QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Recent Dividend Increases

Below you will find a list of public companies, exchange traded funds (ETFs), and real-estate investment trusts (REITs) that have recently increased the amount of their dividend payments. Learn how to invest in stocks with increasing dividends.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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CompanyAnnouncement DateAmountPrevious AmountIncrease AmountYieldEx-DatePayable DateIndicator(s)
Seacoast Banking Co. of Florida stock logo
Seacoast Banking Co. of Florida
5/18/2023$0.18$0.175.88%3.17%6/14/20236/30/2023Positive News
Nasdaq, Inc. stock logo
5/18/2023$0.22$0.2010.00%1.58%6/15/20236/30/2023Analyst Upgrade
Chubb Limited stock logo
5/17/2023$0.86$0.833.61%1.73%7/7/2023Analyst Downgrade
Enel Chile S.A. stock logo
Enel Chile
5/17/2023$0.3076$0.01102,696.36%10.5%5/18/20235/18/2023Short Interest ↑
High Trading Volume
Northrop Grumman Co. stock logo
Northrop Grumman
5/16/2023$1.87$1.738.09%1.67%5/26/20236/14/2023Analyst Report
Analyst Revision
Vodafone Group Public Limited stock logo
Vodafone Group Public
MGE Energy, Inc. stock logo
MGE Energy
5/16/2023$0.4075$0.40700.12%2.13%5/31/20236/15/2023Analyst Report
News Coverage
Positive News
Western Asset Managed Municipals Fund Inc. stock logo
Western Asset Managed Municipals Fund
Banco Bradesco S.A. stock logo
Banco Bradesco
5/15/2023$0.0035$0.00343.24%5.1%6/2/20237/13/2023Short Interest ↑
News Coverage
Gap Up
Lennox International Inc. stock logo
Lennox International
5/15/2023$1.10$1.063.77%1.5%6/29/20237/14/2023Analyst Report
Short Interest ↑
Columbia Banking System, Inc. stock logo
Columbia Banking System
5/15/2023$0.36$0.3020.00%7.11%5/30/20236/15/2023Analyst Report
Analyst Revision
América Móvil, S.A.B. de C.V. stock logo
América Móvil
5/15/2023$0.3605$0.196483.60%1.5%11/9/202311/13/2023Analyst Upgrade
News Coverage
AGCO Co. stock logo
5/13/2023$5.00$4.5011.11%4.87%5/18/20236/20/2023Analyst Report
Short Interest ↓
Highland/iBoxx Senior Loan ETF stock logo
Highland/iBoxx Senior Loan ETF
Positive News
PennantPark Floating Rate Capital Ltd. stock logo
PennantPark Floating Rate Capital
Analyst Upgrade
Positive News
PennantPark Investment Co. stock logo
PennantPark Investment
5/12/2023$0.20$0.18508.11%14.1%6/14/20237/3/2023Analyst Report
Insider Buying
News Coverage
Positive News
Bunge Limited stock logo
5/12/2023$0.6625$0.62506.00%2.8%8/17/20239/1/2023Analyst Report
Marriott International, Inc. stock logo
Marriott International
5/12/2023$0.52$0.4030.00%1.19%5/25/20236/30/2023Options Volume
Betterware de México, S.A.P.I. de C.V. stock logo
Betterware de México, S.A.P.I. de C.V.
Orange S.A. stock logo
5/11/2023$0.3430$0.31429.18%6/1/20236/22/2023Analyst Report
Sun Life Financial Inc. stock logo
Sun Life Financial
5/11/2023$0.5540$0.54102.40%4.62%5/30/20236/30/2023Analyst Upgrade
Analyst Revision
Werner Enterprises, Inc. stock logo
Werner Enterprises
5/11/2023$0.14$0.137.69%1.23%6/30/20237/19/2023Analyst Downgrade
Werner Enterprises, Inc. stock logo
Werner Enterprises
5/11/2023$0.14$0.137.69%1.23%6/30/20237/19/2023Analyst Downgrade
Penske Automotive Group, Inc. stock logo
Penske Automotive Group
5/11/2023$0.66$0.618.20%1.6%5/19/20236/1/2023Analyst Report
Analyst Revision
Hamilton Beach Brands Holding stock logo
Hamilton Beach Brands
ESAB Co. stock logo
5/11/2023$0.06$0.0520.00%0.3%6/29/20237/14/2023Analyst Report
TORM plc stock logo
Algonquin Power & Utilities Corp. stock logo
Algonquin Power & Utilities
5/11/2023$0.2160$0.108599.08%10.02%6/29/20237/14/2023Analyst Report
Analyst Revision
Ashland Inc. stock logo
5/11/2023$0.3850$0.335014.93%1.77%5/31/20236/15/2023Analyst Report
ICL Group Ltd stock logo
ICL Group
5/11/2023$0.1132$0.10408.85%2.5%5/30/20236/14/2023Analyst Report
Cardinal Health, Inc. stock logo
Cardinal Health
5/11/2023$0.5006$0.49570.99%2.35%6/30/20237/15/2023Analyst Report
