle to make payments or put operations at risk in the name of a dividend. The filter returned 18 companies trading on Canadian exchanges. The metrics used were: Compound annual growth rate for dividends paid on shares that is greater than 10% Dividend payout ratio that is less than or equal to... Read more