Are you an income investor tempted to chase after stocks with the highest dividend yields? Halt there! Investing solely based on yields could lead you down a precarious path. High dividends may entice you, but quality should reign supreme in your investment strategy.
Diving into a pool of established dividend stocks sets the stage for surefire, long-term dividend growth. Picture a world where dividends flow steadily, maintaining a stable trajectory even in times of economic uncertainty. That’s the power of focusing on quality.
Unveiling the Dividend Contenders
To be christened as a Dividend Contender, a company must boast a track record of 10-24 consecutive years of increasing dividends. While this pedigree might not seem extensive to some, it serves as a beacon of reliability and strength in the vast sea of investment options.
Lurking within the shadows are companies that dare not risk dividends due to flimsy business models or erratic cash flows. Steer clear of the cyclical stocks like automakers or oil companies, prone to freezing dividends when the storm clouds of recession gather.
Behold Travelers Companies: A High-Quality Exemplar
Enter Travelers Companies, an insurance stalwart commanding annual revenue of $42 billion. Their recent financial report stunned the market with adjusted earnings soaring above estimates, painting a portrait of stability and success.
Travelers marked its 20th dividend increase year on year, a testament to its unwavering commitment to rewarding shareholders even when economic tides are rough.
Closing Thoughts on Dividend Contenders
Investors seeking the elixir of dividend growth ought to pivot towards companies with proven track records like Qualcomm. A decade of dividend increases doesn’t sprout overnight—it’s a result of unwavering competitive advantages and a vision of sustainable growth.
If you crave a portfolio fortified with resilient dividend stocks that weather economic storms, consider embracing the world of Dividend Contenders.
Ready to embark on your expedition into the realm of dividend growth? Explore the bountiful seas of high-quality dividend growth stocks with Sure Dividend’s databases. Open your eyes to a world where stable, reliable dividend growth beckons, paving the way to a prosperous investing journey.
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