Short Interest ↓
Alerus Financial Co. stock logo
Alerus Financial
Logan Ridge Finance Co. stock logo
Logan Ridge Finance
Curtiss-Wright Co. stock logo
First Merchants Co. stock logo
First Merchants
5/10/2023$0.34$0.326.25%5.46%6/1/20236/16/2023Analyst Report
Short Interest ↑
Positive News
Hennessy Advisors, Inc. stock logo
Hennessy Advisors
5/10/2023$0.1380$0.13750.36%7.91%5/22/20236/5/2023News Coverage
Independence Realty Trust, Inc. stock logo
Independence Realty Trust
5/10/2023$0.16$0.1414.29%3.71%6/29/20237/21/2023Analyst Report
Short Interest ↑
Positive News
Portman Ridge Finance Co. stock logo
Portman Ridge Finance
5/10/2023$0.69$0.681.47%13.94%5/19/20235/31/2023Positive News
High Trading Volume
Osisko Gold Royalties Ltd stock logo
Osisko Gold Royalties
5/10/2023$0.0440$0.04107.32%1.03%6/29/20237/14/2023Analyst Revision
Positive News
Owl Rock Capital Co. stock logo
Owl Rock Capital
5/10/2023$0.06$0.0450.00%5/30/20236/15/2023Dividend Announcement
Vox Royalty Corp. stock logo
Vox Royalty
5/10/2023$0.0110$0.008037.50%1.52%6/29/20237/14/2023Positive News
Gap Down
CSP Inc. stock logo
5/10/2023$0.04$0.0333.33%1.1%5/24/20236/13/2023Gap Up
Hecla Mining stock logo
Hecla Mining
5/10/2023$0.8750$0.006014,483.33%60.24%6/14/20237/3/2023Analyst Report
Short Interest ↓
Analyst Revision
Gap Down
Townsquare Media, Inc. stock logo
Townsquare Media
5/10/2023$0.1880$0.18750.27%7.57%6/29/20238/1/2023Analyst Report
High Trading Volume
Tetra Tech, Inc. stock logo
Tetra Tech
5/10/2023$0.26$0.2313.04%0.72%5/23/20236/6/2023Analyst Revision
News Coverage
Taiwan Semiconductor Manufacturing Company Limited stock logo
Taiwan Semiconductor Manufacturing
5/10/2023$0.4890$0.359735.95%1.7%9/14/202310/12/2023Analyst Report
Options Volume
Sociedad Química y Minera de Chile S.A. stock logo
Sociedad Química y Minera de Chile
5/10/2023$3.2237$1.2020168.20%10.6%5/11/20235/11/2023Analyst Report
News Coverage
Source Capital, Inc. stock logo
Source Capital
5/10/2023$0.2083$0.185012.59%6.0%7/17/20237/31/2023Dividend Announcement
Phillips Edison & Company, Inc. stock logo
Phillips Edison & Company, Inc.
5/9/2023$0.0933$0.09300.32%3.8%5/18/20236/1/2023Dividend Announcement
Insider Buying
Artesian Resources Co. stock logo
Artesian Resources
5/9/2023$0.2840$0.27802.16%2.03%5/18/20235/26/2023Analyst Report
Positive News
VictoryShares US Discovery Enhanced Volatility Wtd ETF stock logo
VictoryShares US Discovery Enhanced Volatility Wtd ETF
5/9/2023$0.1310$0.0620111.29%3.08%5/10/20235/12/2023Short Interest ↓
News Coverage
Positive News
Houlihan Lokey, Inc. stock logo
Houlihan Lokey
5/9/2023$0.55$0.533.77%2.4%6/1/20236/15/2023Analyst Report
Analyst Revision
Ark Restaurants Corp. stock logo
Ark Restaurants
5/9/2023$0.1880$0.125050.40%4.25%5/30/20236/13/2023Short Interest ↓
High Trading Volume
National Bank Holdings Co. stock logo
National Bank
5/9/2023$0.26$0.254.00%3.5%5/25/20236/15/2023Analyst Report
Positive News
Hyster-Yale Materials Handling, Inc. stock logo
Hyster-Yale Materials Handling
Apollo Global Management, Inc. stock logo
Apollo Global Management
5/9/2023$0.43$0.407.50%2.76%5/19/20235/31/2023Analyst Report
Insider Selling
VAALCO Energy, Inc. stock logo
5/9/2023$0.0630$0.06250.80%6.09%5/23/20236/23/2023Analyst Report
Information Services Group, Inc. stock logo
Information Services Group
5/8/2023$0.0450$0.0412.50%3.52%6/6/20236/30/2023Analyst Report
Armada Hoffler Properties, Inc. stock logo
Armada Hoffler Properties
5/8/2023$0.1950$0.192.63%6.5%6/27/20237/6/2023Short Interest ↓
Credicorp Ltd. stock logo
5/8/2023$6.7385$3.938271.11%2.7%5/18/20236/9/2023Analyst Report
Gap Down
KKR & Co. Inc. stock logo
KKR & Co. Inc.
5/8/2023$0.1650$0.15506.45%1.28%5/19/20236/6/2023Analyst Report
ManpowerGroup Inc. stock logo
5/5/2023$1.47$1.368.09%3.9%5/31/20236/15/2023Analyst Report
Short Interest ↓
Cabot Co. stock logo
5/5/2023$0.40$0.378.11%2.27%5/25/20236/9/2023Analyst Report
Templeton Global Income Fund stock logo
