Value Investing News

It is good once again to see companies raising their dividends after last week pause and Kraft’s (KFT) announcement it was freezing its dividend at $0.29/share for the 5th straight quarter. Dividend increases are the fuel that keeps our dividend income machines running.

When it comes to selecting dividend stocks, one of the most important items to look for is consistency in raising dividends. Sure it is easy to increase dividends when the economy is booming and business is good, but to be consistent a company has to increase dividends during the tough times.

Why not sell no-moat companies and buy wide-moat companies if they trade at similar multiples?