Value Investing News

Dividend growth investing in its classic form focuses on identifying solid companies with a long record of growing their dividends each year; and an expectation that they will continue to do so into the future. The focus is not solely on yield but a combination of yield and dividend growth. Often it is the lower yield, higher growth, security that will provide the best return over time.

Are you confident and secure in your investing process? It appears many people are not. We must follow a process we are 100% confident in. Doubt is the gateway to destructive behavior. For me, dividend growth investing is what I am confident and secure in.

Management typically evaluates short and mid-term economic and business conditions when they decide on allocation of limited resources. Cash is one such resource, which could either be reinvested back in the business, or returned to shareholders. Companies typically achieve some optimal balance in allocating cash flows from earnings between owners and the business.

There are winners and there are champions in every walk of life. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions.

Several companies announced their intent to increase distributions to shareholders. I have separated the dividend raisers of the past week in three groups: dividend achievers, champions and aristocrats; master limited partnerships; and potential dividend achievers