Templeton Global Income Fund
CNO Financial Group, Inc. stock logo
CNO Financial Group
5/5/2023$0.15$0.147.14%2.6%6/8/20236/23/2023Analyst Report
Analyst Revision
Arbor Realty Trust, Inc. stock logo
Arbor Realty Trust
5/5/2023$0.42$0.405.00%14.3%5/18/20235/31/2023Analyst Report
Options Volume
Positive News
The Timken Company stock logo
Insider Selling
Alcon Inc. stock logo
LifeVantage Co. stock logo
5/4/2023$0.0350$0.0316.67%3.76%5/31/20236/15/2023Analyst Report
Positive News
Murphy USA Inc. stock logo
Murphy USA
5/4/2023$0.38$0.372.70%0.52%5/12/20236/1/2023Analyst Revision
Pembina Pipeline Co. stock logo
Pembina Pipeline
5/4/2023$0.4930$0.490.61%6.06%6/14/20236/30/2023Analyst Report
Pool Co. stock logo
5/4/2023$1.10$1.0010.00%1.24%5/16/20235/31/2023Analyst Upgrade
RLI Corp. stock logo
5/4/2023$0.27$0.263.85%0.8%5/30/20236/20/2023Analyst Report
Blue Owl Capital Inc. stock logo
Blue Owl Capital
5/4/2023$0.14$0.137.69%5.63%5/18/20235/31/2023Analyst Report
BCE Inc. stock logo
First Majestic Silver Corp. stock logo
First Majestic Silver
5/4/2023$0.0060$0.005020.00%0.34%5/17/20236/9/2023Analyst Report
Gap Down
BlackRock TCP Capital Corp. stock logo
BlackRock TCP Capital
5/4/2023$0.34$0.326.25%13.64%6/15/20236/30/2023Analyst Report
TELUS Co. stock logo
5/4/2023$0.2680$0.26401.52%5.14%6/8/20237/4/2023Analyst Report
The Brink's Company stock logo
5/4/2023$0.22$0.2010.00%1.32%5/12/20236/1/2023Analyst Upgrade
Microchip Technology Incorporated stock logo
Microchip Technology
5/4/2023$0.3830$0.35806.98%2.01%5/19/20236/5/2023Analyst Report
Short Interest ↓
Apple Inc. stock logo
5/4/2023$0.24$0.234.35%0.58%5/12/20235/18/2023Analyst Report
Short Interest ↑
Brookfield Infrastructure Co. stock logo
Brookfield Infrastructure
5/4/2023$0.3825$0.38200.13%3.6%5/30/20236/30/2023News Coverage
Positive News
FactSet Research Systems Inc. stock logo
FactSet Research Systems
5/4/2023$0.98$0.8910.11%0.9%5/30/20236/15/2023Analyst Report
American International Group, Inc. stock logo
American International Group
5/4/2023$0.36$0.3212.50%2.89%6/15/20236/30/2023Analyst Report
Leggett & Platt, Incorporated stock logo
Leggett & Platt
5/4/2023$0.46$0.444.55%5.75%6/14/20237/14/2023Analyst Report
Analyst Revision
Main Street Capital Co. stock logo
Main Street Capital
5/4/2023$0.23$0.22502.22%6.6%9/7/20239/15/2023Analyst Report
Credit Suisse X-Links Gold Shares Covered Call ETN stock logo
Credit Suisse X-Links Gold Shares Covered Call ETN
5/3/2023$1.9876$1.2262.92%5/19/20235/25/2023News Coverage
Credit Suisse X-Links Crude Oil Shares Covered Call ETNs stock logo
Credit Suisse X-Links Crude Oil Shares Covered Call ETNs
Alpha Metallurgical Resources, Inc. stock logo
Alpha Metallurgical Resources
Cogent Communications Holdings, Inc. stock logo
Cogent Communications
5/3/2023$0.9350$0.92501.08%5.36%5/17/20236/2/2023Analyst Report
Allied Motion Technologies Inc. stock logo
Allied Motion Technologies
5/3/2023$0.03$0.025020.00%0.35%5/17/20236/1/2023Short Interest ↓
High Trading Volume
Clearway Energy, Inc. stock logo
Clearway Energy
5/3/2023$0.3820$0.37501.87%5.21%5/31/20236/15/2023Analyst Report
Vistra Corp. stock logo
Vermilion Energy Inc. stock logo
Vermilion Energy
5/3/2023$0.0734$0.07300.52%2.0%6/29/20237/17/2023Analyst Report
Gildan Activewear Inc. stock logo
Gildan Activewear
5/3/2023$0.1860$0.1432.86%2.5%5/23/20236/19/2023Analyst Report
Gerdau S.A. stock logo
UGI Co. stock logo
5/3/2023$0.3750$0.364.17%4.9%6/14/20237/1/2023Analyst Report
Ryman Hospitality Properties, Inc. stock logo
Ryman Hospitality Properties
5/3/2023$1.00$0.7533.33%1.6%6/29/20237/17/2023Analyst Report
Chesapeake Utilities Co. stock logo
Chesapeake Utilities
5/3/2023$0.59$0.535010.28%1.7%6/14/20237/5/2023Analyst Report
Short Interest ↓
High Trading Volume
Enbridge Inc. stock logo
5/3/2023$0.6550$0.65380.18%6.74%5/12/20236/1/2023Analyst Report
Options Volume
How to Invest in Stocks with Increasing Dividends

One key to successful dividend investing is identifying companies that have a history of increasing their dividend yield over time. As dividend yields go up, it typically causes share prices to increase. This is a win-win for investors as they generate regular dividend income while seeing the value of their shares increase. In this article, we’ll take a look at how investors can find stocks that are increasing their dividends and how to maximize their gain from those investments

A dividend is a payment made to shareholders that comes out of a company’s profit. There are two metrics that investors monitor closely. The first is the dividend yield which reflects the value of the dividend relative to the company’s share price. The second is the payout ratio which is the percentage of profit that the company pays out as a dividend.

A dividend is declared and usually pays out quarterly. However, there are some companies that pay a monthly dividend. Still others pay a single, annual dividend. Investors that are looking for income as well as reasonable growth are attracted to dividend stocks.

Companies increase their dividend yield for several reasons.

  • The most common reason is because their net profits are increasing. As net profits increase, there is more money to return to shareholders.
  • A second reason is that a company may have a change in strategy. If a company is forecasting an economic slowdown, they may choose to put less money into capital projects. Conversely, a rapidly growing company may want to consolidate its capital gains and reassess their market position before continuing their growth strategy.
  • A third reason is in an effort to attract more equity investors.

In all cases, the choice to increase a dividend is means that a company is leaving a larger portion of their profits available to be returned to investors as dividends.

The dividend yield is the ratio of a company’s annual dividend compared to its share price represented as a percentage. To calculate dividend yield, let’s look at this example:

  • Company A announces a $2 per share annual dividend. The stock costs $40 per share.
  • Company B announces a $1 per share annual dividend. Their stock also costs $40 per share.

To calculate the yield, you would simply divide the announced per share annual dividend by the share price.

  • For company A, that would be 2/40 = 5%
  • For company B, that would be 1/40 = 2.5%

Simply put, investing $10,000 in Company A would produce $500 of annual dividend income. That same $10,000 in Company B would produce $250 in annual dividend income. Assuming all other fundamentals were the same, income-oriented investors would prefer to invest in Company A because of the higher yield.

The dividend payout ratio (also known as simply the payout ratio) gives investors an idea of how much profit a company is returning to shareholders as opposed to how much money they are keeping on hand for reinvestment, to pay off debt, or to hold as cash (i.e. retained earnings). The formula for the dividend payout ratio is as follows:

  • Dividend Payout Ratio = Dividends Paid/Net Income

Some companies will pay out 100% of their income to shareholders. An investor should expect a company’s payout ratio to be higher if they are a mature, established company. When a company has a high percentage of retained earnings, it can try the patience of investors.

Companies that pay dividends are typically mature companies in what are considered defensive stocks (utilities, consumer staples, etc.). These stocks do not generate the same capital growth as high growth stocks so they offer a dividend to help reward shareholders.

There are many companies that have a solid track record of raising their dividends. The best of the best have royal titles: princes, aristocrats, and kings.

  • Dividend princes have raised their dividend for at least 10 years.
  • Dividend aristocrats have raised their dividend for at least 25 years.
  • Dividend kings have raised their dividend for at least 50 years.

Once you’ve looked at a company’s dividend yield and dividend payout ratio, it’s still important to choose wisely. Although a dividend is generally considered to be a sign that a company is healthy, that is not always the case. Keep in mind that a dividend is an alternative measure to capital growth. Growth investors would rather invest in companies that are generating impressive revenue and plowing that money back into their business to stimulate even more growth.

A company like Coca-Cola (NYSE:KO) continues to grow year after year (it’s a favorite of Warren Buffett). However, much of Coke’s appeal is in its dividend that is both consistent and growing every year. That brings up the importance of an increasing dividend. Just because a company has a reputation for offering a dividend, investors should still expect a level of dividend growth to increase their total return.  

Also, remember that just because a company announces a dividend does not mean they have to pay it. If a company runs into financial difficulty, dividends are usually the first thing to get cut. An example of this occurred at the onset of the Covid-19 pandemic when many dividend paying companies suspended or cut their dividends in anticipation of weak revenue and/or earnings.

Any company that has both the desire and the ability to generate increased dividend payments for their shareholders is a stock worth considering for an investor’s portfolio.

Many, but not all, dividend-paying companies allow individuals to reinvest dividends through a dividend reinvestment plan (DRIP). Automatic reinvestment is a strategy for investors who do not need the regular income that is generated by dividends.

Here’s a simplified example of how a DRIP works. Company XYZ has a share price of $25 per share and a dividend yield of 5%. If an investor buys 100 shares, they will earn a yearly dividend of $125 ($2,500 x 5%). If they choose to reinvest that dividend, at the end of the year they will have purchased an additional five shares of Company XYZ stock and the value of their holdings assuming the share price remained at $25 would be $2,625. It’s a wash, right? But what if the share price climbs to $30 by the end of the year? Assuming the dividend yield does not increase, the payout would be $125, but the 105 shares would now be worth $3,150.

Some companies allow investors to put in additional money (with some minimum and maximum restrictions). An investor will typically pay market price for those shares, although some companies will sell these shares at a slight discount.

There are two caveats for investors looking to buy additional shares separate from dividends being reinvested. First, is that it can take some time to sell the shares that you buy directly from the company. Second, it is important to remember that every dividend reinvestment represents shares that are being purchased at a different price. This means that the capital gains are going to be different for every transaction. Therefore, when you go to sell these shares all of those capital gains have to be accounted for.

Investing in a dividend mutual fund or ETF is a good option for beginning investors and investors who don’t want to take the time to choose their own stocks or track individual stocks once they buy them. These funds are typically comprised of multiple dividend-paying stocks. If you believe in the idea of not putting all your eggs in one basket, this may be a great option.

However, choosing a fund can be like walking into a Baskin-Robbins. There are a lot of varieties and it’s still up to you to decide on which funds are right for you. You’ll want to look at the stocks that are included and check their dividend yield, their consistency with paying the dividend over time, their expense ratio (low is good) and the size of the company, or market capitalization. From lowest to highest risk, there are large caps, mid-caps and small caps.

If dividends are attractive to some investors why do companies cut their dividend? As we mentioned above, a company that is not rapidly growing may take on debt to spur growth. If the company takes on a lot of debt in a short period of time, the dividend may have to get cut in order for the company to service the payment of the debt.

One trap that can befall dividend investors is chasing a high yield. In some cases, a company’s dividend yield exists for good reason. But in some cases, a high dividend yield is a warning that the company is not financially stable. That’s why it’s always good to follow the strategy of looking at a company’s fundamentals to understand if their dividend yield and/or payout ratio is sustainable and also looking for companies with a history of increasing yields.

Investing in dividend stocks is a time-honored way of growing wealth slowly. Following the simple three-part strategy of choosing a company wisely, looking to reinvest your dividends, and if necessary investing in dividend mutual funds and ETFs are good ways to identify and take advantage of dividend stocks that are increasing their dividends on a regular basis.

Dividend investing is not about chasing the highest yield you can find. There are often reasons why a company is offering a high yield. Like many things in life, if it looks too good to be true, it usually is.


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